Not Damani, Not Jhunjhunwala: This ‘silent Buffett’ is doubling down on 2 beaten-down stocks

Two of his holdings are currently trading at a staggering 30% to 46% discount from their all-time highs. While a decline of this size often triggers panic selling among retail investors, the ace investor continues to hold these stocks (as per the last available reported numbers). This divergence between price action and investor conviction raises a critical question.

Are these stocks fundamentally broken, or is this a rare turnaround bet by Bhanshali?

Let us look at the two stocks to try and find out.

Gujarat Fluorochemicals: The Specialty Chemical Giant’s Pivot to Green Energy

Incorporated in 2018, Gujarat Fluorochemicals Limited, earlier known as Inox Fluorochemicals Limited, is a part of the INOX Group of Companies and has been demerged from GFL Ltd, into a separate legal entity.

With a market cap of Rs 35,502 cr, the company is one of the leading producers of Fluoro-polymers, Fluoro-specialities, Chemicals and Refrigerants in India. It is one of the top five global players in the fluoropolymers market with exports to Europe, Americas, Japan and Asia.

Akash Bhanshali has held a stake in the company since the filings for the quarter ending March 2022 (5 years). Currently, he holds 4.8% stake in the company worth Rs 1,687 cr.

Gujarat Fluorochemicals is pivoting from a pure-play chemical manufacturer into a front runner of India’s green energy transition. By leveraging its dominance in fluoropolymers, the company provides the essential backbone materials, specifically PVDF, required for high-efficiency solar backsheets and battery binders.

This strategy is reinforced by its parent group’s massive Rs 1,500 crore investment into solar cell and module manufacturing, aiming for 5 GW of capacity by 2026. By integrating chemical expertise with downstream solar production and battery storage materials, the company is effectively building a closed-loop ecosystem. This vertical integration allows them to capture value at every stage, from raw chemical processing to the final utility-scale solar farm, positioning the stock as a specialized proxy for India’s renewable energy ambitions.

But are financials in a position to back these ambitious plans? Let us try and find out.

The Financial Litmus Test: Analyzing the Volatile Profit Cycle

The sales of the company have grown at a compounded rate of 13% from Rs 2,606 cr in FY20 to Rs 4,737 cr in FY25. For the 3 quarters of FY26, ending in December 2025, the company has logged sales of Rs 3,627 cr.

EBITDA (earnings before interest, taxes, depreciation, and amortization) went from Rs 439 cr to Rs 1,100 cr in the same period, which is a compounded growth of about 20%. And between April and December 2025, EBITDA of Rs 983 cr has been logged by the company.

The net profits is where the ground seems a bit shaky as the company has logged what can be called a roller coaster ride in the last 5 years.

FY	FY20	FY21	FY22	FY23	FY24	FY25
Net Profits/Rs Cr	189	-222	776	1,323	435	546

For the first three quarters of FY26 ending in December 2026, the company has logged profits of Rs 465 cr.

So, while the company did record a big turnaround from losses in FY21 to the high of Rs 1,323 cr in FY23, it saw a huge drop again in FY24. This huge drop affected the share prices.

The share price of Gujarat Fluorochemicals Ltd was around Rs 580 in March 2021 and as on 25^th of March 2026, it was Rs 3,232, which is over a 450% jump.

However, in the last few months, the stock prices have seen a big correction.

34% Pullback: Temporary Headwinds or Structural Rerating?

At the current prices, the stock is trading at a discount of over 34% from its all-time high price of Rs 4,881.

Despite a strong position in its field, the company’s recent profits were hurt by falling margins in the refrigerant segment, caused by global quota cuts and seasonal weakness. High input costs and the threat of U.S. tariffs further hurt investor confidence, causing the stock’s high price to fall as earnings growth missed forecasts.

Additionally, recent promoter stake sales and wider market swings in India have added to the selling pressure. Ultimately, this price drop brings the company’s value back in line with its current profit challenges and the slower start of its new green energy projects.

Regarding the valuation, the company’s stock is trading at a PE of a 53x, while the industry median is 25x. The 10-Year median PE for the company is 47x, and the industry median for the same period is 29x.

One 97 Communications (Paytm): A Fintech Leader at a 46% Discount

Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants.

With a market cap of Rs 67,298 cr, One97 owns and operates India’s leading mobile payments and financial services distribution brand Paytm.

