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Investors Bet Big on PSU Turnaround Amidst Market Shifts
18 Oct
Summary
- Sunil Singhania invested in BEML, a PSU securing a massive high-speed train order.
- Sanjiv Shah increased stake in Kanoria Chemicals after its subsidiary spin-off.
- BEML's stock fell 11% despite a record order, while Kanoria's surged 127%.
Sunil Singhania's Abakkus Flexi Cap Fund has acquired a 1.08% stake in BEML, a public sector undertaking. BEML recently won a ₹5,400 crore order for high-speed trains for the Mumbai-Ahmedabad corridor. This order significantly boosts its existing ₹21,700 crore order book, representing approximately five years of revenue. However, BEML's profits have fallen, and its stock is down 11% over the past year despite the order win.
In contrast, seasoned investor Sanjiv Shah has increased his stake in Kanoria Chemicals & Industries to 3.97%. The company recently spun off its loss-making Swiss subsidiary, APAG, which has led to a cleaner financial picture. Kanoria's core chemicals business saw revenue grow 18% annually, and its stock price has surged 127% since March 2026. The company has also reduced its borrowings significantly.
Both investors are betting on different futures. Singhania is investing in BEML's future earning potential from its large order book, while Shah appears to be capitalizing on Kanoria Chemicals' turnaround post-subsidiary divestment. Investors are advised to watch both stocks closely over the next two quarters.
