Sunil Singhania is not a name that is unknown. He is an ace investor, a Warren Buffett of India who founded Abakkus Asset Management, quite widely known for his finesse in finding less known small and midcap stocks that many overlook but have strong chances to grow.
When an investor of his calibre and experience makes changes to his holdings, whether his individual or from his fund, it deserves attention and perspective. As a Warren Buffett of India, he has a wide following and investors from across the board look up to him.
He recently offloaded 2 stocks from his fund’s holdings, which has attracted attention from investors. These moves hint at a change in how Singhania views these businesses giving investors insights into his strategies. Do you own any of these stocks?
BirlaNU Ltd
BirlaNU or HIL, formerly known as Hyderabad Industrial Limited is a flagship company of the C.K.Birla group of Companies which was incorporated in1946. The company changed its name to “HIL Limited” in August 2012.
With a market cap of Rs 1,760 cr, the company is one of the leading companies in the building materials and construction industry with robust product pipeline and wide range.
BirlaNU manufactures asbestos FC sheets, coloured steel sheets, non-asbestos corrugated roofing sheets, new generation building products like autoclaved aerated concrete (AAC) blocks (light bricks) that are used for walls in building constructions and aerocon panels and boards that are used as partition in residential and commercial buildings.
Sunil Singhania’s Abakkus Asset Management held a stake in the company through Abakkus Emerging Opportunities Fund, which was a steady 3.21% since June 2023, dropped to 2.38% as of the quarter ending December 2024.
And as per the exchange filings made for the quarter ending March 2025, the holding has dropped below 1% indicating a substantial or complete exit.
The sales of the company grew at a compounded growth rate of 9% from Rs 2,169 cr in FY19 to Rs 3,375 in FY24. For the nine months ending December 2024, sales were Rs 2,686 cr.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped from Rs 244 cr in FY19 to Rs 125 cr in FY24. And for 9MFY25, EBITDA was Rs 26 cr.
Looking at the Net Profits, it too has seen a big drop from Rs 101 cr in FY19 to Rs 35 cr in FY24. And for the 9 months between April and December 2024, the company has logged in losses of Rs 7 cr.
The share price of BirlaNU was around Rs 829 in May 2020, which has now grown to Rs 2,361 as of the closing on 15th May 2025. This is a jump of 185% in 5 years.
The stock trades at a negative price-to-earnings (PE) ratio due to a series of losses, compared to an industry median of 37x. The 10-year median PE for BirlaNU however is 14x which is same as the industry median for the same period.
BirlaNU Ltd plans to invest $150 mn to reach $1 bn in revenue by 2028. The Investment will focus on expanding production, enhancing sustainability, and doubling AAC block capacity in Chennai to 400,000 cubic meters per year.
Uniparts India Ltd
Incorporated in 1994, Uniparts India Ltd provides engineering systems and solutions catering to international OEMs across the off-highway vehicle, agricultural machinery, and construction equipment sectors.
With a market cap of Rs 1,570 cr the company has a leading market share of 16.88% in the global 3PL tractor market and 5.92% in the worldwide PMP market in the construction, forestry, and mining (CFM) equipment segment.
Once again, Sunil Singhania’s Abakkus Asset Management held a stake in the company through Abakkus Emerging Opportunities Fund, which was a steady 2.2% since June 2023, and it dropped to 1.81% as of the quarter ending December 2024.
As per the exchange filings made for the quarter ending March 2025, the holding has dropped below 1% indicating a substantial or complete exit.
Let’s examine Uniparts India’s financials to try and gather the decision behind this sell off.
The sales of the company grew at a meagre compounded growth rate of 1% from Rs 1,061 cr in FY19 to Rs 1,140 in FY24. Between April and December 2024, recorded sales were Rs 710 cr.
EBITDA grew from Rs 138 cr in FY24 to Rs 201 cr in FY24. And for 9MFY25, EBITDA was Rs 111 cr.
As for the Net Profits, it went from Rs 70 cr in FY19 to Rs 125 cr in FY24. And for the 9 months between April and December 2024, the company has logged in profits of Rs 65 cr.
Uniparts India’s shares were listed in December 2022 at around Rs 570, and as of closing on 15th May 2025, the price was Rs 348, which is a drop of about 39% since listing.
The company’s stock is trading at a PE of 17x, while the industry median is 32x. The 10-year median PE for Uniparts India however is 16x which lower than the industry median of 23x for the same period.
The company is in the advanced stages of commencing operations in Mexico. It has secured a contract valued at approximately USD 6.5 million from a leading OEM customer for local supply in the region, with operations set to begin in Q4 FY26.
Uniparts India also aims to expand its focus to include tractors with over 70 HP, increase its market reach to additional countries, seek a larger wallet share, and drive growth through both organic and inorganic initiatives.
Stay put or move out?
Sunil Singhania’s exit from BirlaNU and Uniparts India underscores his disciplined investment philosophy, prioritizing value, and growth potential.
BirlaNU’s negative PE and declining profits may signal limited upside, while Uniparts India’s lacklustre stock performance could indicate challenges in its overall business. These moves suggest Singhania is repositioning his portfolio toward stocks with better risk-reward profiles.
Investors should tread carefully with these stocks. BirlaNU’s elevated valuation and margin issues make it a risky bet, while Uniparts India’s growth is hampered by its slipping share price.
For now, keeping a sharp eye on these stocks whether you own them or not seems like a clever 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.