Learn How to Invest in Small-Cap & SME Companies with Stock Examples with Kapil Ahuja

In the video, Kapil Ahuja, a second-generation investor, shares insights on investing in small and undervalued companies, particularly those in niche and volatile sectors. He emphasizes the importance of growth and strong promoters, using the example of Anna Purna Swadhishth, which grew from a 50 crore market cap to acquiring companies worth 200-200 crores in a few years. Ahuja encourages investors to do their homework, be patient, and take advantage of market downturns to buy undervalued stocks.

He also advises against using leverage and having cash on hand for investing opportunities. Ahuja shares his investment strategy, emphasizing the importance of management quality, financial health, and debt management. He also discusses the potential of unorganized sectors becoming organized and the benefits it brings to both the companies and global brands. Throughout the conversation, Ahuja encourages continuous learning and staying updated with a company's management and social media updates.

He emphasizes the importance of concentrated portfolios for experienced investors but recommends diversification for beginners. Ahuja reveals that he currently holds two stocks, which make up 40% of his portfolio, having seen significant growth. He advises against selling winning stocks and instead encourages adding to them.

Ahuja then shares his most successful investment, Gujarat Bodo Sale Company, which he bought in 2015 and sold in 2022. He held the stock for around 5-6 years and became the largest shareholder outside the promoter, resulting in a substantial capital gain. According to Ahuja, key factors for investing in small companies include assessing their financial health, managing debt, and evaluating management quality.

He also mentions the possibility of creating an Alternative Investment Fund (AIF) for investing in QIPs and the benefits and challenges of AIF compliance. The speaker emphasizes the importance of learning from experienced investors in the SME segment and encourages viewers to share the video to help more people discover the right way to earn money.