Ace investor Mukul Agarwal has maintained positions in two small-cap stocks for an extended period, with both companies delivering triple-digit compounded profit growth over five years. According to reports from The Financial Express, these stocks are currently trading within touching distance of their respective book value and remain well below their all-time highs. The combined holding value stands at ₹176 crore in Agarwal's current ₹7,720 crore portfolio, representing approximately 2.2% of his total investments. Recent developments show Agarwal has made bold moves that have the investment community buzzing, with reports indicating he just bought over 10% stakes in these positions, demonstrating his continued confidence in these beaten-down smallcaps.
Capacite Infraprojects reported mixed Q1 FY27 results on August 7, 2026, with consolidated revenue rising 7% to ₹629 crore compared to ₹589 crore in the previous year. However, profit after tax declined to ₹40 crore from ₹47 crore, leading to a 5% stock decline on the day. As reported by The Financial Express, the company maintains a robust order book of ₹13,535 crore against FY26 sales of ₹2,623 crore, resulting in a book-to-bill ratio of 5.2 times. Agarwal holds a 6.6% stake worth ₹119 crore in the company, which trades at approximately 0.95 times book value.
West Coast Paper Mills, founded in 1955 and run by the SK Bangur group, reported 115% compounded profit growth over five years despite recent earnings volatility. According to The Financial Express, the stock has risen 135% over five years from around ₹255 in August 2021 to ₹599 as of August 7, 2026. The recent surge is primarily driven by policy developments, as the Directorate General of Trade Remedies recommended anti-dumping duties of up to US$376 per tonne on virgin multi-layer paperboard from Indonesia for five years. Agarwal holds a 1.4% stake worth ₹57 crore in the company, which trades at a PE ratio of 26x against the industry median of 17x.
The Indian Paper Manufacturers Association (IPMA) has urged the government to immediately impose anti-dumping duty on imports of Virgin Multi-Layer Paperboard from Indonesia, citing losses of ₹242 crore suffered by domestic manufacturers due to low-priced imports. According to Upstox, the IPMA stated that imports rose sharply from just 296 tonnes in FY2021-22 to 62,935 tonnes in FY2024-25, while CIF import prices fell by 25% during the same period. While paper stocks like Andhra Paper and JK Paper jumped nearly 2% and 1.4% respectively, West Coast Paper and Tamil Nadu Newsprint & Paper plunged as much as 7% on Thursday. The urgency has increased with the Minimum Import Price (MIP) set to expire on September 30, 2026.
