Markets have tilted towards scale and visibility in recent years. Larger companies continue to attract a disproportionate share of institutional capital. They benefit from wider coverage. They also offer clearer earnings visibility. This has made them the default choice across sectors.
However, beneath this trend, a different pattern is beginning to emerge. Instead of chasing sector leaders, some portfolios are gradually moving one layer below. The focus is shifting towards companies that are smaller in size but operate in narrow and specialised segments. These businesses are not widely tracked. Yet they often hold strong positions within specific parts of the value chain.
Super Investor Mukul Agrawal’s portfolio reflects this shift in approach. The selection is not built around scale or market leadership. It is built around capability. The companies typically operate within larger industries but focus on areas that require precision, technical expertise, or domain depth. This includes segments such as specialised manufacturing, engineering services, and niche chemical applications.
This points to a clear theme of backing second-line specialists. At a time when markets are rewarding size and visibility, this approach stands apart. It suggests that competitive strength may increasingly come from depth within a niche. Not from broad market dominance. In this article, we take a closer look at this strategy and the companies that reflect this pattern within the portfolio.
#1 Neuland Laboratories: The CDMO Pivot Toward Complex Molecules
Neuland Laboratories is engaged in the manufacturing and selling of bulk drugs and caters to both domestic and international markets.
As of March 2026, Mukul Agarwal holds 3.1% stake of Neuland Laboratories. This is his shareholding pattern in Neuland Laboratories for the past eight quarters.
Mukul Agarwal Shareholding Pattern in Neuland Laboratories (June 2024 – March 2026)
| Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 |
| 3.1% | 3.1% | 3.1% | 3.1% | 3.1% | 3.1% | 3.1% | 3.1% |
Neuland Laboratories reported steady growth in the December quarter, supported by its core Contract Development and Manufacturing Organisation (CDMO) business. Total income for Q3FY26 stood at Rs 440 crore, up 10.6% year-on-year (YoY). Profit after tax came in at Rs 41 crore, lower than Rs 102 crore in the same period last year, mainly due to product mix and absence of certain high-margin shipments.
Beyond Generics: Scaling the High-Margin CDMO & Peptide Frontier
The quarter was driven by its commercial CDMO portfolio, which contributed over 50% of revenue. Growth continues to be anchored in complex molecules and long-gestation projects. Management highlighted that performance remains uneven by nature, with revenue and margins influenced by timing of shipments and product mix.
On the business side, the company is seeing increasing traction from global innovators. Its CDMO pipeline is progressing, with one additional molecule commercialised and more expected to contribute over the next few quarters. New orders are also coming in, with deliveries planned over the next 12 to 24 months. The ramp-up of recently added capacity has begun, although utilisation is still at an early stage and expected to scale gradually.
Asset-Light to Asset-Right: Navigating Unit 3 Capacity for Global Pharma
Expansion remains a key focus area. The company has invested Rs 254 crore in capex during the first nine months of FY26. This includes capacity additions for CDMO projects and investments in new growth areas such as peptides. A new research and development (R&D) campus is also being planned to strengthen process development capabilities and support future innovation-led projects.
Neuland continues to derive a significant portion of its revenue from global markets. It works closely with biotech firms and is increasingly engaging with large pharmaceutical companies. The focus is on complex Active Pharmaceutical Ingredients (APIs) and new chemical entities (NCEs), where entry barriers are higher and customer relationships tend to be long term.
The company’s strategy reflects its position as a second-line player within the pharmaceutical sector. It does not compete with large diversified pharma companies on scale. Instead, it focuses on niche capabilities in complex chemistry and CDMO services. This allows it to participate in high-value segments while remaining relatively under-owned and less visible in the broader market.
In terms of shareholder returns, the company has maintained a consistent dividend approach. The latest payout continues to reflect stable cash flows, even as the company invests in capacity expansion and capability building.
