5 days ago
Nemish Shah’s Five-Stock Portfolio Tests Long-Term Conviction
Nemish Shah owns small parts of five Indian companies.
He has kept these investments for at least ten years.
Most of the money is invested in LMW and Asahi India Glass.
Elgi Equipments is making strong profits and generating cash.
LMW’s share price has risen much faster than its business results.
Bannari Amman Sugars and Zodiac Clothing are currently struggling.
The portfolio’s lack of selling could show patience, but some shares may also be difficult to sell.
The article says investors should study future results rather than simply copy the holdings.
Nemish Shah has held five stocks since at least 2015, valued at Rs 3,659 crore in June 2026.
LMW and Asahi India Glass account for 87.1% of the portfolio’s value.
LMW represents nearly half the portfolio despite weak recent earnings and a price-to-earnings ratio of about 113.
Elgi Equipments is the strongest operating business, while Bannari Amman Sugars and Zodiac Clothing reported quarterly losses.
The portfolio illustrates both patient investing and the possibility that concentration or illiquidity can explain limited selling.
- Who
- Nemish Shah, whose portfolio contains stakes in LMW, Asahi India Glass, Elgi Equipments, Bannari Amman Sugars and Zodiac Clothing.
- What
- An analysis of his five-stock portfolio, valued at Rs 3,659 crore based on June 2026 filings and recent closing prices.
- Where
- The companies operate in India, including manufacturing and sugar operations in regions such as Coimbatore, Tamil Nadu and Karnataka.
- When
- The holdings have been visible since at least 2015; the analysis uses June 2026 filings and quarterly results.
- Why
- The portfolio is notable for its long holding period despite sharply different business performances, valuations and liquidity conditions.
Long-Term Conviction
Illiquidity and Inertia
Why the holdings remained unchanged
Long-Term Conviction
The decade-long holding period may reflect patience and confidence in businesses whose results can improve over time.
Illiquidity and Inertia
Limited selling may partly reflect concentrated positions, thin trading and the difficulty of exiting without affecting prices.
How to interpret LMW’s share performance
Long-Term Conviction
LMW has a large treasury, is nearly debt-free, has aerospace and advanced-technology activities, and may benefit from new business plans.
Illiquidity and Inertia
Its share price has compounded at roughly 18% annually while sales grew about 1% and profit declined about 7% annually over the decade; its valuation is therefore difficult to justify from current earnings alone.
Asahi India Glass investment case
Long-Term Conviction
New capacity may begin contributing after temporarily raising depreciation and interest costs, with the latest quarter showing a record 23% operating margin.
Illiquidity and Inertia
The company’s new capacity has so far increased costs, while FY26 net profit fell 6% despite 9% sales growth and the stock trades at roughly 54 to 55 times earnings.
Key facts
- Portfolio value
- Rs 3,659 crore based on June 2026 filings and recent closing prices.
- Largest holding
- LMW is valued at about Rs 1,793 crore and represents 49.0% of the portfolio.
- Second-largest holding
- Asahi India Glass is valued at about Rs 1,393 crore and represents 38.1% of the portfolio.
- Strongest operating business
- Elgi Equipments reported 22.1% return on capital employed, 19.0% return on equity and Rs 348 crore of free cash flow in FY26.
- Asahi quarterly result
- Its June 2026 operating margin reached 23%, described as the highest in twelve quarters.
- Weakest holding
- Zodiac Clothing recorded FY26 sales of Rs 162 crore, a net loss of Rs 35 crore and negative return on equity of 18.1%.
- Ownership changes
- Shah’s share counts in Asahi India Glass and Zodiac Clothing were unchanged; dilution reduced the reported stake percentages.
Sources
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