Mukul Agarwal Bets ₹160 Cr on Contrasting HCC, Sudeep Pharma Stocks
Overview
Ace investor Mukul Agarwal has injected ₹160 crore into two vastly different companies: Hindustan Construction Company (HCC) and Sudeep Pharma Ltd. Agarwal acquired a 1.7% stake in HCC for ₹80 crore despite its troubled financials, banking on its ₹13,152 crore order book and reduced debt. Concurrently, he bought a 1.3% stake in Sudeep Pharma for ₹82 crore, a fast-growing pharma excipient maker trading at a premium valuation, seeking capital efficiency despite a post-IPO price drop.
Stocks Mentioned
Aggressive Moves in HCC and Sudeep Pharma
Investor Mukul Agarwal has significantly adjusted his substantial portfolio, adding two new stocks with contrasting financial profiles. The latest exchange filings reveal an investment of ₹160 crore across Hindustan Construction Company Limited (HCC) and Sudeep Pharma Limited, signaling bold diversification within his ₹6,615 crore holdings.
Hindustan Construction Company: A Deep Dive
Hindustan Construction Company Limited (HCC), established in 1926, is a major player in India's infrastructure development, responsible for significant portions of the nation's hydropower and nuclear power generation capacity. Despite a market capitalization of ₹4,760 crore, HCC is characterized by a negative Price-to-Earnings (PE) ratio due to fluctuating profits and recent losses. Agarwal acquired a 1.7% stake, worth ₹80 crore, as per filings for the quarter ending December 2025. Sales have declined post-FY22, and EBITDA has shown volatility. However, the company boasts a robust order backlog of ₹13,152 crore, including key projects like the Patna Metro, and has successfully reduced its debt to ₹1,610 crore from ₹4,253 crore five years ago.
Sudeep Pharma: High Growth, High Valuation
In stark contrast, Sudeep Pharma Limited, incorporated in 1989, operates in the pharmaceutical excipients and specialty nutrition ingredients sector, serving over 100 countries. Agarwal invested ₹82 crore for a 1.3% stake. The company exhibits impressive financial growth, with sales growing at a 32% compound annual rate and EBITDA and net profits at over 50% compound rates from FY20 to FY25. Despite a sharp fall from its listing price in late November 2025, Sudeep Pharma trades at a premium PE of 46x, well above the industry median of 30x. Its capital efficiency is highlighted by a 36% Return on Capital Employed (ROCE), significantly outperforming the industry median of 15%.
Investor Outlook: Calculated Risk or Speculation?
These two distinct picks have ignited debate among investors. HCC represents a potential turnaround play, banking on its substantial order book and debt reduction despite current profitability issues. Sudeep Pharma, on the other hand, is a play on sustained high growth, with investors willing to pay a premium for its strong fundamentals, even after a 'broken IPO' narrative emerged post-listing. Both investments underscore Agarwal's strategy of seeking value and growth opportunities across different market segments, drawing close scrutiny from market participants.