Overall, Neuland appears to be in a transition phase. Growth over the next two to three years is expected to be driven by execution of existing projects and ramp-up of newly added capacity. However, the inherently lumpy nature of the CDMO business and dependence on product cycles remain key variables to watch.
In the past year, the share price of Neuland Laboratories is up 17%.
Neuland Laboratories 1 Year Share Price Chart
#2 TAAL Tech: Capitalizing on the Global Aerospace Design Boom
Incorporated in 2013, TAAL Tech is in the business of providing aircraft charter services. TAAL Enterprises, which is now renamed TAAL Tech, completed an important transition during FY25. The name change reflects the company’s shift toward engineering and technology-led services with a strong focus on aviation and industrial design work.
As of March 2026, Mukul Agarwal holds 8.9% stake of TAAL Tech. This is his shareholding pattern in TAAL Tech for the past eight quarters.
Mukul Agarwal Shareholding Pattern in TAAL Tech (June 2024 – March 2026)
| Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 |
| 8.9% | 8.9% | 8.9% | 8.9% | 8.9% | 8.9% | 8.9% | 8.9% |
Design-to-Delivery: Mastering the Lifecycle of Metallic and Composite Structures
TAAL Tech reported a steady operational performance in the December quarter, with growth supported by its engineering and design services business. Revenue from operations for Q3FY26 stood at Rs 44.1 crore, up about 5% YoY from Rs 42 crore. Profit after tax for the quarter came in at Rs 10.8 crore, compared to Rs 11.4 crore in the same period last year. The moderation appears linked to cost pressures and normalisation after a stronger base in the previous year.
The company operates in the engineering and design services segment, which remains a niche within the broader technology space. It focuses on areas such as aerospace and industrial design, where demand is driven by global outsourcing and specialised engineering requirements. Growth in this segment is typically steady rather than sharp, with project cycles and client dependencies playing a key role.
Engineering Convergence: Bridging Industrial Automation with Smart Mobility
On the global front, TAAL Tech continues to maintain a presence through its subsidiaries in the United States, Switzerland, and the United Kingdom. These markets remain important for client acquisition and execution of high-value engineering contracts. The business model is largely export-oriented, with revenues linked to long-term client relationships and project pipelines.
There have also been structural developments during the period. The company restated its financials following regulatory processes, including the filing of relevant approvals, with April 2023 as the appointed date. This brings clarity to its financial reporting base going forward.
In terms of shareholder returns, the board declared an interim dividend of Rs 35 per equity share in January 2026. This indicates continued cash flow stability despite moderate growth in earnings.
TAAL Tech fits within the broader theme of second-line specialists. It does not compete with large IT services firms on scale. Instead, it operates in a narrower engineering services niche. This allows it to maintain relevance in specialised segments while remaining relatively under the radar in the broader market.
Overall, the company’s performance reflects stability rather than acceleration. Growth remains linked to execution of engineering projects and global demand trends. While the niche positioning provides entry barriers, the dependence on project cycles and limited scale continue to define its operating profile.
In the past year, the share price of TAAL Tech is up 16.8%.
TAAL Tech 1 Year Share Price Chart
#3 KDDL: From Watch Dials to Aerospace Frontiers
Incorporated in 1981, KDDL manufactures watch components like dials, hands and precision engineering goods under the brand name, Eigen.
As of March 2026, Mukul Agarwal holds 3.4% stake of KDDL. This is his shareholding pattern in KDDL for the past eight quarters.
Mukul Agarwal Shareholding Pattern in KDDL (June 2024 – March 2026)
| Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 |
| 3.4% | 3.4% | 3.4% | 3.4% | 3.4% | 3.4% | 3.4% | 3.4% |
The Eigen Edge: Decoupling from Retail with Industrial Engineering
KDDL reported a strong set of numbers for the December quarter, supported by growth across its core businesses. Revenue for Q3FY26 stood at Rs 597 crore, up 26.5% YoY. Net profit came in at Rs 38 crore, compared to Rs 47 crore in Q3FY25, marking a decline, indicating some pressure on margins despite higher revenues.
