For novice investors who do not know what they are doing, the Indian stock market could be a very haunting experience.
Many ill-informed investors lose their hard-earned money every year.
But there are some investors who know how to ignore market noise and stand out. With their deep research and strategic investing, they prove time and again, why they are the Warren Buffetts of India.
Two of India’s most respected value investors or the Warren Buffetts of India known for their value investing finesse, just shook up the investor circles with their big sell offs. One of them is Radhakishan Damani, The Retail King of India and the other is Mukul Agrawal, the founder of Param Capital Group.
Smart investors must know about these stocks and why they lost favour from two of the most respected super investors of India.
Mangalam Organics: Operating leverage collapse
Incorporated in 1981, Mangalam Organics Ltd is a manufacturer of Camphor, Resin and Sodium Acetate.
With a market cap of Rs 429 cr, the company is the world’s largest manufacturer of Camphor and has clients like Asian Paints, Kansai, Berger, Pidilite, Henkel, Bostik, Dmart, Reliance, Spencer, Amazon and Bigbasket.
Damani bought a 2.2% stake in the company as per the filings for the quarter ending June 2020 which he held up until now. As per the exchange filings for the quarter ending December 2025, his stake has fallen below 1% meaning a partial or complete sell off.
Let us look at the financials of the company to see if we can find out the reason behind this sell off.
The camphor crisis: Why revenue growth wasn’t enough
The company’s sales grew from Rs 375 cr in FY20 to Rs 530 cr in FY25 which is a compounded growth of just 7%. And for H1FY26, sales of Rs 305 cr have been logged.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is one red flag staring investors in the face, with the company unable to sustain operating profits.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 86 | 128 | 91 | -3 | 39 | 59 |
For the quarter ending September 2025, the company logged EBITDA of just Rs 28 lakhs, which was a 98% decline from the previous quarters Rs 22 crores, signalling rapid erosion in operating profits.
Net profits also took a hit in the last few years. While FY25 was an improvement FY24, sustainable profits still do not look like something that will come by soon.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profit/Rs Cr | 48 | 85 | 54 | -27 | 4 | 13 |
For H1FY26, profits of Rs 15.5 cr have been logged already, hinting at a stronger FY26.
The share price of Mangalam Organics was Rs 435 in January 2021 which has jumped to Rs 506 as on 13th January 2026.
The company’s share is trading at a current PE of 16x while the industry median when compared to peers is 19x. The 10-year median PE for the company is again 16x and the industry median for the same period is 17x.
While the 7% sales growth is uninspiring, the reason for Damani’s exit is almost certainly the erosion of operating leverage. An operating profit collapse of 98% despite rising revenue, signals a broken operations mechanism. In the commoditized camphor market, Mangalam failed to pass on volatile raw material costs to consumers. For a strict value investor like Damani, a company that grows its top line while profits erode is a certain ‘No’.
Stanley Lifestyles Ltd – Agrawal’s valuation discipline play
Incorporated in 2007, Stanley Lifestyles Ltd manufactures and trades furniture and leather products.
With a market cap of Rs 1,101 cr, the company is a leading, vertically integrated, home-grown luxury and super-premium furniture brand in India that operates across the value chain – design, manufacturing, and retail.
Ace investor Mukul Agrawal had bought a 1.6% stake in the company as per the exchange filings for the quarter ending September 2024, which dropped to 1.23% at the quarter ending September 2025.
And the fresh filings for December 2025 reveal that Agrawal’s holding has now dropped below 1% meaning a partial or complete sell off.
Let’s dive into the financials of the company to try and find out the reason.
Stanley Lifestyles: When growth fails to justify the premium
The company’s sales grew from Rs 206 cr in FY20 to Rs 426 cr in FY25, which is a compounded growth of 16%. For H1FY26, the sales recorded are Rs 214 cr.
EBITDA grew from Rs 14 cr in FY20 to Rs 85 cr in FY25 logging in a compound growth of 44%, and for H1FY26, the EBITDA is Rs 47 cr.
The net profits grew at a compound rate of 30% from Rs 8 cr in FY20 to Rs 29 cr in FY25, and for H1FY26 the profits recorded are close to Rs 14 cr.
The share price of Stanley Lifestyles was around Rs 475 when it was listed in June 2024 and as on 13th December it was Rs 193, which is a 59% drop.
The share is trading at a PE of 34x, while the industry median is 32x. It will be too soon to look at the long-term PE for the company, but the 10-year median PE for the industry is 41x.
Mukul Agrawal’s exit appears to be a classic valuation discipline play.
While a 16% CAGR in sales is respectable, it fails to justify the premium multiples the stock commanded at his entry point.
With the luxury discretionary sector facing headwinds and consumer spending tightening, Stanley’s growth has not accelerated enough to support its rich valuation.
Agrawal likely determined that the “growth at any price” thesis was no longer reasonable, opting to cut exposure before further PE (Price-to-Earnings) contraction.
Strategic outlook: Watchlist vs. washout?
When investors like Radhakishan Damani and Mukul Agrawal sell stocks, the market takes keen interest in it. The two stocks we saw today, Mangalam Organics and Stanley Lifestyles, have different stories to tell when it comes to how much they made for Damani and Agrawal respectively before they decided to sell off.
While Mangalam has delivered shaky financials, its stock prices have logged growth in the last 5 years. Stanley Lifestyles on the other hand delivered some good financials, but its stock prices eroded in the last 2 years since its listing.
What should a smart investor who either holds these stocks in their portfolio, or was planning to add them to it, do now? Well, the best course of action right now would be to add these stocks to a watchlist and keep a close eye on them.
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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