When two of India’s investment titans, Mukul Agarwal and Sunil Singhania, converge on the same stocks, it signals more than mere coincidence; it’s a noteworthy endorsement in the stock market. These seasoned investors, both known for their unique investment strategies, have recently aligned their interests in two specific companies that now catch the attention of market watchers. Their collaboration in selecting these firms raises the question: are these stocks hidden treasures waiting to be uncovered, or are they high-risk plays in an unpredictable market?

Sarda Energy & Minerals Ltd (SEML)

Founded in 1973, Sarda Energy & Minerals Ltd (previously Raipur Alloys & Steel Ltd) is a well-established player in the steel manufacturing industry. The company operates an integrated steel plant, specializing in products like iron pellets, sponge iron, and wire rods, and is also involved in the power sector through its own thermal power plant.

• Market Cap: ₹17,406 crore
• Investment Stakes: Agarwal has been invested since March 2022, while Singhania’s Abakkus has held shares since March 2021.

As of the latest reports for the quarter ending December 2024, Agarwal owns 1.19% and Abakkus holds 1.73% of SEML.

Impressive Financial Growth

SEML has shown strong sales growth, with revenues climbing from ₹2,324 crore in FY19 to ₹3,868 crore in FY24, marking an 11% compound annual growth rate (CAGR). The most recent figures for the first three quarters of FY25 show sales already at ₹3,404 crore, indicating a robust fiscal year ahead.

• EBITDA Growth: From ₹482 crore in FY19 to ₹798 crore in FY24 (11% CAGR).
• Net Profit Surge: A remarkable 21% growth in net profits from ₹207 crore in FY19 to ₹524 crore in FY24.

Given these impressive metrics, it’s no surprise that savvy investors like Agarwal and Singhania are backing SEML. The stock price has seen a meteoric rise, going from ₹11 in March 2020 to an astounding ₹494 as of March 27, 2025, representing a staggering 4,400% increase.

Valuation Insights

Currently, SEML’s stock is trading at a P/E ratio of 26x, slightly above the industry median of 24x. Notably, SEML’s 10-year median P/E stands at just 6x, compared to the industry’s 20x, suggesting strong potential for further growth as the company diversifies into power and mining.

The latest annual report highlights their ambition: “With a remarkable 2X growth over the last four years, we are now on the brink of a transformative leap forward. Our ambitious plans in the energy and minerals sectors should result in rapid, substantial growth, supported by a strong balance sheet and robust cash flows.”

J Kumar Infraprojects Ltd (JKIL)

J Kumar Infraprojects Ltd specializes in executing a variety of infrastructure projects, including transportation engineering and civil construction. With a market capitalization of ₹4,882 crore, JKIL ranks among the top players in the EPC sector, particularly for metro projects.

• Investment History: Agarwal has been a stakeholder since June 2018, while Singhania’s Abakkus joined in June 2022.

As of December 2024, Agarwal holds 2.61% and Abakkus has 2.51% of JKIL.

Strong Sales and Profitability

JKIL has also exhibited solid financial performance, with sales growing from ₹2,787 crore in FY19 to ₹4,879 crore in FY24, which corresponds to a 12% CAGR. The latest sales figure for the first nine months of FY25 stands at ₹4,061 crore.

• EBITDA Increase: Grew from ₹436 crore in FY19 to ₹704 crore in FY24, reflecting a 10% CAGR.
• Net Profit Growth: Increased from ₹177 crore in FY19 to ₹329 crore in FY24, a 13% CAGR.

JKIL’s stock has also performed impressively, starting at around ₹80 in March 2020 and climbing 706% to approximately ₹645 as of March 27, 2025.

Market Valuation

Despite its recent gains, JKIL’s stock trades at a P/E ratio of 13x, significantly lower than the industry median of 20x. This suggests that the stock may still hold value, especially when considering its historical 10-year median P/E of 13x versus the industry’s 18x.

A Unique Investment Opportunity

The alignment of Agarwal and Singhania’s investments in Sarda Energy & Minerals Ltd and J Kumar Infraprojects Ltd has put these companies in the spotlight. The impressive stock performances—SEML’s 4,400% surge and JKIL’s 706% increase—indicate that these investments are far from random; they reflect a calculated blend of risk and opportunity.

The big question remains: have these stocks reached their peak, or do they still have room for growth? As SEML expands in energy and mining and JKIL strengthens its foothold in infrastructure, these stocks may be key players in reshaping wealth in the market.

Keeping a close watch on these emerging companies could prove advantageous for investors looking to capitalize on future opportunities.

Disclaimer

This article provides insights and analysis based on various financial data sources. It is not intended as investment advice. Always consult with a financial advisor before making investment decisions.

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