Samir Arora on The Stock That Surprised Him: A 150% Return Beyond Expectations
Helios Capital founder and fund manager Samir Arora shared insights into his investment strategy and the unexpected windfall from early bets on companies like Ather Energy and Eternal Capital. Speaking to NDTV Profit, Arora emphasised the importance of diversification and the unpredictability of market favourites.
Investment Strategy: Not Betting on One Stock
“We don’t bet on any one stock to change our life,” said Samir Arora, explaining the philosophy behind Helios Capital’s portfolio construction. “We believe that if we buy 20 stocks with research and rigour, some say 10 or 12 will do very well, some will break even relative to the market, and some will lose us money or even embarrass us once in a while.”
Standout Performers: Ather and Eternal
Reflecting on some of the fund’s standout performers, Arora pointed to Ather Energy and Eternal Capital as examples of investments that exceeded expectations. “You really think that when we bought Ather we were anchored, that we ever in our life dreamt it would be a 150% return and we’d say, ‘Wow, very good’? We were going for 25% return,” he said.
He emphasised that such outcomes are rarely predictable. “Nobody knows what the market chooses as their love for the next 6–12 months,” he added.
Zomato: Another Case of Surpassed Expectations
Arora also cited Zomato (Eternal) as another case where the outcome surpassed initial expectations. “Even Zomato we bought at 52, but not me; the management also did not know that they were going into quick commerce or that quick commerce would take off so well,” he said. “If it had not taken off so well, this stock you would have been selling at 80, 90, 100, or 50 per cent.”
Building a Balanced Portfolio
The fund manager reiterated that while some investments may deliver outsized returns, the strategy remains rooted in building a balanced portfolio. “It’s all individually done with an eye only on the big picture,” he said, adding that 80–90% of the portfolio remains consistent over time, with only 10–20% shifting based on current events or sectoral trends.
Key Takeaways for Indian Investors
For Indian investors, Arora’s insights offer valuable lessons in the importance of diversification and not relying on a single stock for significant returns. By spreading investments across a range of sectors and companies, investors can mitigate risk and potentially capitalize on unforeseen market opportunities.
Moreover, the story of Ather and Eternal serves as a reminder that even with thorough research, the stock market can be unpredictable. Staying informed about market trends and being prepared to adapt to changing circumstances are crucial for navigating the complexities of the Indian stock market.
Conclusion
In conclusion, Samir Arora’s experience with Ather and Eternal highlights the potential for unexpected windfalls in the stock market, but also underscores the importance of a well-diversified investment strategy. As Indian investors look to navigate the opportunities and challenges of the market, they would do well to heed Arora’s advice and maintain a balanced portfolio with a long-term perspective.
