Zerodha books profit in BSE, adds Radico Khaitan to portfolio in Q1

Zerodha reduced its stake in BSE from 23.3 lakh shares (1.72%) in the March quarter to 19.8 lakh (1.46%) in the June quarter. This reduction follows BSE’s exceptional performance, with a 28% year-to-date (YTD) gain, an impressive 209% increase over the past year, and a staggering 667% rise over the past three years. Zerodha’s stake in BSE is valued at about Rs 563 crore.

Simultaneously, Zerodha added Radico Khaitan to its portfolio, acquiring 13.9 lakh shares (1.04%) in the June quarter. Radico Khaitan, known for its popular brands like Magic Moments vodka, 8PM whisky, and Rampur premium Indian single malt, has posted a modest 8% YTD gain and a 45% rise over the past year. The broking firm’s portfolio valuation in the company stands at approximately Rs 271 crore.

Earlier in July, Nikhil Kamath, co-founder of Zerodha, shared insights about his investment in Radico Khaitan on his podcast, ‘WTF is’. During the episode titled ‘WTF, Alcohol is a $70B Business in India?’, Kamath had said that Zerodha held a 1.6-1.7% stake in Radico Khaitan, valued at approximately Rs 400 crore. He highlighted the strong performance of Radico Khaitan as a key factor behind this investment, noting that the stake was acquired through open market transactions. Kamath humorously mentioned,

“We have Rs 400 crore of Abhishek’s stock – Radico, which is a great investment for me, so don’t blame me for being a bit nicer to him,” referring to Abhishek Khaitan, MD of Radico Khaitan.The broking firm’s other portfolio holdings displayed varied performance. CarTrade Tech, with no change in shares held, delivered a 16% YTD gain and a 48% increase over the past 12 months. RBL Bank faced challenges, declining 21% YTD and 5% over the past year. Meanwhile, Federal Bank, where Zerodha’s holding remained steady, showed a strong 25% YTD gain and a 36% increase over the past year, outperforming both the Sensex and BSE Bankex.Following the strong rally in Federal Bank, Axis Securities reiterated its rating on the bank with a target price of Rs 230, indicating an upside potential of 18% from the current market price of Rs 195.”With a strong start to FY25, the bank remains well-positioned to sustain its growth momentum throughout the year, supported by healthy demand. The bank intends to focus on growth opportunities where the risk-reward profile is favorable,” Axis Securities noted.

The total valuation of Zerodha’s portfolio in listed stocks is Rs 1,536 crore. Meanwhile, the Kamath brothers, founders of Zerodha, have an estimated net worth of Rs 41,000 crore, according to the Hurun India Rich List 2024.