Category: FinanceX

Table of Contents

1. A Demerger, Mounting Losses and a Bigger Stake
2. A Second Bet: Profitability Amid Turbulence

A Demerger, Mounting Losses and a Bigger Stake

When a veteran investor adds to a position in a stock hovering near its lowest levels, markets tend to take notice.

Ashish Dhawan, co-founder of ChrysCapital, has increased his holding in Bluspring Enterprises Ltd to 5 percent from 4.1 percent in the previous quarter, even as the infrastructure services company trades close to its post-listing lows. The move signals a high-conviction, contrarian wager at a time when sentiment toward the sector remains fragile.

Bluspring, created in 2025 following a demerger from Quess Corp, operates across integrated facility management, engineering services, telecom support, security and technology-enabled services. With a market capitalization of roughly Rs 826 crore, it is a modest player in what management describes as a Rs 1.7 lakh crore addressable market.

Financially, the picture is mixed. Revenue rose sharply from Rs 2,682 crore in fiscal 2024 to Rs 3,484 crore in fiscal 2025, a 30 percent increase. But profitability has lagged. Net losses widened from Rs 149 crore to Rs 173 crore over the same period, and the company has yet to post sustained bottom-line gains. For the nine months ended December 2025, losses continued, though at a narrower pace.

The stock’s trajectory has reflected that strain. Since listing at around Rs 85 after the demerger, shares have fallen to roughly Rs 55, a decline of more than 45 percent from their peak. With persistent losses, the company trades at a negative price-to-earnings ratio, in contrast to an industry median of about 21 times earnings.

Management has pledged a turnaround. On a recent earnings call, executives projected double-digit revenue growth and an expansion in operating margins, targeting 4 percent in the near term and 6 percent by fiscal 2030. Growth in telecom and industrial verticals is expected to remain steady, and any acquisitions, executives say, will prioritize improvements in return on equity and capital efficiency.

Dhawan’s increased stake now valued at about Rs 41 crore suggests confidence that operational stabilization and scale could eventually unlock value. But the bet comes with risks typical of post-demerger transitions: integration challenges, margin pressures and execution uncertainty.

A Second Bet: Profitability Amid Turbulence

Bluspring is not the only company near cyclical lows in Dhawan’s portfolio. He also continues to hold a 4.8 percent stake in AGI Greenpac Ltd, a glass and packaging manufacturer with a market capitalization of about Rs 3,558 crore.

Founded in 1960, AGI Greenpac produces container glass, PET bottles and security closures, and holds an estimated 17 to 20 percent share of India’s organized glass packaging market. Unlike Bluspring, it has delivered consistent profitability and strong capital efficiency. Its return on capital employed stands near 20 percent, well above the industry median of roughly 12 percent.

Over five years, net profit has expanded sharply, rising from Rs 48 crore in fiscal 2020 to Rs 322 crore in fiscal 2025. Yet the stock has not been immune to volatility. After climbing more than 200 percent between 2021 and its peak in 2025, shares have corrected about 40 percent in the past six months.

Part of that decline followed a setback in the Supreme Court, which rejected the company’s resolution plan for Hindusthan National Glass, forcing a restart of the bidding process and clouding expansion prospects. The stock now trades at about 11 times earnings, below the industry median of 19 times, leaving open the possibility of a valuation re-rating if growth stabilizes.

Taken together, Dhawan’s positions reflect a broader investing philosophy: patience in periods of market pessimism and a willingness to absorb near-term uncertainty in pursuit of longer-term gains. One company represents a turnaround narrative still in formation; the other, an operationally solid business navigating legal and cyclical headwinds.

Whether these bets prove prescient will depend on execution, governance and broader economic conditions. For now, they offer a glimpse into how seasoned investors approach volatility not as a signal to retreat, but as a potential entry point.

EDITED BY – Swasti Jain
{ STUDENT OF MANAGEMENT STUDIES AND INTERN AT HOSTELBEE}

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Table of Contents

1. A Parallel Economy in Plain Sight
2. From Family Firms to IPO Watchlists

A Parallel Economy in Plain Sight

When shoppers reach for a packet of namkeen, a bottle of packaged water or a gold necklace, they are often engaging with companies that rival publicly traded giants in scale yet remain largely invisible to stock market investors.

A new ranking, the JM Financial Hurun India Unlisted Gems 2026, casts light on 100 privately held Indian companies whose combined valuation stands at Rs 28.5 lakh crore an economic footprint larger than the gross domestic product of Finland. Together, these firms generated Rs 1.03 lakh crore in EBITDA in 2025, underscoring what the report describes as a “parallel economy” operating beyond the glare of public markets.

Their financial trajectory has been striking. Combined net profit nearly tripled in two years, rising from Rs 13,000 crore in 2023 to Rs 35,900 crore in 2025. Revenues expanded at a compounded annual growth rate of 15.2 percent over the same period growth that rivals many listed peers.

Unlike some heavily leveraged conglomerates, much of this cohort appears financially disciplined. Sixty-five of the 100 companies carry a debt-to-equity ratio below 1.0, and several operate debt-free. A median current ratio of 1.6 suggests comfortable short-term liquidity.

What stands out most, however, is their familiarity. Snack manufacturer Haldiram Snacks Food reported revenue of roughly Rs 14,000 crore in 2024 filings, placing it among India’s largest unlisted consumer goods players. Beverage bottler Hindustan Coca-Cola Beverages posted Rs 12,864 crore in revenue in 2025.