The company operates in a niche segment of watch components and precision engineering, which remains closely linked to global demand trends. The global watch industry continues to face challenges, particularly in key export markets such as China and Hong Kong, where demand has been weak. In contrast, India continues to show relatively stronger momentum, supported by rising premium consumption and improving domestic demand.
Recent growth as supported by its precision engineering business, which has seen strong traction from export markets. This segment caters to industries such as aerospace, automotive, electronics, and industrial applications. Management highlighted continued order inflows across these segments, supported by its capability in high-precision manufacturing and customised components.
Micron-Level Mastery: Leveraging Toolroom DNA for Global OEMs
On the operational front, the company continues to invest in expanding its capabilities. It is enhancing its in-house electroplating capacity, with the new facility expected to be operational by the first quarter of FY27. This expansion is aimed at improving efficiency and enabling execution of more complex orders. The bracelet manufacturing division is also scaling up, with utilisation levels already above 80%, indicating steady demand visibility.
KDDL is also building additional growth avenues. Its packaging division has reported strong growth, albeit on a smaller base, and is targeting premium domestic and global clients. The company is exploring export opportunities in this segment as well, positioning it as a complementary business to its core watch component operations.
In terms of shareholder returns, the company declared an interim dividend of Rs 15 per share during FY26. Additionally, its subsidiary has announced a dividend, reflecting stable cash generation across the group.
Within the broader market, KDDL fits the profile of a second-line specialist. It does not compete with large consumer-facing brands or diversified engineering players on scale. Instead, it operates in a narrow segment of high-precision components and specialised manufacturing. This positioning allows it to build strong relationships with global clients while remaining relatively under the radar.
Overall, the company’s growth remains supported by export demand and niche capabilities. However, its performance will continue to depend on global demand conditions and the cyclical nature of the watch and precision engineering industries.
In the past year, the share price of KDDL is down 7.7%.
KDDL 1 Year Share Price Chart
#4 Wendt India: Navigating Industrial Cycles with Precision Tooling
Wendt India is a leading manufacturer of super abrasives, machining tools, and precision components. It is a preferred supplier for many of the automobile, auto component, engineering, aerospace, defence ceramics customers for their super abrasive tooling solutions, grinding & honing machines, and precision components.
As of March 2026, Mukul Agarwal holds 2.5% stake of Wendt India. This is his shareholding pattern in Wendt India for the past four quarters.
Mukul Agarwal Shareholding Pattern in Wendt India (June 2025 – March 2026)
| Jun-25 | Sep-25 | Dec-25 | Mar-26 |
| 2.5% | 2.5% | 2.5% | 2.5% |
Resilience in Niche: Absorbing Margin Pressure through Domain Depth
Wendt India’s Q4 financial performance reflects a year of muted growth and margin pressure, even as the company continues to operate within a specialised segment of the industrial abrasives and precision engineering ecosystem.
For FY26, at a consolidated level, the company’s revenue remained largely flat at Rs 233.9 crore. However, profitability saw a significant contraction, with PAT declining 63% YoY to Rs 14.6 crore. This suggests that cost pressures and mix issues were not limited to the standalone entity but were visible across the group structure as well.
Cash Flow Confidence: Supporting Payouts Amidst a Transition Phase
Despite the weak earnings trajectory, the company maintained its dividend payout. It declared an interim dividend of Rs 20 per share and proposed a final dividend of Rs 10 per share, taking the total dividend for FY26 to Rs 30 per share. This indicates continued cash flow confidence even in a softer earnings year.
From a positioning standpoint, the company remains a classic second-line industrial player. It operates in a niche within the abrasives and precision tooling segment, catering to high-spec manufacturing requirements. It does not command the scale or visibility of larger engineering peers, but its business is closely tied to industrial capex cycles and specialised applications. This aligns with the broader theme of investors selectively backing smaller, domain-focused companies rather than large diversified players.
