Vijay Kedia is one of India’s most respected investors today. But he didn’t start out as a stock market genius. In fact, his early years were full of failure and debt. At one point, his family even had to pawn their belongings to keep him afloat.
But instead of quitting, Kedia changed his approach completely.
He stopped trading for short-term gains and started investing like a business owner. His secret? He looked for small, unknown companies that had honest promoters, a big market to grow into, and a solid plan.
Then he did something most people can’t do — he held on patiently. Not for months. Not even for a few years. But for a decade or more.
Here’s how he did it — and what you can learn from him.
The Atul Auto Story: A Tiny Company With a Huge Payoff
Back in the early 2000s, no one cared about Atul Auto. It was a small three-wheeler company based in Rajkot, Gujarat. Hardly any analysts tracked it. It looked boring and unimportant.
But Kedia saw something others missed.
Atul had built a good, affordable product trusted by small-town and rural customers. More importantly, the company was only using 30-40% of its manufacturing capacity. That meant any rise in sales would directly boost profits, because most costs were already covered.
Lesson #1: When a company is underused, even a small boost in sales can lead to big profit jumps.
At the same time, rural India was changing. Roads were improving. People needed small vehicles to transport goods locally. The demand for three-wheelers was quietly growing.
Kedia held the stock for years — even when nothing happened. But as Atul expanded to other states and started using its capacity better, profits exploded. The stock jumped 40x in a few years.
Lesson #2: Big money is made by spotting value before others notice.
Kedia didn’t invest because the stock was cheap. He invested because the company had room to grow, and he trusted the promoters to get it there.
The Cera Sanitaryware Bet: India’s Bathrooms Get Fancy
If Atul Auto was about rural growth, Cera was about rising aspirations.
In the early 2000s, most Indian bathrooms were basic and functional. But things were changing. Middle-class families wanted modern homes — and that meant stylish bathrooms too.
Cera was a small player then. Bigger names like Hindware dominated the market. But Kedia noticed that Cera was building quietly — adding new products, expanding to smaller cities, and working closely with dealers.
Lesson #3: The company that grows steadily without burning cash often wins in the long run.
Cera’s real strength wasn’t just its products — it was its network. Dealers who sold one Cera product were happy to sell more. That gave Cera strong control over its supply chain.
For many years, the stock barely moved. But underneath, the business was growing steadily — more revenue, better margins, and stronger profits. From 2010 to 2017, the company took off. The stock rose over 100x from Kedia’s entry point.
Lesson #4: The market may be slow to notice — but it eventually rewards solid businesses.
Kedia stayed invested for 18 years — because the company kept delivering. He only started reducing his stake when the price had caught up to the business fundamentals.
The Mistake: Panasonic Energy — A Lesson in Letting Go
Not every bet worked. Kedia once invested in Panasonic Energy, a battery company with a strong brand and clean balance sheet.
At first glance, it looked safe. But over time, dry cell batteries (like AA and AAA) became less popular. New gadgets used rechargeable or built-in batteries. Panasonic didn’t adapt fast enough. It stayed stuck in an old product line.
Lesson #5: A business in decline, no matter how strong the brand, is a risky place to be.
Eventually, Kedia exited the stock. He didn’t hold on hoping for a turnaround. He moved on when he saw that the original reason for investing no longer made sense.
Lesson #6: It’s okay to be wrong — just don’t stay wrong.
What You Can Learn From Vijay Kedia
Kedia’s journey offers simple but powerful lessons for everyday investors:
- Look beyond the obvious. Great stocks don’t look great at the start.
- Be patient. The biggest gains come from holding, not trading.
- Know why you’re invested. Conviction matters more than perfect timing.
- Exit when the story changes. Don’t hold on just to avoid admitting a mistake.
Most importantly, Kedia didn’t follow trends. He followed clarity, discipline, and trust in businesses that could grow steadily over time.
And that’s how he turned a rocky start into a ₹1,400 crore investing success.