Radhakishan Damani

Retail King Radhakishan Damani’s Hidden Small Cap Bets Now Trading at Over 30% Discount

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 June 25, 2025 | Radhakishan Damani
India’s legendary investor and ‘Retail King’, Radhakishan Damani, is widely known for his calm, calculated, and long-term investing strategies. Most investors follow his high-profile holdings like Avenue Supermarts (DMart), but a deeper look into his portfolio reveals two lesser-known small cap gems currently trading at over 30% discount from their highs.

These stocks may not make daily headlines, but Damani’s silent conviction in them signals potential opportunities for retail investors looking to follow the footsteps of one of India’s most successful value investors.

1. Bhagiradha Chemicals & Industries Ltd – An Agrochem Star on Damani’s Radar

About the Company

Incorporated in 1993, Bhagiradha Chemicals & Industries Ltd is a fast-growing agrochemical company engaged in the manufacturing of insecticides, herbicides, and fungicides. It exports to key markets across the USA, Europe, South America, and Asia.

  • Market Cap: ₹3,864 crore

  • Exports to: USA, Brazil, UK, Germany, Israel, Malaysia, and more.

Financial Performance

  • Sales Growth: ₹246 Cr (FY20) → ₹440 Cr (FY25)

  • EBITDA Growth: ₹17 Cr → ₹37 Cr (CAGR of ~17%)

  • Net Profit Growth: ₹7 Cr → ₹14 Cr (CAGR of ~22%)

  • Share Price Jump: ₹27 (June 2020) → ₹299 (June 2025)

    Total return: ~1007% in 5 years

Even after this massive rally, the stock is trading at a ~34% discount from its all-time high of ₹448.

However, valuations seem stretched:

  • Current P/E Ratio: 279x

  • Industry Median P/E: 38x

  • Company’s 10-Year Median P/E: 37x

Valuation caution aside, the company’s robust growth and Radhakishan Damani’s recent entry through his firm Derive Trading and Resorts Pvt. Ltd. (holding 3.32% stake) indicate a long-term play in progress.

Capex and Future Plans

Executive Director & CEO A. Arvind Kumar mentioned in a recent investor update:

“The capex plan remains firmly on track, with Phase I expected to be operational by June–July 2025, followed by ramp-up over the next 12–18 months. New product launches will reinforce long-term growth.”

2. BF Utilities Ltd – A Quiet Performer in Energy & Infra

About the Company

BF Utilities Ltd, founded in 2000, is engaged in wind energy generation and infrastructure development. The company supplies power primarily to Bharat Forge’s Pune plant and operates in the infrastructure sector as well.

  • Market Cap: ₹2,885 crore

  • Stake Held by Damani: 1.01% (since June 2020)

Financial Performance

  • Revenue Growth: ₹448 Cr (FY19) → ₹969 Cr (FY24)

  • EBITDA Growth: ₹331 Cr → ₹581 Cr

  • Net Profit Growth: ₹72 Cr → ₹304 Cr (CAGR ~27%)

  • YTD (Apr-Dec 2024) Profits: ₹254 Cr

  • Share Price Growth: ₹203 (June 2020) → ₹766 (June 2025)

    Total return: ~280%

Despite this growth, the stock trades at a ~32% discount from its 52-week high of ₹1,129 and nearly 70% below its all-time high of ₹2,628.

  • Current P/E Ratio: 20x

  • Industry Median P/E: 80x

  • Company’s 10-Year Median P/E: 24x

Strong Return Metrics

  • ROCE (Return on Capital Employed): ~29%

    🏆 One of the highest in the sector—indicating efficient capital usage and healthy profitability.

Why Radhakishan Damani Likes These Underdogs

Radhakishan Damani is not one to chase momentum or flashy trends. Instead, his portfolio suggests a methodical approach:

Bhagiradha Chemicals

  • Recently added to portfolio

  • Export-led growth model

  • Ambitious capex plan for future scale

  • Impressive 5-year stock return of over 1000%

  • Still correcting after peaking at ₹448

BF Utilities

  • Held since 2020

  • Consistent profit growth

  • Attractive valuation compared to peers

  • High ROCE and a hidden play on clean energy

Discounted Now—But For How Long?

The sharp corrections in both stocks (30–70% from highs) could be attributed to sector-wide re-ratings or profit booking. However, Damani’s unwavering stake suggests that these could be value opportunities in disguise—particularly for long-term investors.

Should You Follow The Retail King Radhakishan Damani ‘s Footsteps?

While the high P/E of Bhagiradha may cause concern for value purists, the growth potential and export reach are noteworthy. BF Utilities, on the other hand, offers a blend of value + profitability, making it a strong contrarian play in energy and infra.

These two companies—largely unnoticed by retail buzz—are backed by one of India’s most revered investors, adding weight to the possibility that they’re poised for a strong future.

Disclaimer

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In Summary: Small Caps With Big Potential

Company CMP (June 2025) All-Time High Discount Damani Stake
Bhagiradha Chemicals ₹299 ₹448 ~34% 3.32%
BF Utilities ₹766 ₹2,628 ~70% 1.01%