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Coffee Can Investing: Sunil Singhania shares the rationale behind Bajaj Finance, Eicher, JSPL, TVS bets

Sunil Singhania, Founder, Abakkus Asset Manager, talks about the factors that went into his investments in Bajaj Finance, Eicher Motors, JSPL and TVS Motor when he was a fund manager at Reliance Mutual Fund

October 25, 2018 / 03:02 PM IST

In this episode of Coffee Can Investing, Sunil Singhania, Founder, Abakkus Asset Manager tells Saurabh Mukherjea on his journey from a practicing chartered accountant to becoming a professional fund manager, to founding his own money management firm.

He talks about the factors that went into his investments in Bajaj Finance, Eicher Motors, JSPL and TVS Motor when he was a fund manager at Reliance Mutual Fund.

While a purist, given his background in chartered accountancy, Singhania acknowledges the limits of conventional approaches to investing.

“I am okay with the DCF (discounted cash flow) forecasting,” he says. “The only thing is that how can you focus something for 50 years in this disruptive world, and in the DCF world even if you increase or decrease the discounting rate by 1 percent you can have stock going up by fifty percent or going down by fifty percent,” he says. DCF is a popular valuation method used by analysts to arrive at a company's fair value by forecasting its future earnings growth.