One of India’s most successful and very reclusive super investors, Nemish Shah deserves to be called a Warren Buffett of India. Any movement in his rarely changing portfolio, grabs the attention of everyone in the market.
Nemish Shah currently holds only 6 stocks in his portfolio worth over Rs 3,060 cr. But what has caught the attention of smart investors are 2 stocks that are currently trading almost at over 50% discount.
This decline however has not affected the value investor that Nemish Shah is. His portfolio rarely changes in terms of holdings. While the broader markets are inching upwards, these stocks are available at over 50% lower than their all-time high prices. This has given air to the debate about this being a buying opportunity or traps in plain sight.
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What keeps Nemish Shah invested in these companies while the markets are hammering these stocks? Let us take a look at these stocks.
The Apparel Bet: A Decade of Patience Amidst Mounting Losses
Incorporated in 1984, Zodiac Clothing Company Limited deals in clothing and clothing accessories.
With a market cap of Rs 260 cr, the company operates in men’s formal wear through its flagship brand, Zodiac, in party /club wear through its sub-brand, ZOD! and in relaxed casual wear through its sub-brand, Z3. These brands are licensed by ZCCL from its group company, Metropolitan Trading Company, which is 100% owned by the promoters under a perpetual licensing arrangement.
India’s Waren Buffett, Nemish Shah, has been holding a stake in Zodiac Clothing since December 2015 (as per the data on Trendlyne.com shows). Currently he holds 1.6% stake in the company which is worth almost Rs 4 cr.
Now what makes this company interesting to look at is the fact that Nemish has been invested in it for almost a decade. Even with weak financials in the last few years.
The company’s sales have seen a lot of ups and downs in the last few years.
YearFY20FY21FY22FY23FY24FY25Sales/Cr191100127175146174
The EBITDA (earnings before interest, taxes, depreciation, and amortization) has recorded consistent losses.
YearFY20FY21FY22FY23FY24FY25EBITDA/Cr9-22-17-5-18-21
The net profits also faced the heat as all numbers faltered.
YearFY20FY21FY22FY23FY24FY25Net Profit/Cr-29-29-1616-36-37
The share price of Zodiac Clothing Company Ltd was around Rs 118 in August 2020,
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