Vijay Kedia has maintained his positions in Repro India and Mahindra Holidays despite significant price corrections, according to reports from The Financial Express. The stocks have declined 68% and 55% respectively from their record highs, yet Kedia continues to hold both positions. His methodology, dubbed SMILE (small in size, medium in experience, large in aspiration, extra-large in market potential), emphasizes long-term holding periods for companies with strong market potential. Kedia has held Repro India since at least December 2015 and Mahindra Holidays since June 2021, demonstrating his commitment to these undervalued opportunities.
According to The Financial Express analysis, Repro India's financial metrics reveal significant challenges despite growth in top-line revenue. The company reported ₹129 crore net profit in Q1 FY26, but this was primarily driven by ₹167 crore exceptional gain from land sale at Mahape. Operating profit for the quarter stood at just ₹4 crore with a 2.9% margin, while the printing business generated minimal earnings. The company's five-year sales CAGR of 29% appears impressive but is largely attributed to the low FY21 base during pandemic disruptions. Kedia currently holds 6.3% stake worth ₹29 crore, down from 7.1% in March 2023.
As reported by The Financial Express, Mahindra Holidays achieved record quarterly revenue of ₹733 crore in Q1 FY26 but faced significant operational headwinds. The company reported net loss of ₹8.55 crore due to high depreciation of ₹109.40 crore and interest costs of ₹47.07 crore against operating profit of ₹113 crore. The 12% five-year sales CAGR and 21% operating profit CAGR are primarily attributed to the pandemic-impacted FY21 base. Kedia maintains a 1% stake worth ₹46 crore in the company, unchanged since June 2021.
According to The Financial Express, both stocks trade at significant discounts to their historical highs and industry peers. Repro India trades at 1.3 times book value compared to its ₹244 book value per share, while Mahindra Holidays trades at 97x PE versus the industry median of 30x. Foreign institutional investors have reduced their stakes in both companies, with Mahindra Holidays seeing foreign holdings drop from 5.3% to 4.01% in one quarter. However, retail investors have increased their participation, with Mahindra Holidays individual shareholders rising from 70,600 to 96,220 since September 2023.
