Vijay Kedia is holding the highest cash position of his entire investing career, the ace investor told NDTV Profit.
Kedia's stance stems not so much for the lack of optimism around prospects for the Indian economy but from his lack of comfort with market valuations.
"I am cautious in this market as valuations are not cheap," Kedia said, noting that he is waiting for the right opportunities. The high cash holding, which he estimates at 25% to 30% including liquid securities, is a strategic move to preserve capital.
“The market is in a very unique place now and I don't know what shape it will take. Because of the confusion I have decided to park cash in liquid shares where it will not multiply but will be safe,” he said.
Kedia is considered as one of India's finest mid and small-cap investors, having a portfolio of Rs 1,130 crore, according to disclosure of companies where he holds more than 1% stake. His top holdings are Atul Auto and Neuland Laboratories.
Navigating Market Confusion
"I am not looking for the market to climb 1,000 points but am looking for the confusion to settle," he said, adding that he will deploy additional capital only when there is visibility.
Equities have been rattled by the ongoing global economic uncertainty precipitated in part by US President Donald Trump's tariff wars.
The India Story, Domestic Focus
Despite his cautious stance on valuations, Kedia's belief in the India growth story remains unchanged. He said that the market is not too worried that the US tariffs will affect India. "This is new India and we will find a way," he said.
His investment philosophy is rooted in the nation's self-reliance. It comes down to the consumer and their choices in India, he said.
"It is time for India to make its own products, it's time for revolutionary reforms, let people earn and protect the nation," he noted.
Kedia added that his focus is on domestic theme companies that are not dependent on the US or any other countries.
He termed the ongoing earnings season as a "mixed bag".
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