India's Investing Maestro Picks Two Starkly Opposite Stocks: One Tanks, One Soars! Which Will Rule 2026?

Investor Spotlight: Sunil Singhania's Contrasting Stock Picks for 2026

Renowned investor Sunil Singhania, founder of Abakkus Funds and often compared to India's 'Warren Buffett,' is capturing market attention with his latest strategic stock selections. Singhania, known for his focus on midcap and smallcap companies with strong fundamentals, has recently invested in two companies that present a stark contrast in performance: Himatsingka Seide Ltd and Denta Water & Infra Solutions Ltd. These picks are now attracting significant interest from investors looking to build their watchlists for 2026.

Himatsingka Seide Ltd: A Textile Manufacturer Facing Profit Volatility

Himatsingka Seide Ltd, established in 1985, operates in the home textile sector, specializing in bedding, drapery, and upholstery products. The company manufactures for over a dozen global brands, holding exclusive licensing rights for major names like Calvin Klein and Tommy Hilfiger. As of the quarter ending December 2024, Sunil Singhania's Abakkus Funds acquired a 6.8% stake, now valued at approximately Rs 101 crore.

Despite its association with premium global brands, Himatsingka Seide has shown modest sales growth, averaging just 3% compounded annually between FY20 and FY25. Its EBITDA has also seen a subdued compounded growth of 4% over the same period. Net profits have been highly volatile, described as a "roller coaster ride." For the first half of FY26, sales stood at Rs 1,287 crore, with EBITDA at Rs 220 crore and profits at Rs 53 crore.

Share price performance has been flat over the last five years, trading around Rs 118 as of December 4th, compared to Rs 120 in December 2020. The company's stock trades at a Price-to-Earnings (PE) ratio of 9x, significantly lower than the industry median of 20x. Recent developments include a licensing agreement with The Walt Disney Company for home textile products across its franchises in Europe. Management attributes past financial declines to tariff issues, anticipating future ease.

Denta Water & Infra Solutions Ltd: A Turnaround Story with Explosive Growth

In sharp contrast, Denta Water & Infra Solutions Ltd, incorporated in 2016, operates in water management, irrigation, and infrastructure solutions, including railway and highway construction. With a market cap of Rs 964 crore, the company offers expertise in ground water recharging and water management infrastructure projects.

Sunil Singhania's Abakkus Diversified Alpha Fund-2 acquired a 1.3% stake in this company for about Rs 12.2 crore in the quarter ending March 2025. Denta Water showcases remarkable financial growth. Its Return on Capital Employed (ROCE) stands at a robust 25%. Sales have surged at a compounded rate of 186% from FY20 to FY25, reaching Rs 203 crore. EBITDA has grown exponentially, with over 450% compounded growth, moving from zero in FY20 to Rs 68 crore in FY25. Net profits have transformed from zero in FY20 to Rs 53 crore in FY25.

The company's share price has seen significant upward movement, hitting an all-time high of Rs 480 in October 2025, and was trading at Rs 360 on December 4th, 2025, post its listing in January 2025 around Rs 340. Its PE ratio is 15x, slightly below the industry median of 18x.

Future Prospects and Investor Strategy

Management projects revenues exceeding Rs 300 crore in FY26, with ambitious targets for FY27 and FY28. The company boasts an order book of Rs 734 crore and anticipates bagging additional orders worth Rs 800-1000 crore.

Both Himatsingka Seide and Denta Water & Infra Solutions Ltd exemplify Singhania's diverse investment approach. While Denta Water represents a strong turnaround story, Himatsingka Seide indicates a belief in a management conviction and potential recovery despite current financial headwinds. The backing by Sunil Singhania makes both stocks compelling additions to any 2026 watchlist.

Impact

• Impact Rating: 8/10
• This news can significantly influence investor sentiment towards midcap and smallcap stocks, particularly those identified by prominent investors like Sunil Singhania. Investors may flock to these specific stocks or similar companies in the textile and infrastructure sectors, potentially driving up their valuations. The contrasting performance highlights different investment strategies (turnaround vs. value play), offering lessons for retail investors.

Difficult Terms Explained

• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance before accounting for financing costs, taxes, and non-cash expenses.
• Compounded Rate: The average annual growth rate over a specific period, assuming profits or sales are reinvested.
• PE Ratio (Price-to-Earnings Ratio): A valuation metric that compares a company's stock price to its earnings per share. It helps investors gauge if a stock is overvalued or undervalued.
• ROCE (Return on Capital Employed): A profitability ratio that measures how efficiently a company is using its capital to generate profits. A higher ROCE indicates better efficiency.
• Licensing Agreement: A contract where one party (licensor) grants another party (licensee) the right to use intellectual property, like brand names or patents, in exchange for royalties or fees.
• Tariff Overhang: Refers to the uncertainty or negative impact caused by trade tariffs imposed on imported or exported goods, affecting a company's costs or competitiveness.
• Order Book: The total value of contracts that a company has secured but not yet fulfilled. It provides an indication of future revenue.
• H1FY26 / FY20-FY25: Refers to the first half of the financial year 2026 and the fiscal years from 2020 to 2025, respectively, used to track financial performance over time.