Everyone could learn some tricks of Dalal Street from this 29-year old stock trader

Ekansh Mittal is not just a 29-year-old trader from Kanpur who makes some money in the stock market. In fact, keeping a close eye on potentially money-spinning shares, he holds shares the prices of which have surged up to 1,700% in last six years.

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With an ability to spot potential shares that turn big in smallcap and midcap segments, Mittal picks easy-to-understand businesses that can generate high returns on capital employed (RoCE).

As of now, he holds stocks of Cera Sanitaryware, Wim Plast, and Acrysil, among others. Shares of these three companies, which he spotted 2011, have delivered 1,700%, 1,400% and 500% returns, respectively.

He is still holding these stocks.

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However, his journey in the share market has not been all highs and no lows. He lost money with IPCA Labs and Eros International because of not being clear about the gravity of the USFDA-related issues for IPCA labs, and accounting policies of Eros International.

Other than losing money he invested, he also remembers not investing in Ajanta Pharma, Caplin Point, Astral Poly Technik and La Opala RG, even though he had realised their potential.

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Talking about his strategy to picking stocks, he said that after screening stocks on the basis of financial performance, “We compare it to peers to get an overview of the overall industry and understand industry dynamics in more detail. Lastly, we try and reach out to the management through one-on-one meetings, AGMs or through conference calls but the focus is not to get future guidance but to improve our overall understanding of the business and the various variables involved.”

Ekansh has a fondness for market legends like Raamdeo Agrawal, Howard Marks, Sanjay Bakshi and Vijay Kedia, taking interest in their interviews and following them.

“These are all giants of the investing field and there’s so much to learn from their experiences, both good and bad,” he told ET.


(Image source Dainik Bhaskar)