N※N

Science and Technology
Source : (remove) : Jets Wire
^{RSS • JSON • XML • CSV}

Science and Technology
Source : (remove) : Jets Wire
^{RSS • JSON • XML • CSV}

A Rs 450 crore alert: Super investor Mukul Agarwal just loaded up on these 6 stocks

Super Investor Mukul Agarwal's Rs 450 Crore Bet: Loading Up on These 6 Stocks

In the ever-volatile world of Indian stock markets, few names command as much attention and respect as Mukul Agarwal. Known for his sharp acumen in spotting undervalued gems, particularly in the small and mid-cap segments, Agarwal has built a reputation as a "super investor" whose moves are closely watched by retail investors, fund managers, and market analysts alike. His investment philosophy often revolves around identifying companies with strong growth potential, robust fundamentals, and the ability to weather economic downturns. Recently, Agarwal made headlines by pouring approximately Rs 450 crore into six stocks, signaling his confidence in their future prospects amid a backdrop of market uncertainties. This strategic accumulation not only underscores his bullish stance on specific sectors but also provides valuable insights for investors looking to emulate his success. Let's delve into each of these stocks, exploring their backgrounds, recent performances, and the potential reasons behind Agarwal's hefty bets.

Starting with the first stock on Agarwal's radar: Gensol Engineering. This Ahmedabad-based company operates in the renewable energy space, specializing in solar engineering, procurement, and construction (EPC) services, as well as electric vehicle (EV) manufacturing through its subsidiary, BluSmart. Agarwal reportedly acquired a significant stake worth around Rs 100 crore, bringing his holding to about 1.5% of the company. Gensol has been riding the wave of India's green energy push, with the government's ambitious targets for renewable capacity addition playing right into its strengths. In the last fiscal year, the company reported a staggering revenue growth of over 150%, driven by a robust order book exceeding Rs 1,000 crore. Its foray into EV charging infrastructure and battery storage solutions positions it well for the burgeoning electric mobility market. Analysts believe Agarwal's investment could be motivated by the stock's undervaluation relative to peers, trading at a price-to-earnings (P/E) ratio of around 25, compared to the industry average of 35. Moreover, with global shifts towards sustainability, Gensol's expansion plans, including international projects in the Middle East and Africa, add to its allure. The stock has seen a 200% rally in the past year, yet Agarwal's entry suggests he sees further upside, possibly driven by policy tailwinds like the Production Linked Incentive (PLI) scheme for solar modules.

Next up is Triveni Engineering & Industries, a diversified player in the sugar, engineering, and water treatment sectors. Agarwal loaded up on shares worth approximately Rs 80 crore, increasing his stake to nearly 2%. Headquartered in Noida, Triveni is one of India's leading sugar producers, with a crushing capacity of over 60,000 tonnes per day. Beyond sugar, its engineering division manufactures high-speed gears and turbines, while the water business focuses on wastewater treatment plants. The company's financials have been impressive, with a 20% year-on-year revenue increase in the latest quarter, fueled by higher sugar prices and ethanol blending mandates. Ethanol, in particular, has been a game-changer, as Triveni ramps up its distillery operations to capitalize on the government's push for 20% ethanol blending in petrol by 2025. Agarwal, known for his affinity towards agro-based and industrial stocks, might be betting on the cyclical upturn in the sugar industry, which has been plagued by oversupply in the past but is now benefiting from export incentives and domestic demand. The stock's forward P/E of 15 makes it attractive, and with Triveni's debt reduction efforts—net debt down by 30%—it presents a low-risk, high-reward opportunity. Market watchers point out that the company's diversification reduces dependency on volatile sugar cycles, making it a resilient pick in Agarwal's portfolio.

Shifting gears to the consumer goods sector, Lux Industries emerges as another key addition. This Kolkata-based innerwear and apparel manufacturer saw Agarwal invest about Rs 70 crore, securing a 1.2% stake. Lux is renowned for its brands like Lux Cozi and ONN, which dominate the mass-market segment in India. The company has expanded aggressively into women's innerwear and athleisure, tapping into the growing organized retail and e-commerce channels. Financially, Lux reported a 25% revenue growth last year, with EBITDA margins improving to 18% thanks to efficient supply chain management and branding initiatives. Agarwal's interest could stem from the post-pandemic recovery in consumer spending, particularly in affordable fashion. With India's per capita innerwear consumption still low compared to global averages, there's ample room for growth. The stock has corrected 15% from its peaks due to inflationary pressures on raw materials like cotton, but this dip might have presented a buying opportunity for Agarwal, who often buys on weakness. Analysts forecast a 20% CAGR in earnings over the next three years, driven by exports to the Middle East and Southeast Asia, further bolstering the investment case.

Agarwal's portfolio also includes a substantial bet on Radico Khaitan, a prominent name in the Indian Made Foreign Liquor (IMFL) industry. He allocated around Rs 60 crore to this stock, raising his holding to 1.8%. Based in Rampur, Uttar Pradesh, Radico produces popular brands like Magic Moments vodka and 8PM whisky, and has been expanding its premium portfolio with offerings like Rampur single malt. The company's revenue surged 30% in the recent quarter, propelled by a shift towards premiumization and increased exports to over 85 countries. Factors like rising disposable incomes, urbanization, and relaxed liquor regulations in several states are tailwinds for the sector. Agarwal, with his track record in consumer discretionary stocks, likely sees value in Radico's strong distribution network and innovation pipeline, including non-alcoholic beverages. The stock trades at a P/E of 28, which is reasonable given its 25% expected earnings growth. Challenges like high excise duties exist, but Radico's focus on cost control and brand building mitigates these risks.

The fifth stock is Karur Vysya Bank, a private sector lender with a strong presence in South India. Agarwal invested Rs 90 crore, acquiring a 1.4% stake. Established in 1916, the bank has a solid retail and MSME lending book, with assets under management crossing Rs 80,000 crore. Recent quarters showed a 15% growth in net interest income, supported by improved asset quality—gross NPAs down to 2.5%. Agarwal's move aligns with the banking sector's recovery post-COVID, as credit growth picks up amid economic rebound. The bank's digital transformation and expansion into new geographies could drive future gains. Trading at a price-to-book of 1.2, it's undervalued compared to peers, making it a classic value play for Agarwal.

Finally, rounding out the list is VRL Logistics, a leader in surface transportation and parcel services. Agarwal pumped in Rs 50 crore for a 1.3% stake. The company operates a fleet of over 5,000 vehicles, serving e-commerce, FMCG, and industrial clients. Revenue grew 18% last year, with EBITDA margins at 15%. As India's logistics sector booms with GST and infrastructure push, VRL is well-positioned. Agarwal might be eyeing the e-commerce surge and multimodal logistics trends.

In total, these Rs 450 crore investments reflect Agarwal's diversified approach, spanning renewables, agro, consumer, liquor, banking, and logistics. While markets remain choppy due to global headwinds like inflation and geopolitical tensions, his picks emphasize themes like sustainability, consumption recovery, and infrastructure growth. Investors should note that while Agarwal's track record is enviable—with past winners like Polycab and Lux yielding multi-bagger returns—stock picking involves risks. Thorough due diligence is essential, and these moves could inspire but not guarantee success. As the market evolves, keeping an eye on Agarwal's portfolio adjustments will continue to offer clues into emerging opportunities. (Word count: 1,056)

Read the Full The Financial Express Article at:
[ https://www.financialexpress.com/market/stock-insights/a-rs-450-crore-alert-super-investor-mukul-agarwal-just-loaded-up-on-these-6-stocks/3928401/ ]