Akash Bhanshali bought a stake in the company as per the filing for the quarter ending June 2024. He currently holds a 1.24% stake worth Rs 835 cr. The stake came at the time when RBI had restricted all services of Paytm Payments Bank Ltd (PPBL), a 39% associate of the company, permitting only the withdrawal of the existing customer balances.

The company is fighting to reinvent itself after the regulator effectively shut down its banking arm. To keep its app alive, the firm had to move its payment systems to outside partner banks. This move saved its massive user base but stripped away the high-margin edge it had when it owned the bank.

Management is now cutting jobs and selling off non-core assets to raise cash and focus on its main app. The business model has shifted toward high-yield services like loans and insurance instead of just handling low-fee payments. While the road to profit remains steep, the company is betting that a leaner structure and new bank partnerships will finally fix its bottom line.

But has all this helped in making the financials attractive for retail investors? Let us find out.

Post-Regulatory Pivot: Can Paytm Sustain its Path to Profitability?

The company’s sales have witnessed a bumpy ride in the last 5-years, with a big drop recorded in FY25. However, for the 3 quarters of FY26 ending in December 2025, sales of Rs 6,173 cr have been logged, which means if things stay on track, FY26 could end up better than FY25 in terms of sales.

FY	FY20	FY21	FY22	FY23	FY24	FY25
Sales (Rs Cr)	3,279	2,801	4,974	7,990	9,978	6,900

EBITDA has been an issue with the company as it has recorded big operating losses in the last 10 years.

FY	FY20	FY21	FY22	FY23	FY24	FY25
EBITDA (Rs Cr)	-2,685	-1,838	-2,384	-1,644	-943	-1,506

However, things seem to be turning around as for the 3 quarters of FY26, the company has finally logged operating profits of Rs 367 cr, after 10 years.

Coming to the net profits, the company has once again not seen any profits in the last decade. In the first 3 quarters of FY26 ending in December 2025, profits of Rs 357 cr have been logged.

FY	FY20	FY21	FY22	FY23	FY24	FY25
Net Profit (Rs Cr)	-2,942	-1,701	-2,396	-1,776	-1,422	-663

But for the 3 quarters of FY26, the company has finally recorded profits of close to Rs 370 cr after a decade.

The share price of One 97 Communications Ltd was around Rs 1,560 when listed in November 2021 and as on 25^th of March 2026 it was Rs 1,051, which is big drop.

The 46% Slide: Market Skepticism vs. Operational Recovery

At the current price of Rs 1.051, the stock is trading at a discount of about 46% from its all time high of Rs 1,961.

This decline is possibly because investors are questioning the long-term strength of the company’s recent financial figures. Although the company finally reported some positive numbers in the last 3 quarters after a decade, a large part of that came from cutting costs rather than fresh sales. The market is also worried that a key government subsidy, which currently boosts profits, might end soon.

Additionally, a large one-time loss in its gaming division due to new laws reminded traders of the high regulatory risks. For the first time, major investment funds have started reducing their stakes, and many small investors are exiting as well. These factors, combined with a high valuation, suggest that the market needs more proof of steady growth before the stock can climb again.

Having said that, the share is trading at a PE of 124x while the current industry average is 20x.

Multi-Year Wealth Opportunity or a Sophisticated Value Trap?

Following a silent super investor like Akash Bhanshali requires a stomach for volatility that most retail traders simply don’t possess. A drop of 34% or 46% would send any regular investor running to the sell button, but Bhanshali’s refusal to sell suggests he is looking far beyond the current market position. His strategy centers on the long-term growth of businesses that are currently in the middle of painful, but perhaps necessary, transformations.

In Gujarat Fluorochemicals, the bet is on a massive pivot toward India’s green energy future. While the market has focused on temporary margin pressure and global trade hurdles, Bhanshali seems to be eyeing the company’s critical role in the solar and battery supply chains.

Paytm presents an even bolder case. After a decade of losses and a bruising fight with regulators, the fintech pioneer has finally touching profitability. Whether this turnaround is sustainable or merely the result of aggressive cost-cutting remains the billion-rupee question for 2026.

The gap between these falling stock prices and Bhanshali’s steady conviction leaves a major question for the average investor. Are these deep discounts a rare entry point into the next decade’s giants, or a warning that even the best investors can be caught in a value trap? Add these stocks to a watchlist and keep an eye on them to find out.

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.