As the investment community begins to chart its course for the upcoming year, the focus is increasingly shifting towards identifying opportunities that promise substantial returns in 2026, while with 2025 drawing to a close, market participants are meticulously crafting their watchlists, and amidst this strategic planning, certain stocks held by India's most revered 'super investors' have emerged as compelling contenders. These include selections from the esteemed portfolios of Radhakishan Damani, Rekha Jhunjhunwala, and Nemish. Shah, all of whom are known for their astute market insights and long-term investment philosophies.
The Strategy of Deep Value Investing
What makes these particular stocks stand out is their current valuation. They aren't merely underperforming; they're trading at significant discounts, ranging from 40% to an astonishing 80% below their respective all-time or 52-week highs. This substantial correction places them firmly in the 'deep value' category, a space often favored by seasoned investors who seek out fundamentally sound companies that are temporarily out of favor or facing short-term headwinds. The premise is simple: acquire quality assets at a bargain price, anticipating a future rebound as market sentiment or company fundamentals improve. The current market dynamics, coupled with the backing of these investment stalwarts,. Suggest that these stocks could be poised for a significant turnaround in 2026.
BF Utilities: Radhakishan Damani's Infrastructure Play
BF Utilities, a company established in 2000, operates primarily in the critical sectors of windmill-based power generation and infrastructure development, while with a market capitalization of approximately 2,196 crore rupees, it represents a focused play on India's growing energy and infrastructure needs. Legendary investor Radhakishan Damani has held a significant stake of about 1% in the company since June 2020, signaling his long-term conviction in its potential. Despite some recent challenges, where the company's sales and EBITDA have shown weakness, its net profit has demonstrated remarkable resilience, growing at a Compound Annual Growth Rate (CAGR) of 39% over the last five years. This divergence suggests effective cost management or the realization of profits from specific projects, even amidst broader revenue pressures.
The stock's journey reflects a volatile but potentially rewarding path. From a price of 290 rupees in 2020, it has appreciated to 583 rupees currently. However, its true 'deep value' appeal lies in its current trading levels relative to its peaks. BF Utilities is presently trading 46% below its 52-week high of 1080 rupees and a staggering 78% below its all-time high of 2628 rupees. This substantial discount, combined with Damani's continued holding, positions it as an intriguing, 'quite cheap' infrastructure play. For investors looking towards 2026, betting on a revival in the infrastructure sector and the company's underlying profitability.
Tata Motors PV: Rekha Jhunjhunwala's Strong Turnaround Story
Tata Motors' Passenger Vehicle (PV) unit stands as a formidable entity within India's automotive landscape, boasting a market capitalization of 1. 27 lakh crore rupees, while this segment is a key player among the country's large auto companies, known for its diverse product portfolio and expanding market presence. Rekha Jhunjhunwala, a prominent investor, has maintained a 1, while 4% stake in this unit since December 2022, indicating her confidence in its ongoing recovery and future prospects. The company has indeed showcased an impressive turnaround in recent years, moving past previous challenges to demonstrate strong financial health.
The financial metrics underscore this strong recovery, while the net profit has surged at a remarkable 37% CAGR, complemented by accelerated growth in both sales and EBITDA. This comprehensive improvement reflects successful strategic initiatives, including new model launches, enhanced operational efficiencies, and a growing consumer preference for its vehicles. From a share price of 108 rupees in 2020, the stock has climbed Importantly to 345 rupees, while yet, it still offers considerable upside, trading 28% below its 52-week high of 480 rupees and 52% below its all-time high of 712 rupees. This blend of strong fundamental recovery and a substantial discount from peak valuations makes Tata Motors PV a compelling 'strong turnaround' candidate in Rekha Jhunjhunwala's portfolio, attracting attention for its potential in 2026.
Zodiac Clothing, established in 1984, is a well-known name in the. Premium men's apparel segment, managing three distinct brands: Zodiac, ZOD, and Z3. These brands cater to a discerning clientele, offering a range of high-quality menswear. Veteran investor Nemish Shah has held a 1. 6% stake in the company since 2015, a long-term commitment that suggests a deep-seated belief in the brand's intrinsic value, despite its recent financial struggles. The company's financial condition has indeed been challenging, marked by a continuous decline in both EBITDA and overall profitability, while this consistent downward trend indicates significant operational or market-related pressures that have impacted its performance.
Zodiac Clothing: Nemish Shah's High-Risk, High-Reward Venture
The stock's performance reflects these difficulties. While it traded at 103 rupees in 2020, it's currently at 87 rupees, indicating a decline over this period, while more strikingly, Zodiac Clothing is trading a massive 80% below its all-time high of 455 rupees. This profound correction positions it squarely in the 'high-risk, high-reward' category. For investors with a higher risk appetite and a long-term perspective, Nemish Shah's continued conviction in Zodiac Clothing, despite its current woes, could signal a potential for a dramatic rebound if the company manages to navigate its challenges and revitalize its brands. Its deep discount makes it an attractive, albeit speculative, option for those seeking substantial gains in 2026.
Why These Stocks Could Make a Mark in 2026
The common thread binding these three diverse stocks isn't just their current undervaluation but also the unwavering support from some of India's most astute investors. Radhakishan Damani, Rekha Jhunjhunwala, and Nemish Shah are known for their meticulous research and long-term vision, often identifying value where others see only risk. Their continued presence in these companies' shareholding patterns lends significant credibility and suggests that these stocks possess underlying strengths or turnaround potential that might not be immediately apparent to the broader market. The 'deep value' characteristic implies that much of the negative news or challenges might already be priced into the stock, leaving substantial room for appreciation if even minor improvements occur.
Because of this, despite their individual challenges—be it BF Utilities' weak sales but strong profits, Tata Motors PV's journey from recovery to growth, or Zodiac Clothing's significant financial headwinds—these companies are strong contenders for inclusion in many investors' 2026 watchlists. Their current trading levels, combined with the endorsement of these investment titans, present a compelling narrative for potential outperformance in the coming year, offering a blend of stability, growth, and speculative upside for those willing to look beyond the immediate horizon.
