Saurabh Mukherjea is a revered name in the Indian investment world. His investment strategies and portfolio serve as an inspiration for both small and large investors. In FY25, his Little Champs portfolio, focused on small-cap stocks, delivered a net return of 17.6%, while the midcap-based Consistent Compounders portfolio achieved a return of 25%.
Saurabh Mukherjea credits this success to the robust earnings growth of portfolio companies and strategic reshuffling of holdings. His investment firm, Marcellus Investment Managers, consistently draws attention from investors.
Which Stocks Did Saurabh Mukherjea Buy and Why?
1. Ahluwalia Contracts
Ahluwalia Contracts India Limited (ACIL) has been included in Saurabh Mukherjea’s Consistent Compounders portfolio. This company is a leader in the construction sector, specializing in railway station redevelopment, airport terminals, hospitals, and educational institutions.
Reasons for Inclusion:
- Anticipated significant growth in the construction sector over the next 3-5 years.
- New projects expected from both government and private sectors.
- Strong balance sheet and debt-free status.
- Average ROCE (Return on Capital Employed) of 24.9% over the past 10 years.
- FY24 revenue of ₹38.6 billion and net profit of ₹3.4 billion.
Ahluwalia Contracts has worked alongside giants like Larsen & Toubro. The company is eyeing a new order flow worth ₹70 billion in FY25.
2. Clean Science and Technology Limited (CSTL)
Clean Science and Technology Limited (CSTL) has been added to the Little Champs portfolio. This company is a global leader in chemical manufacturing, with its products widely used in packaged food, pharma, and cosmetics industries.
Reasons for Inclusion:
- Proprietary catalytic manufacturing process ensuring high output and low waste.
- Investment in new products like HALS (Hindered Amine Light Stabilizers), which are technologically advanced and have large market potential.
- Revenue CAGR of 15% and PAT CAGR of 20% over the last 5 years.
- Average pre-tax ROCE of 43%.
While CSTL faces challenges such as input price fluctuations and rising competition, its new product portfolio positions it well for long-term competitiveness.
Which Stock Did Saurabh Mukherjea Exit and Why?
Eureka Forbes
Saurabh Mukherjea has exited Eureka Forbes from the Consistent Compounders portfolio.
Reasons for Exit:
- Increasing competition in the water purification market.
- Challenges posed by major players like A.O. Smith and PureIT.
- Revenue loss in the accessories and service segment.
- Limited future potential after a 30% rise in share price.
Eureka Forbes reported revenue of ₹21.9 billion and net profit of ₹915 million in FY24. However, the company requires new strategies to sustain growth.
Conclusion
Saurabh Mukherjea’s investment strategy is built on a long-term approach and strong fundamentals. While his portfolio moves may seem attractive to replicate, investors should assess their own risk tolerance and financial goals before making decisions.
Disclaimer
Investing in the stock market is subject to market risks. Please conduct your own research or consult a financial advisor before investing. The information provided in this article aims to raise awareness and enhance the knowledge of investors and traders.
