In the Indian markets, where momentum is often mistaken for merit, the ultimate test of an investment strategy is not the speed of its rise, but the resilience of its holders during a protracted decline. For Radhakishan Damani and the estate of the late Rakesh Jhunjhunwala, two names that serve as the twin pillars of Indian value investing, that resilience is currently being tested by two stocks.
While the broader indices play with solid highs, these two specific stock holdings have corrected by over 55% from their all-time high prices. If it was the portfolio of an average investor, it would have typically triggered a stop-loss or could have led to panic-selling. But Damani and Jhunjhunwala, till date, have remained noticeably static, refusing to let go of these beaten down stocks.
And such conviction is definitely not something based on sentimentality; rather, it hints towards the high level of convictions these Warren Buffetts of India have in these stocks.
Let us look at these stocks and try to find out why the big bulls sit tight in their holdings.
Concord Biotech: Why the Jhunjhunwala Estate is Defending a 24% Stake
Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company and manufacturer of fermentation-based APIs across immunosuppressants and oncology.
With a market cap of Rs 11,870 cr as on 25th February 2026, the company is a pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs) and formulations. The company is engaged in development and manufacturing of niche fermentation-based APIs and finished dosage formulations for domestic and international markets.
The estate of late Rakesh Jhunjhunwala bought a stake in the company as per the filing for the quarter ending September 2023. As per the filings for the quarter ending December 2025, this holding is currently 24% worth Rs 2,854 cr, making it the 4th largest holding in the portfolio.
The company was listed in August 2023 at a share price of around Rs 940 and climbed to log its all-time high of Rs 2,664 a year later in September 2024. However, since then, the price has corrected by over 55% to its current price of Rs 1,135 as on 25th February 2026.
Let us look at the financials of the company to see if we can find the reason for this sharp decline.
The sales of the company jumped from Rs 512 cr in FY20 to Rs 1,200 in FY25, logging a compound growth of 19%. For the first 3 quarters of FY26 (April to December 2025), the sales recorded were Rs 729 cr, which is a drop from the figure of Rs 770 cr for the same three quarters in the previous year.
The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of the company went from Rs 205 cr in FY20 to Rs 506 cr in FY25, logging a 5-year compound growth of 20%. And for the first 3 quarters of FY26, the company has logged EBITDA of Rs 247 cr, once again a drop from Rs 313 cr for the same quarters in the previous year.
Regarding Net profits, the company recorded a 19% compounded growth from Rs 169 cr in FY20 to Rs 372 cr in FY25. For the first 3 quarters of FY26, the company has recorded profits of Rs 171 cr. This is also a drop from the figure of Rs 232 cr of the same quarters in previous year.
This contraction in the core financials is one of the major reasons for the correction in the stock price. Plus, the commercialization of the new Valthera injectable facility and the setup of the US subsidiary (Stellon Biotech) involved high fixed starting-up costs. These expenses hit the bottom line of Concord before the revenue from these units could scale up, creating a margin drag.
Looking at the valuation, the company’s share is trading at a current PE of 37x, and the industry median is 28x.
But there are a couple of things that could have held the attention of the Jhunjhunwala’s in the stock. Like the fact that the company has recorded strong capital efficiency.
The company has a current ROCE (Return on Capital Employed) of 28% while the industry median is 15%. Which means for every Rs 100 the company uses as capital, it generates a profit of Rs 28 on it, while its industry peers average only around Rs 15.
Plus, Concord is virtually debt free, so it does not have to worry about hefty interest payments, giving it freedom to use the profits to grow the business or give back to investors by means of dividend, which it is doing. The current dividend yield is 0.95%, one of the highest in the industry that averages around 0.11%.
BF Utilities: Why Damani Ignores the 4.7x Leverage Red Flag
Incorporated in 2000, BF Utilities Ltd is engaged in the generation of electricity through wind mills and Infrastructure activities.
