In this edition, we pick up an insightful conversation from The Ramneek Kundra Show, where Rohit Singhania (Fund Manager), opens about his philosophy, mistakes, and what really drives his decisions.

1. If investors can’t always see performance, what should they trust?

I never say I’m buying stocks for five or ten years.

I don’t buy with a fixed 10-year horizon. I don’t think it’s realistic. What I do is look at the next 18 to 24 months. Every quarter results come in, every six months balance sheets are released and I keep checking if they are in line with my expectations. If they are, I continue to hold and roll the view forward. That way, the process is dynamic, disciplined, and based on real numbers rather than assumptions about the distant future.

2. Do you ever overpay for a stock?

You can’t fight the business momentum.

Yes, sometimes I do. There are moments when the delivery of a business is so strong that valuations alone can’t be the deciding factor. You can’t fight business momentum. If the company is compounding consistently, it makes sense to pay a premium. Over the years, I’ve learned to adapt my framework, it’s not about overpaying blindly, but about recognising when the growth is sustainable enough to justify it.

3. How do you think about quality vs. low quality businesses?

Every business is a good business, they have cycles.

I don’t like the labels of “low quality” and “high quality.” Every business has a cycle. What matters is whether it contributes to NAV growth for the right reasons. I would rather own a cyclical business that delivers strong returns in its upcycle than hold a so-called quality stock that doesn’t generate meaningful returns. To me, it’s about timing, discipline, and recognising that cycles drive outcomes.

4. Can you share a mistake that changed your perspective?

That was a mistake I made in the 2018-19 period.

When I started, I was driven purely by valuations. In 2016-17, I would ignore companies growing at 30% because they looked expensive and focus on cheaper ones growing at 10%. That was a mistake. In 2018-19, I realised that consistent growth deserves a premium. You don’t want to overpay blindly, but you also can’t undervalue strong execution and business durability. That learning changed the way I look at stocks and helped me evolve as an investor.

5. Why Indus Towers when everyone was buying Bharti Airtel?

Everyone was bullish on Bharti… we saw Indus Towers as the second-derivative play.

When the market consolidated to three big players, Bharti Airtel was the obvious favourite. We were bullish on it too. But I asked myself, who else benefits from telcos expanding? The answer was towers. When we met Indus’ management, their clarity on expansion and debt gave us comfort. So yes, we held Bharti, but we also bought Indus Towers as a second-derivative play at the right price. Sometimes, looking one layer deeper in the value chain can make all the difference.

6. Do you regret selling too early sometimes?

I will not be wondering ‘what if it goes up'.

Of course, there have been times when I sold too early. But I follow a framework. At any given price, I ask myself: am I comfortable with the outlook? How does this compare with other opportunities in the portfolio? If the stock looks expensive or has already done its job, I exit. I don’t waste time thinking “what if it goes up.” That kind of thinking traps you and stops you from moving capital to better ideas. For me, discipline in selling is just as important as conviction in buying.

7. What roles do your analysts and research team play?

I truly believe having a good analyst team is really helpful.

A strong analyst team is critical. As a fund manager, you can’t know everything. The depth analysts bring through detailed models, management interactions, and forensic checks gives me a much stronger base. At DSP, we track more than 300 companies every quarter with updated models. That’s the kind of preparation that allows me to take decisions confidently. Running the portfolio is my job, but sourcing and shaping new ideas that’s where the analysts play a vital role. Without them, it would be impossible to run the portfolio at this scale.

Editor’s Note: What sets Rohit apart is not a fixed playbook, but a willingness to evolve. He admits mistakes, challenges labels like “quality vs low quality,” and focuses on cycles over noise.

As Ramnik Kundra summed it up:
“…we are not talking about performance. We are talking about the thinking that drives it.”

Watch the full episode of The Ramneek Kundra Show