Jewellery retailer Malabar Gold and Diamonds, headquartered in Kozhikode, reported Rs 66,872 crore in revenue in 2025, making it the third-largest company on the list by topline. These are businesses embedded in everyday life on supermarket shelves, in wedding shopping districts and across television screens yet absent from stock exchange tickers.

Consumer goods leads the sectoral mix, accounting for 19 of the 100 companies, followed by construction and engineering with 12, and financial services with 11. The geographic spread extends beyond traditional corporate hubs. While Mumbai and Bengaluru host a significant share, nearly a quarter of the firms hail from tier-2 and tier-3 cities, signaling that scale is no longer confined to metropolitan India.

From Family Firms to IPO Watchlists

The age and ownership profiles of these companies reflect the breadth of India’s business ecosystem. The oldest firm on the list, Bennett, Coleman & Co., traces its roots back 187 years. At the other end is Tata Passenger Electric Mobility, just four years old and emblematic of India’s push into electric vehicles.

Half of the companies are family-run enterprises, many built over generations. The remainder are professionally managed firms or new-age ventures backed by institutional capital. Together, they employ millions and generate revenues that stretch into the lakhs of crores.

Some names frequently surface in conversations about potential public offerings including Bisleri International, Bikanervala Foods and Balaji Wafer. Yet for now, they remain privately held, operating with financial metrics comparable to listed peers but without the quarterly scrutiny of public markets.

Their continued absence from exchanges raises a broader question about the evolving nature of capital in India. With access to private equity, strategic investors and internal accruals, many of these firms have been able to scale without tapping retail shareholders.

In doing so, they have built an economic force that is both visible and hidden brands known to millions, balance sheets known to few. If the public markets are often seen as the face of corporate India, this cohort represents its powerful, quieter counterpart a constellation of unlisted giants shaping consumption, infrastructure and finance from behind the scenes.

EDITED BY – Swasti Jain
{ STUDENT OF MANAGEMENT STUDIES AND INTERN AT HOSTELBEE}

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Table of Contents

1. A Window Reopens as Rates Slide
2. The Math Behind the Decision

A Window Reopens as Rates Slide

After nearly three years of elevated borrowing costs, mortgage rates have dipped to levels that are prompting a familiar question in American households: Is it time to refinance?

According to Freddie Mac, the average 30-year fixed mortgage rate recently fell to 6.01 percent its lowest point since September 2022. The decline, while modest by historical standards, represents a psychological shift for homeowners who have been waiting for relief after rates surged past 7 percent in 2023 and 2024.

Analysts cited by Norada Real Estate Investments attribute the recent drop to easing inflation pressures and shifting economic expectations. When inflation cools and markets anticipate slower growth, bond yields often retreat and mortgage rates tend to follow.

The result has been swift. Refinance applications have more than doubled compared with the same period last year, according to Norada’s analysis, as homeowners who purchased or refinanced at higher rates begin to reconsider their options.

For borrowers carrying mortgages above 7 percent, the move closer to 6 percent can translate into significant savings. Depending on loan size and term, that shift could reduce monthly payments by several hundred dollars and lower total interest costs over the life of the loan.

Yet refinancing is rarely as simple as chasing a lower headline rate. The decision hinges not only on how far rates have fallen, but also on how long a homeowner plans to stay put and how much it will cost to secure the new loan.

The Math Behind the Decision

Refinancing comes with upfront expenses. Closing costs typically range from 2 to 6 percent of the loan amount, covering lender fees, appraisals, title insurance and other administrative charges. For a homeowner refinancing a $400,000 mortgage, that could mean paying anywhere from $8,000 to $24,000.

Financial planners often recommend calculating a “break-even point” the number of months it takes for monthly savings to offset those upfront costs. A commonly cited benchmark is 36 months or less. If it takes longer than three years to recover the expense, waiting for further rate declines or keeping the existing loan may make more sense.

Traditional advice once held that refinancing was worthwhile only if rates fell by one to two percentage points. But in today’s market, where loan balances are larger, smaller reductions can still yield meaningful savings. A drop of roughly 0.75 percentage points is often sufficient to reach a three-year break-even point, analysts say. Even a 0.50 percentage-point decline may justify refinancing in certain cases particularly for borrowers choosing shorter loan terms or low-cost refinancing programs.

Not all homeowners stand to benefit equally. Those who purchased homes during the recent rate peak locking in mortgages above 7 percent may see the greatest advantage. Others may use refinancing as an opportunity to eliminate private mortgage insurance if rising property values have pushed their equity above 20 percent.

But for homeowners who secured pandemic-era rates below 5 percent, the calculus looks different. Refinancing at today’s rates could increase monthly payments rather than reduce them, making patience the more prudent strategy.

Forecasts cited by Norada suggest mortgage rates could fluctuate between roughly 5.9 percent and 6.4 percent through 2026, with the possibility of modest declines later in the year. That range leaves homeowners in a narrow band of opportunity low enough to reopen the conversation, but not so low as to spark a refinancing boom on the scale seen in 2020 and 2021.

Ultimately, the choice to refinance remains deeply personal. It depends on household budgets, long-term plans and tolerance for upfront costs. For some, 6 percent may be the long-awaited signal to act. For others, it may simply mark another waypoint in a longer waiting game.

EDITED BY – Swasti Jain
{ STUDENT OF MANAGEMENT STUDIES AND INTERN AT HOSTELBEE}

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