With a market cap of Rs 1,845 cr as on 25th February 2026, the company primarily generates wind power which is then utilised by Bharat Forge Ltd. at its plant in Pune and is also involved in the infrastructure business.
Radhakishan Damani bought a stake in the company in per the filings for the quarter ending June 2020, and as per the filings for the quarter ending December 2025, he held 1% worth Rs 19 cr.
The share price of BF Utilities Ltd was around Rs 275 in February 2021 and as on 25th of February 2026 it was Rs 490. This current price is however over an 80% correction from its all-time high of Rs 2,628. In fact, the stock has corrected by over 43% just in the last 6 months.
Looking at the financials, sales of the company jumped from Rs 535 cr in FY20 to Rs 837 in FY25, logging a compound growth of 9 %. For the first 3 quarters of FY26 (April to December 2025), the sales recorded were Rs 628 cr, which is a drop from the figure of Rs 727 cr for the same three quarters in the previous year.
The EBITDA went from Rs 297 cr in FY20 to Rs 619 cr in FY25, logging a 5-year compound growth of 16%. And for the first 3 quarters of FY26, the company has recorded EBITDA of Rs 472 cr, a jump from Rs 427 cr for the same quarters in the previous year.
As for the Net profits, the company recorded a 39% compounded growth from Rs 27 cr in FY20 to Rs 338 cr in FY25. For the first 3 quarters of FY26, the company has recorded profits of Rs 254 cr. A small jump from the figure of Rs 224 cr of the same quarters in previous year.
So, while the sales saw a drop in the in the quarters of April to December (as compared to same quarters previous year), the EBITDA and Net profits saw small jumps. But the stock price still saw a correction of over 40% in the last 6 months.
This correction is a possible repricing of contingent liability risk. Markets are aggressively discounting a transparency deficit, specifically the unprovisioned Rs 500 cr arbitration award hanging over its subsidiary, NECE. With sales sliding in the last year and the stock trading at a bloated 9.3x Price-to-Book, the growth premium has probably evaporated.
Also, the company has a current debt-to-equity of 4.7 which means for every Rs 1 of its own money, the company has borrowed Rs 4.70. This creates a huge interest burden that eats into net profits. High debt makes the stock very risky if interest rates rise or sales slowdown and leaves zero room for error, as lenders must be paid before shareholders see a single rupee.
The stock is trading at a PE of 13x, and the current industry median is 21x, which means the market is discounting it due to the above reasons. However, Damani refuses to sell this stock, which hints towards him having some insight that the average investor probably does not.
One silver lining that could have kept Damani’s interest is probably the company’s ROCE which is currently 30% while the industry median is 9%. Even the 10-year ROCE for BF Utilities of 18% while the industry median for the same period sits at 7%.
As per the recent updates in the company’s filings, it has made a SEBI settlement of over Rs 3.6 cr in February 2026, for alleged violations of listing norms. Despite an array of legal troubles, the management remains defensive on disputes, asserting strong legal positions and no provisions needed, even after auditor pushback.
The Price of Conviction: Vision vs. Volatility
The divergence between a stock’s price and its fundamental value is where the gains of Damani and the late Jhunjhunwala were forged. While retail sentiment often evaporates at a 20% drawdown, the conviction of investors like Damani and Jhunjhunwala is backed by a deep understanding of capital efficiency. For these giants, a 55% correction isn’t a signal to exit, but a stress test for the original investment strategy.
Concord Biotech’s high fixed costs and BF Utilities’ legal troubles represent the noise that the market is currently pricing in with a heavy hand. However, when one looks at the strong capital efficiency, it points at why the big bulls remain unmoved. They are betting on the eventual normalization of margins and the clearing of contingent clouds, valuing operational excellence over temporary market whips.
If you are watching from the sidelines, you must decide if you possess the same stomach for volatility as Damani and Jhunjhunwala. For now, adding these stocks to a watchlist and keeping an eye on them seems like a good plan.
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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