Nemish Shah, the almost invisible super investor to the common man, is very well known in India’s investment circles. In 1984, Nemish along with his partner Vallabh Bhanshali, also someone else who deserves to be called Warren Buffet of India, founded one of India’s leading financial advisory institutions – ENAM Securities. ENAM recently merged its investment banking and broking operations with Axis Bank.
Currently this Warren Buffet of India, Nemish Shah, holds 7 stocks in his individual portfolio, with a net worth of over Rs 2,888 cr. Enam Securities Pvt Lt holds 37 stocks worth Rs 14,119 cr.
But today we will dig into 2 midcap stocks that Shah has held for a decade in his personal portfolio. After all, when someone like Shah invests in a less known company and then trusts it for a decade, it warrants all the attention.
What is it in these stocks that have kept Shah hooked onto them for a decade. Let us try and find out.
Lakshmi Machine Works Ltd – LMW
Lakshmi Machine Works (LMW), established in 1962, is a key player in global textile machinery. They are one of only three companies worldwide that build the full range of spinning equipment. Beyond textiles, LMW produces CNC machine tools, heavy castings, and parts for the aerospace sector. Essentially, they provide the backbone for India’s textile industry, offering everything from raw material processing to finished yarn production.
With a market cap of Rs 17,313 cr, the company has seen a holding by Nemish Shah from as back in time as December 2015 (as per data available on Trendlyne.com). As on the quarter ending December 2024, Shah holds 5.43% stake in LMW with a holding value of over Rs 1,500 cr.
According to the transcript of the company’s latest earnings call from January 2025, it has an order book of Rs 3,100 cr, of which the active orders are around Rs 2,300 cr.
The sales for LMW have grown at a compound rate of 12% from Rs 2,712 cr in FY 19 to Rs 4,696 cr in FY24. And 9MFY25, the company has logged in sales of Rs 2,208 cr.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for LMW has also grown from Rs 274 cr in FY19 to Rs 435 cr in FY24, logging in a compound growth of about 10%. And for the 9MFY25, the EBITDA of Rs 81 cr has been recorded.
Talking about the net profits, LMW has seen a compounded growth of 12% as the profits went from Rs 185 cr in FY19 to Rs 374 in FY24. And in 9MFY25, the net profits are already at Rs 54 cr.
The share price of LMW is currently Rs 16,206 (as on closing of 22nnd March 2025), which is a 575% jump on its 5-year-old price of about Rs 2,400. The current price however is a 16% discount on the stocks all-time high price of Rs 19,200, which it had hit in late 2024.
The company’s share is trading at a current PE of 143x while the 10-year median is around 36x.
It must also be noted is that the company is almost debt free and is maintaining a healthy dividend payout of 24%.
In the January investors call, LMW’s management reports a persistent slump in textile machinery demand, a direct consequence of soaring cotton prices and squeezed profit margins for spinners. This has triggered widespread deferrals of capital expenditure. Despite hopes, export markets like Bangladesh and China have not provided the anticipated boost. So, LMW’s outlook hinges on a stabilization of raw material costs and supportive government policies. While mills are operating at high capacity, profitability remains under pressure, impacting both new order bookings and demand for spare parts.
Asahi India Glass Ltd (AIS)
Asahi India Glass Ltd (AIS), incorporated in 1984 as Indian Auto Safety Glasses, a joint venture backed by Maruti Udyog and Japan’s Asahi Glass dominates India’s integrated glass solutions market, serving the automotive, architectural, and consumer sectors.
AIS Auto Glass stands as India’s premier automotive safety glass manufacturer, and a major player in Asia. They supply top automakers like Maruti, Hyundai, Tata, and many others.
With a market cap of Rs 15,262 cr, AIS has seen a sustained interest by Nemish Shah from as far back as December 2015 (Since data is available on Trendlyne.com).
As per the quarter ending December 2024, Shah holds a 1.38% stake in the company with a holding value of over Rs 900 cr as per trendlyne.com.
As for the financials, the company’s sales grew from Rs 2,913 cr in FY19 to Rs 4,341 cr in FY24 which is a compounded growth of 8%. For 9MFY25, the company has recorded sales of Rs 3,415 cr.
EBITDA grew from Rs 510 cr in FY19 to Rs 724 cr in FY24, logging in a compound growth of a little over 7%. For 9MFY25, AIS has logged in Rs 569 cr in EBITDA.
The net profit grew at a compounded rate of 12% from Rs 188 cr in FY19 to Rs 325 cr in FY24. And for 9MFY25, the profits are at Rs 277 cr.
AIS’s share price was around Rs 150 in March 2020 and saw a high of around Rs 835 around September last year. As on closing of 22nd March 2025, the current share price is Rs 628, which is around a 320% jump from its 5-year-old price of March 2020.
The current price is around a 25% discount on the stocks all-time high.
The company’s share is trading at a current PE of 47x while the industry median when compared to peers is 29x. The 10-year median PE for the company is 16x and the industry median for the same period is 39x.
The biggest stake holder in AIS is Asahi Glass Company Ltd (AGC), is one of the leading manufacturers of glass globally, with a 12% global market share in the float glass segment and 30% in the auto glass segment.
As for the growth plans, AIS spent over Rs 900 cr in FY24 and planned to incur a capex of Rs 1,500 cr in FY25.
Insight or Instinct?
Nemish Shah’s decade-long loyalty to LMW and AIS reveals more than mere investment strategy—it kind of gives us a peek into his investment philosophy. In a market obsessed with quarterly results, his steadfast commitment to these midcaps poses a profound question: What intrinsic qualities does Nemish see in these companies that others don’t?
While LMW’s manufacturing resilience and AIS’s sector dominance show that Shah prefers foundational strength over fleeting momentum, it still remains to be seen if these holdings will continue their trajectory or serve as replicable models for retail investors.
Raw financials only scratch the surface. The true determinants lie in strategic foresight, leadership agility during industry turbulence, and organizational adaptability. So, do these choices stem from Shah’s intimate understanding of Indian industrial ecosystems, or do they represent calculated bets on structural growth vectors?
Guess one must keep these stocks on watch and see if the answer can be found.
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.
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