One of the most prominent names in our list of the Warren Buffetts of India is Sunil Singhania, founder of Abakkus Funds. Singhania is very well known for his strategic focus on midcap and smallcap stocks across industries. His speciality is picking fairly valued or undervalued stocks that have strong fundamentals.
Currently, Singhania holds 26 stocks worth Rs 2,575 cr (across his personal and Abakkus holdings). But two of the stocks he picked under Abakkus just in the last year are grabbing the attention of smart investors, who are now building their watchlist for 2026.
What has caught the keen eye of these investors is that both these stocks have what we can call polar opposite performance when it comes to profits. But given Singhania’s interest in the stocks, the stocks do merit a deep dive.
#1 Himatsingka Seide Ltd: Textile Specialist with Flailing Profits
Incorporated in 1985, Himatsingka Seide Ltd is engaged in manufacturing of home textile products, mainly in bedding, drapery and upholstery products, made of cotton, silk, and blends.
With a market cap of Rs 1,489 cr, the company produces home textiles for over 12 global brands, licensed and owned. It owns exclusive license rights of global iconic brands like Calvin Klein, Tommy Hilfiger, Kate Spade, Royal Velvet, Barbara Berry and Waverly.
Singhania bought a 6.8% stake in the company as per the filings for the quarter ending December 2024, which is today worth Rs 101 cr, split between Abakkus Emerging Opportunities Fund-1, Abakkus Diversified Alpha Fund-2 and Abakkus Diversified Alpha Fund.
This pick of Singhania is likely to raise questions amongst investors, given the growth the company has logged despite being associated with some of the biggest brands in the world.
The sales of the company have grown at a compounded rate of just 3% between FY20 and FY25, and for H1FY26 the sales are Rs 1,287 cr.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales/Rs Cr | 2,358 | 2,258 | 3,184 | 2,678 | 2,841 | 2,778 |
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) has also recorded a bumpy ride and logged a compound growth of just 4% in the last 5 years. For H1FY26 the EBITDA recorded is Rs 220 cr
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 418 | 289 | 532 | 271 | 602 | 514 |
When it comes to net profits, the company has shown nothing short of a roller coaster ride in the last 5 years, contracting on a compounded basis. In H1FY26, profits of Rs 53 cr have been recorded.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profits/Rs Cr | 13 | -53 | 141 | -64 | 113 | 76 |
The share price of Himatsingka Seide Ltd was around Rs 120 in December 2020 and as of 4th December it was Rs 118, which is flat growth in the last 5 years. The chart below shows how the stock prices have also been volatile.
The company’s stock is trading at a PE of 9x, while the industry median is just 20x. The 10-Year median PE for the company is 15x which is same as the the industry median for the same period.
The company has entered into a licensing agreement with The Walt Disney Company to manufacture and distribute a broad range of home textile products inspired by archives and characters from all its franchises including Disney, Marvel, Pixar and Lucas to increase its presence in the European region.
The management said in the recent investor presentation that most recent decline in financials was due to the tariff overhang which will ease in the future. Singhania seems to probably agree with the growth plans as he continues to hold the stock.
#2 Denta Water & Infra Solutions Ltd: The Big Turnaround Story of 200% Profit Growth
Incorporated in 2016, Denta Water and Infra Solutions Ltd is in the business of GWR (Water Management), Irrigation, Operations & Management pertaining to water projects.
With a market cap of Rs 964 cr, the company provides water and infrastructure solutions and is engaged in design, installation and commissioning of water management infrastructure projects with expertise in ground water recharging projects. In addition, company undertakes construction projects in railways and highways.
Singhania bought 1.3% stake in the company as per the filings for the quarter ending March 2025, which is today worth Rs 12.2 cr, under the Abakkus Diversified Alpha Fund-2.
The current ROCE (Return on Capital Employed) of the company is 25%, which is amongst the highest when compared to peers from the same industry.
The stand-alone financials of Denta Water show how this pick of Singhania is what we can call a polar opposite compared to the other pick, Himatsingka Seide Ltd.
The sales of the company have grown at a compounded rate of 186% from Rs 1 cr in FY20 to Rs 203 cr in FY25. For H1FY26, the sales logged were Rs 141 cr.
Looking at the EBITDA, the company did not make any operating profits in FY20 but recorded Rs 68 cr in FY25, logging a compound growth of over 450%. And for H1FY26, EBITDA of Rs 46 cr have been logged.
As for net profits, the company wasn’t making any till FY20, but staged a turnaround and closed FY25 at Rs 53 cr. For H1FY26, profits of Rs 38 cr were already recorded.
The share price of Denta Water & Infra Solutions Ltd at listing in January 2025 was around Rs 340 and as on 4th December 2025 it was Rs 360. The share price did however hit its all-time high price of Rs 480 around October 2025.
The company’s share is trading at a PE of 15x while the industry median is 18x. While it would be too soon to look at the long-term PE of the company, the industry median for the last decade is 20x.
According to the investor presentation from November 2025, the current order book of the company is around Rs 734 cr. Add to this that the management on the earnings call stated, “We will bag an order to the tune of Rs. 800 to Rs. 1000 crores, which we will achieve by the end of Q3 or Q4 of this year.”
The management aims to achieve revenues of over Rs 300 cr in FY26, Rs 375-400 cr in FY27 and Rs 500- 525 cr in FY28.
Watchlist 2026 Worthy Opposites?
We dug into the only 2 stocks Singhania added to his holdings in the last year, Himatsingka Seide Ltd and Denta Water & Infra Solutions Ltd, to see if these two opposites are worthy of being a part of the Watchlist for 2026.
Both stocks have completely opposite trajectories and highlight Singhania’s range in picking stocks based on research as opposed to a hunch. While Denta Water has staged nothing short of a turnaround, Himatsingka has seen a volatile last few years when it comes to core financials, especially profits.
But both have 2 things in common, management conviction of a stronger future and backing by Sunil Singhania. It will be fascinating to watch the mystery around these Singhania picks unfold in the coming months. For now, it would be worth a shot to add these stocks to your 2026 watchlist.
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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