Ace investor Mukul Agrawal adds Wendt India in June quarter, buys 2.50% stake

Mumbai, July 19, 2025: Seasoned investor Mukul Agrawal, known for his strategic investments in lesser-known but high-growth potential stocks, has added Wendt India Ltd to his portfolio during the June 2025 quarter. The move has sparked interest among retail and institutional investors, as Agrawal picked up a 2.50% stake in the precision grinding solutions provider.

According to the latest shareholding pattern disclosed to the BSE, Mukul Agrawal now holds 50,085 shares in Wendt India, valued at approximately ₹60 crore based on the company’s latest stock price of around ₹11,900 apiece. This marks a fresh entry and signals renewed investor interest in niche engineering companies.

Who is Mukul Agrawal?

Mukul Agrawal is one of India’s top individual investors with a reputation for early-stage bets on small and mid-cap companies that eventually deliver multibagger returns. With a portfolio spanning financials, pharmaceuticals, consumer goods, and niche manufacturing firms, his investments are closely watched by market participants for potential trends and signals.

About Wendt India

Wendt India Ltd, a joint venture between Carborundum Universal Ltd (CUMI) and Wendt GmbH, Germany, is a key player in the super abrasives, grinding machines, and precision components industry. The company caters to diverse sectors such as automotive, aerospace, engineering, and cutting tool manufacturers.

In FY24, Wendt India posted a net profit of ₹45.8 crore, up 18% YoY, with revenue touching ₹195.4 crore, marking an annual growth of over 12%. The company has been steadily improving its margins, supported by a product mix skewed towards high-value abrasives and customized solutions.

Strategic Bet on Engineering Precision

Industry analysts believe Mukul Agrawal’s stake acquisition reflects confidence in the long-term growth prospects of India’s precision engineering sector.

“Wendt India is a unique play on India's rising manufacturing and industrial automation drive. With Make-in-India and PLI schemes gaining traction, demand for high-precision grinding and cutting solutions is expected to rise. Agrawal's entry indicates a strategic bet on this niche but rapidly growing segment,” said Amar Ambani, Head of Institutional Equities at Yes Securities.

Stock Performance and Valuation

Wendt India shares have outperformed the broader markets in recent months. The stock has surged nearly 34% year-to-date, significantly ahead of the BSE SmallCap index which is up around 18% in the same period.

The company currently trades at a P/E multiple of 39.2x, which some analysts consider reasonable given its high return ratios (ROCE of 29.5% and ROE of 23.8%) and low debt levels. The company's consistent dividend payouts and clean balance sheet add to its attractiveness.

“While valuations are not cheap, the company's unique business model, niche market presence, and solid financials make it a compelling long-term bet,” said Suresh Ganapathy, Equity Strategist at BNP Paribas India.

Rising Promoter and Institutional Confidence

Interestingly, Wendt India’s promoter holding remains high at 75%, indicating strong long-term commitment. The public shareholding stands at 25%, of which Mukul Agrawal’s recent acquisition now forms a significant chunk.

In addition to Agrawal’s entry, mutual funds and domestic institutional investors have also marginally increased their exposure in the past two quarters, further strengthening market sentiment around the stock.

Investor Outlook: Should You Follow the Big Bet?

While Mukul Agrawal's entry is promising, market experts caution retail investors to assess the stock beyond just star investor moves.

“Wendt India is not a high-volume stock. It has low liquidity and high price sensitivity. Investors should evaluate their risk appetite, investment horizon, and diversification needs before taking positions,” advised Ravi Singh, Senior VP – Research at Share India.

From a thematic standpoint, the engineering and capital goods sector is poised to benefit from the capex revival in India, both public and private. Companies like Wendt India that operate in specialized domains with high barriers to entry are likely to command premium valuations over time.

Mukul Agrawal’s latest stake in Wendt India has drawn spotlight on the often-overlooked precision engineering space. With robust financials, niche product lines, and macro tailwinds in manufacturing, Wendt India may emerge as a hidden gem in the small-cap universe. However, as always, investors must tread carefully, conduct due diligence, and align investments with their long-term strategy.