Re-entry of the bets
One of the Warren Buffetts of India, Mukul Agrawal, is a very well-known and super investor of India. Followed by investors across the board, he currently holds 72 stocks worth over Rs 5,946 cr. He recently re-entered into 2 stocks which he had sold in the last year, raising a lot of questions in the investor circles.
One of these stocks is an integrated logistics solution provider while the other is a manufacturer of wood coatings and other decorative paints. Both these small cap stocks have two things in common. Both were sold off by Agrawal and re-added to his portfolio as per the filings for the quarter ending December and both have seen a steep decline in share price in the last 4 months.
The big question now is, is Agrawal betting in a big turnaround for these stocks in FY27? Let us try to dissect the financials of the companies and try to find out.
Allcargo logistics ltd – 52-week low price, lifetime high yield
Incorporated in 1993, Allcargo Logistics provides integrated logistics solutions and offers specialized logistics services across multimodal transport operations, inland container depots, container freight station operations, contract logistics operations and project and engineering solutions.
With a current market cap of Rs 1,147 cr, the company is India’s largest integrated logistics solutions provider in the private sector. The Co is the World’s No 1 LCL (Less than Container Load) Consolidator in Express Logistics Industry and is India’s No 1 CFS Operator.
Ace investor Mukul Agrawal held a stake in the company since September 2021 as per Trendlyne. The stake was 1% at the end of December 2024, which is when he sold it. However, as per the filings for the quarter ending December 2025, he has re-entered the stock with a 2.9% stake which is now worth Rs 33cr.
One of the first things any investor would notice when they look at the company is its dividend yield of a staggering 14%. Now this is an outlier and is largely a result of the significant drop in share price following the company’s restructuring and demerger activities, as well as a 3:1 bonus issue that adjusted the historical price levels.
Which brings us to the question, why did Agrawal enter the stock again around a time when the stock is browbeaten?
Let us for look at the financials of the company (consolidated) to try and get a top view of the situation. Now, we must look at the financials keeping in mind the company’s recent demerger.
The demerger dynamics – Why bottom line looks thin
The company’s sales have seen a compounded jump of 17% from Rs 7,346 cr in FY20 to Rs 16,022 cr in FY25. And for the 3 quarters of FY26 ending in December 2025 (Q3FY26), the sales recorded by the company is Rs 1,544 cr.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) saw an upward trend before coming back to near the FY20 figures.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 515 | 643 | 1,281 | 1,140 | 471 | 530 |
The net profit saw a similar pattern and seemed like the driver of the stocks fall to its current near 52-week low.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profit/Rs Cr | 234 | 95 | 965 | 653 | 140 | 49 |
And for the quarters between April and December 2025, the net profits logged by the company are only Rs 3 cr.
The share price of Allcargo Logistics Ltd was Rs 9 in March 2021 which went on to hit a high of Rs 34 in January 2024. And as on 16th of March 2026, the price was around Rs 8.
Just in the last 6 months, the price has corrected by 50% as it fell from around Rs 16 to the current price of Rs 8, thanks to the company’s dismal profits. However, even as the company logged losses in December 2025, Agrawal decided to get back in around the same time.
The company’s share is trading at a current PE of 82x while the industry median when compared to peers is 21x. Which means that the market is placing a massive premium on the stock, likely due to expectations of an aggressive earnings recovery following its recent demerger.
Allcargo presents a classic financial paradox. A browbeaten stock price paired with a bloated 82x P/E that screams overvaluation. However, Mukul Agrawal’s aggressive 2.9% re-entry suggests he isn’t looking at the current dismal profit, but rather at the lean, post-demerger machine beneath.
By betting on the World’s No. 1 LCL consolidator at its cyclical floor, Agrawal is possibly positioning for a massive mean reversion play. The market’s current premium isn’t for what Allcargo is today, a struggling entity, but for the operational leverage it could unlock in FY27.
Sirca Paints India Ltd – National scale play with the wembley acquisition
Incorporated in 2006, Sirca Paints India Ltd is engaged in the business of manufacturing, selling and export of wood coatings and other decorative paints under the brand ‘Sirca’.
With a market cap of Rs 2,319 cr, the company is amongst the top 3 premium wood coatings brands in India and a market leader in North India.
Mukul Agarwal’s wife, Asha Mukul Agrawal, held a stake in the company since September 2018, which was around 2.75% at the end of the quarter for June 2025. As per trendlyne and screener both, this holding went below 1% for the quarter ending September 2025 hinting at a partial or complete exit.
However, as per the exchange filings for the quarter ending December 2025, she re-entered the stock with a 2.5% stake which is now worth Rs 59 cr.
Let us dive into the financials of the company, to see what could have prompted the re-entry.
Driven by operational sturdiness
The company’s sales have grown at a compound rate of 23% from Rs 134 cr in FY20 to Rs 372 cr in FY25. And for the 3 quarters of FY26 ending December 2025 (Q3FY26), sales of Rs 358 cr have been recorded already.
In case of the EBITDA, the company logged a compound growth of 17% as the figure jumped from Rs 31 cr in FY20 to Rs 68 cr in FY25. And at the end of Q3FY26, the EBITDA logged was Rs 73 cr already, hinting at a solid end to FY26.
The net profits logged a compound growth of 15% in the last 5 years and logged a drop in the figure for FY25.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit/Rs Cr | 25 | 17 | 28 | 46 | 51 | 49 |
The share price of Sirca Paints India Ltd was around Rs 160 in March 2021 and as on 16th March 2026, it was Rs 408, which is a 155% jump in the last 5 years.
However, the stock price has corrected by almost 25% in the last few months as it fell from around Rs 540 to its current price of Rs 408. This could be attributed to 14% sequential (QoQ) revenue dip in Q3FY26, and the seasonal construction bans in Delhi-NCR.
The company’s share is trading at a PE of 38x while the current industry median is 32x.
In March 2025, Sirca Paints acquired the entire business under the Wembley brand from Wembley Paints & Chemicals and Indo Wembley Paints Pvt. Ltd. Wembley is a legacy brand with over 60 years of market presence and recognition in the industry.
Sirca Paints is in what we can call the valuation sweet spot. The 25% price correction has pruned the froth without damaging the underlying growth narrative. Add to that the vote of confidence the stock has got from Agrawal, which probably hints at his trust on the company to outrun temporary headwinds and bounce back.
Will Agrawal’s FY27 bets pay off?
Investors like Mukul Agrawal rarely follow the crowd. His decision to jump back into Allcargo Logistics and Sirca Paints India suggests he is looking past today’s balance sheets to find a different story for FY27.
While Allcargo, looks like a lean machine, the post demerger complexities and a 50% share price correction in just six months, the company is finally shedding its legacy weight. Meanwhile, Sirca Paints is playing a game of scale, by swallowing legacy brands like Wembley. It is moving from a niche North Indian player to a national mass-market contender.
Both stocks currently suffer from a valuation paradox, where they look expensive on paper but are in all possibility priced for a turnaround. Agrawal seems to be betting that by the time the market recognizes this, the current discount will be long gone. Is this a masterclass in buying the dip, or is the second coming arriving a season too early? Only the next few quarters of execution will tell if these bets have more than just a fresh coat of paint.
Add theses stocks to a watchlist and keep an eye on them to find out.
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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