When two of India’s Warren Buffetts, Mukul Agarwal and Sunil Singhania place their bets on the same companies, it is more than just a coincidence—it is a signal. These market masters known for their sharp instincts and enviable track records, rarely align in this way given different investment philosophies and strategies. Which is why these 2 stocks have caught the fancy of many.
Agarwal has long been celebrated for his ability to identify undervalued gems, while Singhania’s Abakkus is recognized for its focused, high-conviction investment approach.
So, are these stocks hidden diamonds ready to shine, or just bold gambles poised to redefine the game? Let us dive into the details of the two companies to see if we can find the reason of this rare convergence.
Sarda Energy & Minerals Ltd (SEML)
Incorporated in 1973, Sarda Energy & Minerals Limited (Formerly known as Raipur Alloys & Steel Ltd) has integrated steel manufacturing unit with facilities, ferro alloys backed by captive thermal power plant and is presently, engaged in metal, mining, and power sector.
With a market cap of Rs 17,406 cr, SEML is an integrated steel producer of long steel products including iron pellets, sponge iron, billets, wire rods, etc.
Mukul Agarwal has held a stake in the company from March 2022 (as per data on trendlyne.com). Sunil Singhania’s Abakkus also has held a stake in the company since March 2021.
As for the quarter ending December 2024, Agarwal holds 1.19% stake and Abakkus holds 1.73% stake in SEML.
The company’s sales have grown at a compound rate of 11% from Rs 2,324 cr in FY19 to Rs 3,868 cr in FY24. For the 3 quarters of 9MFY25, SEML has logged in sales of Rs 3,404 cr already, hinting at a good fiscal year.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for SEML has grown from Rs 482 cr in FY19 t 798 cr in FY24, logging in a compounded growth of 11%. And for 9MFY25, the company has logged in EBITDA of Rs 967 cr.
Looking at net profits, SEML has seen a compound growth of 21% in 5 years, from Rs 207 cr in FY19 to Rs 524 cr in FY24. Between April and December 2024, the net profits are already at Rs 601 cr.
The numbers look good enough for investors like Mukul Agarwal and Sunil Singhania to place big bets on these companies.
No wonder the share prices have been a ride to watch of its investors.
The share price of SEML was Rs 11 in March 2020 and is currently Rs 494 as on 27th of March 2025. That is a jump of about 4,400% in just 5 years.
The company’s share is trading at a modest current PE of 26x while the industry median when compared to peers is 24x. The 10-year median PE for SEML is 6x while that of the industry is 20x.
The company is focused on diversifying its revenue streams, particularly through power and mining operations to reduce dependence on the cyclicality of the metal industry.
The last annual report of the company says “With a remarkable 2X growth over the last four years, we are now on the brink of a transformative leap forward. Our ambitious plans in the energy and minerals sectors should result in rapid, substantial growth, supported by a strong balance sheet and robust cash flows. This quantum leap will redefine our business, offering unparalleled value and growth potential for our stakeholders.”
J Kumar Infraprojects Ltd (JKIL)
J Kumar Infraprojects Limited is engaged in the business of execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc
With a market cap of Rs 4,882 cr, JKIL is amongst the top 5 EPC playerseligible to undertake underground metro projects and amongst few companies qualified to undertake elevated & underground metro projects.
Mukul Agarwal has held a stake in the company since June 2018 (as per data on trendlyne.com) and Sunil Singhania’s Abakkus also has held a stake in the company since June 2022.
As for the quarter ending December 2024, Agarwal holds 2.61% stake and Abakkus holds 2.51% stake in JKIL.
As for the financials, the company’s sales grew from Rs 2,787 cr in FY19 to Rs 4,879 cr in FY24 which is a compounded growth of 12%. And for 9MFY25, the company has already logged in sales of Rs 4,061 cr.
EBITDA has also grown at a compounded rate of 10% from Rs 436 cr in FY19 to Rs 704 cr in FY24. And for 9MFY25, JKIL has already logged in Rs 591 cr in as EBITDA.
The net profit is has grown from Rs 177cr in FY19 to Rs 329 cr in FY24, which is a 13% compounded growth. For 9MFY25, the profit is at Rs 276 cr.
JKIL’s share price was around Rs 80 in March 2020 which has jumped by 706% to its current price of 645 (as on 27th March 2025).
Even at 645, the share is trading at a discount of slightly over 30% on its all-time high price of Rs 937.
The company’s share is trading at a current PE of 13x while the industry median when compared to peers is 20x. The 10-year median PE for the company is 13x and the industry median for the same period is 18x.
Double whammy?
The rare alignment between the two Warren Buffetts of India has placed Sarda Energy & Minerals Ltd and J Kumar Infraprojects Ltd in the spotlight. These companies now deserve attention, because Mukul Agarwal and Sunil Singhania’s Abakkus have both invested in them.
The large increases in stock value, like SEML’s 4,400% jump and JKIL’s 706% rise, show that these investments are not just random picks. They show a careful mix of ambition and chance. However, a big question is still there: has the peak been breached, or there is still scope for booking more profits?
Are these the next big names in the market, or is this a risky bet? SEML is growing in energy and mining, and JKIL is strong in infrastructure. This sets the stage for a potential big story. Will these stocks change how wealth is made, or will surprises change the story?
Only time will tell, but keeping a vigilant eye on such companies has never hurt anyone.
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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