The Abakkus Anchor: Why Singhania is Staying Put
Sunil Singhania has never been one for the frantic “buy-low, sell-high” strategy that defines much of the India Markets. While average investors squirm over every basis point move from the RBI, the founder of Abakkus Asset Manager seems to be operating on a much slower, more deliberate clock.
Two of his portfolio veterans have recently seen what can only be called a big decline, with prices drifting toward 52-week lows. To the casual observer, this is nothing short of a red flag. But not for Singhania probably. Even as the stock prices crumbled, Singhania has shown what it is to be a “Super Investor”, to whom the noise does not matter.
At a time when long-term often means the next fiscal quarter, Singhania’s decision to sit tight is a provocative reminder that wealth isn’t made in the buying or the selling, it’s made in the waiting.
Let us try and find out what is it in these two stocks that have kept Singhania interested in so long, even with big price corrections.
Mastek Ltd: Foraying into AI-led transformation
Established in 1982, Mastek Ltd is a provider of vertically focused enterprise technology solutions. Having maintained a presence in the IT industry for almost 4 decades, Mastek Ltd has evolved from an IT solutions provider to Digital transformation partner.
With a market cap of Rs 4,836 cr as on 2nd March 2026, the company’s offerings include business and technology services such as Application Development, Application Maintenance, Business Intelligence and Data Warehousing, Testing & Assurance, and Legacy Modernisation.
Sunil Singhania added this stock to Abakkus Growth Fund as per the filings for March 2019. As per the recent filings for the quarter ending December 2025, the holding is 2.8% worth Rs 134 cr.
The holding was 2.9% for the quarter ending September 2025, which means Singhania trimmed his stake, but has his skin in the game.
Let us look at the financials to see if we can find a reason for the correction in price and also Singhania’s conviction in the company.
Evaluating the fundamental-price disconnect
The sales of the company have logged a compounded growth of 26% from Rs 1,071 cr in FY20 to Rs 3,455 cr in FY25. For the 3 quarters of FY26 ending in December 2025, sales of Rs 2,761 cr were recorded.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) which was Rs 156 cr in FY20 jumped to Rs 546 cr in FY25, which is a compound growth of 29%. And for the 3 quarters ending December 2025, the EBITDA logged was Rs 429 cr.
The net profits of the company grew at a compounded rate of 25% from Rs 114 cr in FY20 to Rs 346 cr in FY25. And for the 3 quarters ending in December 2025, the profits logged were Rs 297 cr.
The share price of Mastek Ltd was around Rs 1,213 in March 2021 and as on 2nd March 2026 it was Rs 1,559, which is a 29% jump. However, the stock has corrected by 40% in the last 1 year and is now trading closer to its 52-week low of Rs 1,548.
This share price slide marks a sharp valuation correction as its growth story stalled. While operating margins have remained stagnant at 15-16%, failing to return to the 20% highs of previous years. This margin pressure, coupled with rising staff costs, prompted a significant exit by foreign funds (14% FII holding in June 2024 to 10.3% in December 2025 ending)
While a large new UK contract provides a floor, investors remain cautious about bottom-line growth. The current low price-to-earnings ratio reflects a market that is no longer willing to pay a premium for erratic earnings.
As for valuations, the company’s share is trading at a current PE of around 13x, and the industry median currently is 22x.
Mastek is strengthening its AI-led transformation capabilities through its ADOPT AI platform, focusing on customer experience improvement, business process automation, and tailored AI innovation including agentic systems and small language models. The company has built strong AI capabilities with 80+ AI assets, 100+ business use cases, and 3,600+ trained professionals, supported by partnerships with major technology providers.
Rupa & Company Ltd: Dividend King in a flat market
Incorporated in 1996, Rupa & Company Limited is engaged in the manufacture of knitted apparel, including hosiery, textile, leather and other apparel products.
With a market cap of Rs 1,072 cr the company offers a wide range of knitwear products, including innerwear, men’s wear, women’s wear, lingerie, kid’s wear, winter wear, athleisure wear, casual wear, and fashion wear.
Sunil Singhania added this stock to Abakkus Emerging Opportunities Fund as per the filings for the quarter ending December 2020. And per the exchange filings for the quarter ending December 2025, the holding is 4% worth Rs 43 cr.
The company has a current dividend yield of 2.3% while the industry median when compared to peers is a flat 0%. Which means for every Rs 100 invested in the company, the shareholder receives Rs 2.30 in annual dividend income, while competition struggles to give out any dividends.
The turnaround bet?
Let us look at the financials to see what apart from the high dividend yield that is keeping Singhania interested.
The sales of the company jumped from Rs 975 cr in FY20 to Rs 1,239 cr in FY25, recording a compound growth of 5%. For the 3 quarters of FY26 ending in December 2025, the sales recorded by the company were Rs 818 cr.
The EBITDA after a good couple of years started to decline in FY23.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 114 | 257 | 269 | 89 | 118 | 131 |
The net profits also followed a similar trajectory.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profits/Rs Cr | 62 | 175 | 192 | 54 | 70 | 83 |
The share price of Rupa & Company Ltd was around Rs 315 in March 2021 and as on 2nd March 2026it was Rs 135, which is a big decline. Infact, the stock has corrected about 36% just in the last 6 months.
The drop in the share price comes from a sharp decay in its core earnings and operational efficiency. If we look at the Quarter-on-Quarter performance, for the first 3 quarters of FY26, ending December 2025, the EBITDA logged was Rs 60 cr and Net profits were Rs 36 cr, both about 30% lower than the figures for the same 3 quarters in the preceding year.
Beyond the profit figures, a bloated cash conversion cycle of over 340 days and high debtor levels have raised red flags for institutional investors. As FII’s cut their stakes, the stock has hit a fresh 52-week low of Rs 133.
The company’s stock is trading at a PE of 16x, and the current industry median is 23x. The market now views the company as being trapped between rising costs and a weak ability to raise prices in a crowded field.
In the February 2026 investor presentation, the company’s director Vikash Agarwal said, “Looking ahead, our strategic priorities remain centered on strengthening the mid-premium portfolio, scaling high-growth categories such as Athleisure, optimizing channel mix, and driving efficiency-led margin improvement. With our established brands and extensive distribution network, we remain confident of navigating near-term headwinds while positioning the business for sustainable and profitable growth.”
The patience premium: Sunil Singhania’s long-term playbook
While investors and the markets in a broader sense treat a single fiscal quarter like an eternity, Sunil Singhania’s refusal to budge is classic Warren Buffett move. To the average trader, the sight of Mastek and Rupa & Company hovering near 52-week lows looks like a clear signal to exit. But the Singhania strategy has always been built on a different logic: that price is what you pay, while value is what you wait for.
By holding steady, Singhania is betting that Mastek’s pivot into AI-led transformation will eventually outrun its current margin pressure. Similarly, with Rupa, he is leaning on the dividend king to weather a brutal cash-flow storm. It is high stakes bet on the belief that business fundamentals eventually triumph over temporary market noise.
It will be a fascinating ride to watch how these two stocks fare in the short and long term. Add these stocks to a watchlist in case you don’t want to miss out on any big movements.
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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