Super Investors Offload Stakes in Top Indian Companies

Public corporations have made their financial data available as the annual period of March comes to a close. Concurrently, the shareholding patterns of these corporations are surfacing, providing investors and market spectators some much-needed insights. The so-called ‘India’s Warren Buffetts’, or the Super investors, naturally draw more attention. While people may give more importance to the new stocks these Super investors have invested in, the shares unloaded by them in the previous quarter are equally significant. What are these stocks, and what should you do if you hold them?

Sundaram Finance Ltd was founded back in 1954 and conducts its business across various financial sectors, including Home Finance, Mutual Funds, General insurance, and financial service distribution. It boasts a market capitalization of Rs 58,257 cr. Radhakishan Damani, often hailed as India’s Retail King, had a 2.37% stake in Sundaram Finance since March 2016 that extended into the December quarter of 2024. Recent records indicate a decrease in this shareholding to below 1%.

Over the past half-decade, Sundaram Finance has sustained a compound growth rate of 15% in their sales, whereas their profit from financing has followed a similar pattern. The net profits have risen by a compound 12% in these five years. Tracing the journey of Sundaram’s share price from Rs 1,220 in April 2020 to a whopping Rs 5,244 on 17th April 2025, it amounts to nearly a 330% leap. The stock currently trades at a PE (Price to Earnings Ratio) of 36x, elevated compared to the industry median PE, around 22x, and its own 10-year median PE, 23x.

Part of the RPG Group, Ceat Ltd is one of India’s leading tyre manufacturing companies. Towards the end of the December quarter in 2024, it held 1.11% of the market share, which according to recent reports has now dipped below 1%. Ceat Ltd’s sales have experienced an annual compound growth rate of 11% over the past five years. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) saw a compound growth of 21%, and net profits saw a spike of 19% in the same period.

Ceat Ltd’s shares which were priced at Rs 815 in April 2020 are now being traded at Rs 3,020 as of 17th April 2025 – a staggering 270% growth. Ceat Ltd’s shares presently trade at a PE of 24x which is slightly lower than the industry median at 26x. The 10-year median PE ratio for Ceat and the industry were recorded at 20x and 19x respectively.

RPSG Ventures Ltd, a unit of the RP Sanjiv-Goenka Group, is involved in a multitude of sectors like IT services, BPM, FMCG, Ayurveda formulations, real estate, sports, and restaurants. The company, which was listed in 2019, now has a market cap of Rs 2,864 cr. Over the past five years, its sales have grown at a compound rate of 13%, the EBITDA surged at a compound rate of 27%, while the net profits were reported to have a compound increase by 26%.

Since being listed in January 2019 at Rs 406, the shares of RPSG Ventures leaped 113% to reach RS 866 on 17th April. RPSG Ventures’ share currently trades at a negative PE, making it unavailable on screener or trendlyne, although the sector median is listed at 33x.

The next company under consideration, The Hi-Tech Gears Ltd, is a leading manufacturer of auto components, primarily engaged in creating gears and transmission components. Although the company’s sales have only grown at a 4% compound rate in the last five years, its EBITDA registered a compound rise of 6%, and the net profits saw an increase of 11% within the same period.

Five years ago, Hi-Tech Gears’ share price stood near Rs 98 and as of 17th April 2025, they are being traded at Rs 650, demonstrating an impressive growth of 563%. Presently, the company’s shares are being traded at a PE of 25x, while the industry median is also around 25x. Both the 10-year median PE for Hi-Tech Gears and the industry appear to be the same at 24x.

BirlaNu Ltd, the final company under discussion, made its mark in the building materials and construction industry due to its extensive product range. Previously known as Hyderabad Industries Ltd, the company adopted its new name, BirlaNu Ltd, in March 2025. The company, carrying a current market cap of Rs 1,431 cr, piqued the interest of India’s investment maestro, Sunil Singhania, founder of Abakkus Asset Management. The recent exchange filings, however, show that the interest has slipped below 1%.

Analysing BirlaNu’s performance, its experience a compounded sales growth rate of 9% over the past half-decade, whereas the EBITDA fell from Rs 244 cr in FY19 to Rs 125 cr in FY24. Notably, the company’s net profits also saw a compound drop of 21% in those five years. However, the share price of BirlaNu surged from Rs 720 in April 2020 to Rs 1,897 as of 17th April 2025, signifying a 164% increase.

Valuations and investments of prominent investors like Damani, Agarwal, Dhawan, Singhania, and Nemish Shah are scrutinised by investors across all levels. Their investment picks may generate optimism, lending investors the hope of lucrative returns. Conversely, when these seasoned investors offload stocks, the markets may experience jitters. However, prudent investors may use these events as opportune moments to reassess their personal investments.

It’s important to remember that these Super investors held on to these investments for an extended period, possibly having accomplished their preset objectives. This may not always synchronize with other investors’ situations. So, whether you hold these stocks or not, exercising vigilance and keeping a close eye on these developments is strongly recommended.