750% return in a decade! D-Street’s Professor M wields a magic wand to make stocks sing


NEW DELHI: You may not find a Wikipedia page on Shivanand Shankar Mankekar, but he is known as ‘Professor’ on Dalal Street.

He loves to keep a low profit, but makes big money on his conviction ideas, which often outs him in the limelight. A 100-times return on the PantaloonBSE 1.30 % stock, eye-catching gains on United SpiritsBSE 0.65 % and a couple of pharma stocks are some of the big stories of this ‘professor’.

Mankekar, his wife Laxmi Shivanand Mankekar and son Kedar Mankekar held very few stocks as of December 31, data available on corporate database Capitaline showed.

But nobody has an idea of his total wealth, as holdings of Mankekar and family in most companies have often been less than 1 per cent and, as per the rules, companies disclose names of only those shareholders who hold over 1 per cent stake in an entity.

StridesBSE -0.63 % Shasun is one stock in which the ‘professor’ and his wife held 30,14,499 shares, or 3.38 per cent stake, as of 2016 end, worth Rs 319 crore. The stock has rallied quite a bit this year and the holding is worth Rs 346 crore at prevailing price.

As per Capitaline data, Mankekars have been holding this stake at least since the March quarter of 2012 i.e. for five years.

Accounting for the dividends that the Mankekars would have earned during this period – including Rs 500 per share special dividend in 2013 and Rs 105 announced by the company in 2014 – this stock has generated 6.3 times or 516 per cent returns during this period (based on the dividend-adjusted stock price) over its average dividend-adjusted price for the March 2012 quarter.

Sequent Science is another stock where Shivanand and his better half held a combined 91,49,660 shares, or 3.76 per ent stake, as of December 31. The shares are worth Rs 116 crore at current market price. The stock has given a return (dividend adjusted) of 4.28 times, or 328 per cent, over the average price for the September quarter of 2012 (less than five years).

Mankekars were among the top 10 shareholders in Talwalkars Better Value FitnessBSE 0.94 % portfolio, when the company floated its IPO, the red herring prospectus showed. They have been associated with the company since January 2006, much before its listing in 2010.

Some media reports suggest the average price at which the Mankekars bought the shares was Rs 22.8, which makes the portfolio worth Rs 3.5 crore. The stock has since generated a massive 742 per cent return, or 8.15 times over that price. Lakshmi Vilas BankBSE -0.09 % and Galaxy EntertainmentBSE 4.11 % Corp are two other companies where the Mankekars had a stake till the end of 2016.

As of 2016 end, Kedar Shivanand Mankekar held 2.11 per cent stake in Lakshmi Vilas Bank, which amounts to Rs 63 crore as per current market price. Kedar has been holding this stake since the March quarter of 2013.

The stock has generated 146 per cent return on a dividend-adjusted basis in these four years. Mankekars also have a stake in Galaxy Entertainment, a small company, since 2005. The shares are worth Rs 61 lakh as on date.

There are many other stocks such as WockhardtBSE 0.09 %, Future Enterprises, HCL InfosystemsBSE 0.93 %, Future Lifestyle, Cox & Kings, Bharat Financial, Century TextilesBSE 0.49 % and 63 Moons Tech (Financial Tech) where the Mankekars held over 1 per cent stake as of 2015 data. It is not clear whether the Mankekars have exited these counters or still hold stakes below 1 per cent in these stocks.