Radhakishan Damani, often referred to as the “Retail King of India” and admired for his Buffett-like investing style, is known for his quiet conviction and long-term bets. While most investors panic at steep declines, Damani remains unfazed—even when one of his long-held stocks, Aptech Ltd, has plunged nearly 70% from its all-time high. So, what does he see that others don’t?
The Stock in Question: Aptech Ltd
Aptech Ltd, a pioneer in non-formal education and vocational training, has been part of Damani’s portfolio since December 2015. His stake, held under his brother Gopikishan Damani’s name, currently stands at around 3%, valued at approximately ₹23 crore.
Despite the stock trading at ₹127 as of mid-August 2025—down from its peak of ₹423—Damani hasn’t exited. Instead, he continues to hold firm, signaling deep-rooted belief in the company’s fundamentals and long-term potential.
Business Performance: Mixed Signals
Aptech operates across diverse verticals including:
- IT training
- Media and entertainment
- Aviation and retail
- Beauty and wellness
- Banking and finance
- Preschool education
It serves both individuals and enterprises, with a global footprint. Financially, the company has shown impressive top-line growth:
- Revenue grew from ₹158 crore in FY20 to ₹476 crore in FY25—a CAGR of 24%
- Q1 FY26 alone saw ₹120 crore in revenue
However, profitability has been under pressure:
- EBITDA margins have declined in FY25
- Net profits have also seen a dip, raising concerns about operational efficiency
Valuation Metrics
- Current Price: ₹127
- All-Time High: ₹423
- PE Ratio: 35x (vs. industry median of 36x)
- 10-Year Median PE: 36x
- Industry 10-Year Median PE: 26x
Despite the fall, Aptech trades at a valuation comparable to its historical average, suggesting that the market still sees potential in its business model.
Why Damani Might Be Holding
Here are some possible reasons behind Damani’s continued interest:
1. Long-Term Vision
Damani is known for his patience. His biggest bet—Avenue Supermarts (D-Mart)—was held for years before it became a multibagger. Aptech may be another long-term play where he sees value beyond short-term volatility.
2. Sectoral Potential
India’s ed-tech and vocational training sector is poised for growth, especially with increasing demand for skill-based education. Aptech’s diversified offerings position it well to capitalize on this trend.
3. Turnaround Opportunity
With strong revenue growth and a wide footprint, Aptech may be undergoing a temporary margin squeeze. Damani might be betting on a turnaround in profitability once operational efficiencies kick in.
4. Insider Confidence
Damani’s continued stake signals insider confidence. For retail investors, this can be a cue to look deeper rather than react to price movements alone.
Risks to Watch
- Declining margins and net profits
- High PE ratio despite falling price
- Competitive pressure from newer ed-tech players
- Execution challenges in scaling enterprise business
Final Thoughts
Damani’s investment style is built on conviction, patience, and deep value. While Aptech’s stock has taken a beating, its fundamentals—especially revenue growth and sectoral positioning—remain intact. For investors willing to look beyond the noise, Aptech might still hold promise.
But as always, caution is key. Damani’s moves are worth watching, but they’re not a substitute for individual due diligence.
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