On the operational side, the annual report highlights ongoing investments in process improvements, audit strengthening, and compliance frameworks. The company continues to maintain cost accounting systems and has enhanced its audit and governance structure for the upcoming years. While explicit large-scale expansion announcements are limited, the focus appears to be on steady capability building and maintaining technological relevance within its segment.
Overall, Wendt India’s recent performance reflects a transition phase. Growth has slowed, and profitability has come under pressure. However, its niche positioning and consistent dividend track record suggest stability rather than structural decline. The key monitorable going ahead will be recovery in execution timelines, improvement in product mix, and a pickup in industrial demand that supports both revenue and margins.
In the past year, the share price of Wendt India is tumbled 31.6%.
Wendt India 1 Year Share Price Chart
Valuations
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 5-Year Average EV/EBITDA | Industry Median | ROCE | ROE |
| 1 | Neuland Laboratories | 55.4 | 16.8 | 17.0 | 18.7% | 14.8% |
| 2 | TAAL Tech | 12.0 | 11.1 | 10.6 | 32.7% | 24.3% |
| 3 | KDDL | 8.0 | 10.2 | 15.3 | 14.1% | 11.5% |
| 4 | Wendt | 35.9 | 32.1 | 22.5 | 9.2% | 5.8% |
TAAL Tech stands out with return on capital employed (ROCE) of 32.7% and return on equity (ROE) of 24.3%. Neuland Laboratories is lower but still healthy, with ROCE at 18.7% and ROE at 14.8%. KDDL is more average, with ROCE of 14.1% and ROE of 11.5%. Wendt is clearly on the lower side, with ROCE at 9.2% and ROE at 5.8%.
Valuations also vary a lot. Neuland is trading at 55.4 EV/EBITDA. This is much higher than its 5-year average of 16.8 and the industry median of 17.0. Wendt, at 35.9, is also above its 5-year average of 32.1 and the industry median of 22.5. TAAL Tech is at 12.0, close to its 5-year average of 11.1 and slightly above the industry median of 10.6. KDDL looks cheaper at 8.0, which is below its 5-year average of 10.2 and well below the industry median of 15.3.
Even though these companies are in different sectors, there is a common pattern. Each one operates in a specific niche. They are not large, diversified players. Their businesses depend on specialised work, whether it is APIs and CDMO, engineering services, precision components, or industrial products.
Each company is building on that niche. Neuland is focused on CDMO, TAAL Tech on engineering services, KDDL on manufacturing, and Wendt on industrial products. None of them are competing with the biggest names in their sectors.
Some stocks already look expensive based on current numbers, while others are more reasonably valued. Going ahead, performance will matter more than the story. This set can be watched to see how these second-line players grow and handle their cycles.
Conclusion
Overall, these are not the usual large names that attract most attention. They are smaller companies, each focused on a specific part of the business. That seems to be the common link in Mukul Agrawal’s picks.
The approach looks fairly straightforward. Instead of going after size, the focus is on companies that are strong in their own niche. These businesses may not be widely followed, but they have their own space to grow.
At the same time, being smaller also comes with its own set of challenges. Growth can be uneven. Earnings can depend on a few clients or orders. There is less cushion if something goes wrong.
For retail investors, this is where caution is needed. It is easy to look at a super investor’s portfolio and try to copy it. But they often enter early, have higher risk appetite, and can hold through volatility. Their position size and time horizon are also very different.
This basket gives a sense of how Mukul Agrawal is thinking. But following the same path without understanding the business and risks may not always work. These companies are worth tracking, but decisions should be based on one’s own comfort with risk and time horizon.
You can track how these are progressing by adding these stocks to your watchlist.
Note: We have relied on data from www.Screener.in 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.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her 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.