Investor Stays Put: Sirca & Raymond Stocks Dip

Mukul Agarwal, a closely watched investor, is noted for his strategy of holding onto small and mid-sized businesses through market volatility. Two such stocks in his sphere, Sirca Paints and Raymond Lifestyle, have faced recent price declines, prompting scrutiny of their underlying business health versus market sentiment.

Sirca Paints, a premium wood coatings and decorative paints maker, has seen its stock fall from a high of Rs 539 to Rs 385 since 2025. While Mukul Agarwal doesn't directly own Sirca stock, his wife, Asha Mukul Agrawal, holds a 2.52% stake acquired in September 2019. The company has achieved sales growth from Rs 134 cr in FY20 to Rs 492 cr in FY26, with net profit rising from Rs 25 cr to Rs 65 cr. However, softening margins and increased debtor days have cooled market sentiment.

Raymond Lifestyle, housing Raymond's fabric and apparel business, was carved out and listed in September 2024. Mukul Agrawal holds a 1.2% stake worth Rs 50 cr. The reported FY24 net profit of Rs 2,645 cr was significantly boosted by one-off demerger gains, masking more modest real operating profits. The company faces challenges with thin operating margins and high interest costs. Despite this, the promoter has steadily increased its stake from 54.7% to 59.6%.

The approach for Sirca Paints is seen as a growth story taking a pause due to a valuation reset, with real earnings compounding. Raymond Lifestyle, conversely, represents a value play where assets and brands are bought at a discount, contingent on future profit realization. Both instances highlight the importance of differentiating between stock price movements and business fundamentals.