Rekha Jhunjhunwala is a name that is well known for calculated investment strategy. While her husband Rakesh Jhunjhunwwala often dominated financial headlines, Rekha’s name is not that widely seen on media, but her portfolio does all the talking. Her patience combined with deep fundamental analysis—has consistently helped her pick future multibaggers before the market catches up.
Unlike the names you would frequently see in the media, Rekha lets her results speak volumes. Her investment strategy continues to yield some solid returns that have earned her the quiet respect of investment veterans.
No wonder she is considered the woman Warren Buffet of India. So, when she maintains positions in small-cap stocks for over a decade, it demands attention. What qualities do these companies possess that warrant such steadfast loyalty through bull and bear markets alike? Let us dive in and try to find out.
Agro Tech Foods (now Sundrop Brands Limited) holds a dominant market position in the edible oils and branded foods sector, in India. The company is well known for brands like Sundrop, Health World, ACT II and Rath in its portfolio. ATFL has two business segments namely Branded Foods Segment and Bulk and Processed Commodities Segment.
With a market cap of Rs 3.058 cr, ATFL acquired Del Monte Foods Pvt. Ltd. for Rs. 1,300 cr via a share swap in November 2024. This acquisition according to the company will add a topline of over Rs 500 cr.
Rekha Jhunjhunwala has held a stake in the company since December 2015 (since records were available), per Trendlyne.com. And as of February 2025, she still holds 2.25% stake in ATFL.
ATFL’s FII holding saw a jump between the quarters ending September and December 2024, from 0.79% to 1.26%. However, as per data on screener.in for February 2025, the same has once again gone down to 0.73%.
Let us look at the company financials to see if we can find out what is it that Rekha sees in ATFL.
The company’s sales have seen a 6.5% drop from Rs 812 cr in FY19 to Rs 760 cr in FY24. In the 3 quarters between April 2024 and December 2024, the company has recorded sales of Rs 595 cr.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for ATFL was Rs 65 cr in FY19 which has fallen to Rs 34 cr in FY24, which is a substantial degrowth.
The net profits have also seen a drop of 70% from Rs 34 cr in FY19 to Rs 10 cr in FY24. For the quarters between April and December 2024, the profits are just about Rs 4 cr.
The financials look concerning, given that Rekha has been invested in the company for over 10 years.
The share price of ATFL however seems like a silver lining. The share price grew from Rs 430 in March 2020 to Rs 811 as of the closing on 21st March 2025. That is a jump of 89% in 5 years.
The all-time high for the share price of ATFL is Rs 1,152, which means at the current price of Rs 811 it is trading at a discount of over 30% on its all-time high.
ATFL’s share is trading at a current PE of a huge 445x, while the industry median is around 31x. The 10-year median PE for ATFL is 57x, which is comparatively closer to the industry median for the same period which is 30x.
In November 2024, the company appointed Nitish Bajaj as the Group Managing Director. Nitish brings over 28 years of experience in consumer products and brand management. His previous roles include CEO of the Consumer Products Division at Piramal, Senior Vice President of Marketing at CEAT Tyres, and leadership roles with Reckitt Benckiser, Ranbaxy Global Consumer Healthcare, and Heinz India.
Aptech Ltd. is a leader in India’s specialized education sector since 1986, extending its reach across the globe. With a network of 800 centers, the company offers a diverse range of training programs, spanning IT, media, retail, aviation, beauty, finance, and even early childhood education. Aptech’s success stems from its ability to cater to both individual students and corporate clients, effectively bridging the skills gap through its comprehensive training solutions
With a market cap of Rs 729 cr, Aptech Ltd is almost debt free and maintains a healthy dividend payout of 56%.
Rekha Jhunjhunwala has been holding a stake in the company at least since December 2015 (since records were available), per Trendlyne.com. She currently he holds 21% stake in Aptech.
Aptech’s sales have seen a compound growth of 16% from Rs 207 cr in FY19 to Rs 436 cr in FY24.
And between April and December 2024, the company logged in sales of Rs 341 cr already.
EBITDA grew form Rs 29 cr in FY19 to Rs 42 cr in FY24, logging 8% compound growth. And for the period of the 3 quarters between April and December 2024, it has recorded Rs 21.22 cr in operating profits.
The net profit also grew at a compound rate of 13% between FY19 and FY24, as it jumped form Rs 18 cr to Rs 29 cr in that period.
Aptech’s share price has seen a good change in the last 5 years as it jumped from Rs 55 in March 2020 to Rs 126 as on closing for 21st March 2025. That is a jump of 130%.
The current share price is however trading a discounted one to its 52-week high and all-time high price of Rs 265 and Rs 423 respectively.
The company’s share is trading at a current PE of 38x, which is close to the industry median of 37x. The 10-year median PE for Aptech is however 34x and the industry median for the same period is 21x.
As per the company’s last investor presentation, some big changes have happened at the management level with an aim to grow business. Aptech has invested in a separate academy to teach Virtual Production techniques and tech (requiring high-end hardware) to position Aptech at the forefront of tech adoption.
The company also launched a new tech platform ‘Almanation’ to leverage and engage the large alumni community across brands. Arena and MAAC sites also launched in FY24.
Small Cap Goldmines or Graves?
The market knows the Jhunjhunwala’s for their strategy and knack for picking profitable companies and laughing their way to the bank. So, when Rekha decides to hold two less known small cap companies like ATFL and Aptech for over a decade, there is definitely something that the common investor cannot see.
Especially since the financials of ATFL could very well throw most investors off their track. But Rekha holds both the stocks steadily demonstrating trust in them.
Will these companies be the next big stories or the next multibagger adding more zeroes to Rekha’s bank balance? Or is it a bubble waiting to burst?
That is something only time will tell but given that Rekha is not willing to sell them for over a decade warrants a place for these stocks in your watchlist to keep a close eye on.
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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