As financial markets transition from a correction phase into a significant downturn, investors of all kinds are scrambling to minimize losses. During turbulent times like these, the wisdom of renowned investor Warren Buffett resonates: “Be greedy when others are fearful and be fearful when others are greedy.” This philosophy emphasizes that market downturns can provide unique opportunities to acquire solid stocks at lower prices. So, how can investors identify these promising stocks?

Following the Leaders: Insights from Indian Investment Gurus

One effective strategy is to observe the investment choices of successful investors in India, such as Mukul Agarwal. Currently, Agarwal’s portfolio includes 64 stocks valued at approximately ₹6,157 crore, two of which he has retained since September 2021. Remarkably, these stocks are now trading close to their 52-week lows, reflecting discounts of over 50% from their peak values.

Let’s take a closer look at these two compelling investment opportunities.

Allcargo Logistics Ltd: A Leader in Integrated Logistics

Founded in 1993, Allcargo Logistics Ltd stands out as a comprehensive logistics provider, offering services that range from transportation by road, rail, and sea, to warehouse management and specialized project solutions.

• Market Position: As India’s largest private logistics firm and the global leader in consolidating smaller shipments, Allcargo operates in 180 countries and provides door-to-door services in over 50 markets.
• Financial Snapshot: The company boasts a market capitalization of ₹2,988 crore with a dividend yield of 3.62%, making it attractive compared to its peers.

Mukul Agarwal’s interest in Allcargo remains evident; he has maintained a stake of over 1% since September 2021, though his current holding stands at 1.02% as of the end of December 2024. Additionally, the Tata Smallcap Fund has held 1.74% stake since June 2021.

Financial Performance

Examining Allcargo’s financials reveals significant growth:

• Sales Growth: From ₹6,895 crore in FY19 to ₹13,188 crore in FY24, reflecting a compound annual growth rate (CAGR) of 14%.
• EBITDA: The company’s EBITDA increased slightly from ₹457 crore in FY19 to ₹473 crore in FY24, showing modest growth.
• Net Profit Fluctuations: Despite this growth, net profits have fluctuated considerably, with a recent dip to ₹52 crore for the quarter ending December 2024, primarily due to losses in specific markets like the USA and Germany.

Allcargo’s stock price, which was ₹18 in March 2020, has risen to ₹30.1 as of March 12, 2025, marking a 67% increase. However, this remains a 70% discount from its all-time high of ₹98.

Tracxn Technologies Ltd: Innovating Market Intelligence

Tracxn Technologies, established in 2012, specializes in providing market intelligence to the private investment sector. Its platform delivers insights on private companies, aiding investors in deal sourcing and market analysis.

• Market Capitalization: Currently valued at ₹541 crore, Tracxn serves various sectors, including Automotive, Healthcare, and Telecom.

Mukul Agarwal entered Tracxn in December 2022, holding a 1.9% stake. The company went public in October 2022, and its stock price is currently around ₹50.3, close to its all-time low of ₹49.7, and down 60% from its peak of ₹124.

Financial Highlights

Tracxn’s financial trajectory shows promising growth:

• Sales Growth: Sales surged from ₹33.19 crore in FY19 to ₹82.77 crore in FY24, representing a CAGR of 20%.
• EBITDA Recovery: The company turned around from a negative EBITDA of ₹22.18 crore in FY19 to a positive ₹4.88 crore in FY24.
• Profitability: After reporting losses of ₹21.66 crore in FY19, the company posted a profit of ₹6.5 crore in FY24.

Tracxn’s nearly debt-free status positions it well for future growth, and recent initiatives aimed at utilizing AI for data production suggest an optimistic outlook.

Key Takeaways for Investors

For those navigating the current market turbulence, the investment decisions of seasoned investors like Mukul Agarwal can provide valuable insights. With Allcargo and Tracxn trading at substantial discounts, these stocks deserve careful consideration.

While Allcargo’s financial performance offers some reassurance, Tracxn presents a more volatile picture. Nevertheless, Agarwal’s continued investment in both companies raises questions about their potential that regular investors might overlook. Keeping an eye on these firms could yield fruitful insights as the market evolves.

Conclusion

In this unpredictable market scenario, monitoring the strategies of accomplished investors can be a guiding light. As you consider your investment options, remember the wisdom of Warren Buffett and look for opportunities amidst the chaos.

Disclaimer: The information provided in this article is for educational purposes and should not be taken as financial advice. Always consult with a financial advisor before making investment decisions.