Anil Kumar Goel is one of India’s Warren Buffets who is known for his penchant for spotting hidden gems in the Indian stock market. His strategic investments in sugar, textiles and energy sectors are talked about in the investment circles. He currently holds 32 stocks in his portfolio with a net worth of Rs 2,016 cr (as per trendlyne.com).
He recently bought a fresh stake in a company known for co-extruded Plastic Film for packaging and industrial applications, while he sold off his stake in a manufacturer of chains, sprockets and metal formed parts for automotive applications.
You see, Goel gets down to the nitty-gritty of understanding the businesses he invests in. His strategy isn’t one-size-fits-all either; he blends finding stocks at a bargain with identifying those poised for significant growth, often in sectors that tend to boom and bust with economic cycles. So, when he makes moves in his portfolio, it is worth every penny to take notes.
Let us look at these recent moves…
Ecoplast Ltd
Ecoplast Ltd founded in 1981, engages in the business of flexible packaging and industrial fields. The company focuses on making and selling high-tech co-extruded plastic films. Ecoplast also manufactures special surface protective films, that are used to protect various materials such as steel, aluminium, and glass from harm caused by the environment. This wide range of products makes Ecoplast a go-to solution provider for many different industries.
The current market cap of Rs 241 cr, Ecoplast exports to countries like Canada, USA, UK, Dubai, Ethiopia, Mauritius, Sri Lanka, Malaysia.
Anil Kumar Goel has just bought a 1.8% stake in the company, which is about Rs 4.4 cr.
This fresh stake comes at a time when the company’s promoter holding has seen a drop from the December quarters 72.23% to 64.84% as for the quarter ending March 2025.
A better look at the financials for Ecoplast could probably help us understand the reason behind this fresh stake.
The company is still to report their March 2025 financials, but from what is available on screener.in and trenndlyne.com, Ecoplast’s sales have seen a compounded growth of just 2% from Rs 102 cr in FY19 to Rs 113 cr in FY24.
For 9MFY25 between April and December 2024, the company has logged in sales worth Rs 94 cr already.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Ecoplast was Rs 7 cr in FY19 which jumped to Rs 13 cr in FY24, which is a compound growth of 13.5%. And between April and December 2024, company has reported almost Rs 9 cr in EBITDA.
The net profits saw a compound jump of 26% between Rs 3 cr in FY19 to Rs 9 in FY24. And for 9MFY25, the profits were at 6.45 cr.
The share price of Ecoplast jumped from Rs 83 in April 2020 to its current price of Rs 698 (as on closing of 17th April 2025), which is a jump of 740% in 5 years.
A strong area where the company shines is its ROCE (Return on Capital Employed). It’s current ROCE is 32%, which is higher than the industry median of 13%. ROCE means the money the company makes on the capital it employs for the business. In this case, Ecoplast makes about Rs 32 on every Rs 100 it spends as capital.
The company is also debt free, so is in a better position to reinvest the money they make as ROCE back in the business or to pay dividends to its stake holders, without having to worry about interest payments.
Ecoplast’s share is trading at a current PE of a 26x, while the industry median is around 23x. The 10-Year median PE for Ecoplast is 12x, while the industry median for the same period is 16x.
According to the company’s last annual report, their focus was on reducing raw material costs by reviewing technical and concentrated buying efforts, developing products for new applications of surface protection films and converting increased volumes by outsourcing to overcome capacity constraints.
It would be interesting to see what their next report says on how well they did on those parameters, as that would probably hold some cue to Anil Kumar Goel’s interest in the company.
L G Balakrishnan & Bros Ltd
Established in 1937 as a transport business, L.G. Balakrishnan & Bros Limited has since transformed into a key player in the automotive industry, primarily focused on crafting essential components like chains, sprockets, and metal formed parts.
The company operates through two main divisions: transmission, which encompasses a range of products from chains and sprockets to belts and brake shoes, and metal forming, where they produce precision parts, machined components, and even the wires used in their own chain production and beyond.
With a market cap of Rs 3,880 cr, L G Balakrishnan is a market leader with a market share of over 60% when it comes to 2-wheeler chain segment.
Anil Kumar Goel held a 1.24% stake in the company as of the quarter ending December 2024. As pe the current share holding pattern, he has since sold his stake.
Let us look at the financials to see if we can find out the reason for this decision.
L G Balakrishnan’s sales have seen a compound growth of 7% from Rs 1,688 cr in FY19 to Rs 2,346 cr in FY24. And between April and December 2024, the company logged in sales of Rs 1,909 cr already, signalling a potential good upcoming quarter.
EBITDA went from Rs 209 cr in FY19 to Rs 395 cr in FY24, which comes up to a 14% compounded growth. And for the period of the 3 quarters between April and December 2024, it has already recorded Rs 313 cr in operating profits.
The net profit was Rs 100 cr in FY19 which grew at a compound rate of 24% to Rs 271 cr in FY24.
For the 3 quarters between April and December 2024, L G Balakrishnan has recorded profits of Rs 218 cr.
The current share price of L G Balakrishnan Rs 1,216, which is a 480% jump over its 5-year-old price of Rs 210.
L G Balakrishnan also has an impressive current ROCE of 23%, which is higher than the industry median of 15%.
The company’s share is trading at a current PE of 14x, while the industry median is 25x. The 10 Year median PE for the company is 13x while the industry median for the same period is 26x.
The company has capex plans of Rs 240 Cr in FY25, Rs 200 Cr in FY26, and Rs 200 Cr in FY27, predominantly for product diversification, and capacity enhancement partly through debottlenecking and maintenance capex.
Conclusion – portfolio rejig or strategic moves?
Anil Kumar Goel’s recent portfolio moves, buying in Ecoplast Ltd and selling off L G Balakrishnan & Bros Ltd raise a lot of questions in the minds of his followers. On one hand his stake in Ecoplast, a debt-free company crafting specialized plastic films with a stellar 32% ROCE speaks of his faith in a business that serves diverse industries with precision and promise.
On the other, his selling L G Balakrishnan, a stalwart in automotive components with a 23% ROCE, suggests not a lack of quality but a deliberate shift—perhaps to fields less tethered to flow of economic tides. Goel’s latest moves prompt us to ask: what does he see in Ecoplast’s steady climb and global reach, or in the broader currents that led him to step away from L G Balakrishnan’s robust growth?
Well, only time will tell us what this Warren Buffet of India had in his mind when he made these changes. For now, a vigilant eye on these stocks is not a bad idea.
Disclaimer
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.