He’s known to hold for the long haul. So why did Mukul Agrawal exit these 3 stocks? – Stock Insights News

Mukul Agrawal trimmed his portfolio in the March quarter, exiting three companies where he earlier held over 1% stake. For someone who usually takes a long-term view, such exits tend to draw attention.

But moves like these don’t always mean something’s wrong. Sometimes it’s about valuation, or just making room for other ideas. Still, if you track his portfolio or hold any of these names, it’s worth understanding what’s changed—if anything.

Let’s take a closer look at each of the companies to see what might have prompted the decision.

CEAT is the flagship company of the RPG group. It is among India’s leading tyre manufacturers, with strong brand recall. It manufactures tyres, tubes, and flaps, for wide range of vehicles—from heavy-duty trucks and buses to cars, scooters, and tractors.

It caters to the original equipment manufacturers (OEM) and replacement markets. The company’s revenue share from the replacement market has remained relatively high over the past few years.

As of Q4FY25, 53% of CEAT’s revenue came from the replacement market, while OEMs contributed 28% and exports made up the remaining 19%.

CEAT revenue increased 11% from last year to ₹132.2 billion, while net profit declined 25% to ₹6.4 billion as margins decreased 269 basis points to 11.3%. The increase in raw material costs impacted margins.

In response, the company is moving away from low-margin segments such as trucks, buses and light commercial vehicles (LCVs). It plans to focus more on passenger cars, utility vehicles, other heavy transport and 2W segments, which are more margin-accretive. This is expected to boost profitability in the future.

As of December 2024, investors Mukul Agrawal held a 1.1% stake. But his name no longer appeared in the March quarter, suggesting a likely exit or a reduction below the 1% disclosure threshold.

The company trades at a P/E multiple of 32x, which is at 200% premium to the 10-year median of 16x.

CEAT Share Price

Looking ahead, the company is facing muted demand due to an auto sector slowdown. CEAT expect to tap into rural demand better, especially for 2W, and farm tyres, due to their extended distribution network.

It is also prioritising exports, with European Union, Middle East, and Southeast Asia– identified as growth regions. These international operations are margin-accretive and are expected to play a major role going forward.

CEAT aims to maintain 20% to 25% market share in both 4-wheeler and 2-wheeler electric vehicle going forward, supported by visibility on new vehicle launches.

Established in 2003, Ethos has grown into one of India’s leading retailers of luxury watches. It offers a curated selection of over 73 premium and luxury brands through boutiques spread across 26 Indian cities.

Ethos has exclusive partnerships with luxury watchmakers, including Speake-Marin and Favre Leuba, Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, and Tissot, strengthening its position as a leading player in India’s luxury watch and lifestyle segment.

The demand for the company’s product is directly proportional to the number of high-net-worth individuals. The company is a market leader with a 70% share in India’s luxury and high-luxury watch sales.

The average selling price per watch has consistently increased, from ₹84,000 in FY20 to ₹204,000 in FY25. During the same period, its revenue has grown at a compounded annual growth rate of 22%, from ₹4,600 million to ₹1,250 million in FY25.

Revenue grew by 25% from last year in FY25, led by a rise in market share, a 25% increase in total billings, and a 7.4% increase in average selling price. Profit has grown at 113% CAGR from ₹47 million in FY21 to ₹960 million in FY25, up 15.6% from FY24.

The company was loss-making in FY20. Profitability improved, led by consistent margin expansion, from 11.7% in FY20 to 16.8% in FY25.

Ethos is trading at a price-to-equity multiple of 71x, in line with its 3-year median of 70x. The valuation has fallen from 89x in November 2024. The high valuations may have prompted Mukul Agrawal to reduce his stake.

Ethos Share Price

He held 1.23% stake as of December 2024, but his name no longer appeared in the March quarter shareholding data, suggesting a likely exit or a reduction below the 1% disclosure threshold.

Looking ahead, the company reiterated its long-term vision, stated at the time of its listing, to grow revenue 10x over the next 10 years. To pursue this growth, the company plans to add new brands and expand its retail footprint. It has 73 stores in 26 cities and plans to have 100 by FY26.

It is also expanding its store count, including into underserved cities, to keep the growth momentum intact. This includes not only opening new stores, but also adding additional luxury product categories to diversify our offerings.

To this end, it launched the first international luxury jewellery boutique, Messika, which offers higher margins than watches. In addition, it has forayed into the luxury luggage market through Rimowa and plans to expand its presence gradually.

Quick Heal is a leading global cybersecurity solutions provider and has been the only Indian listed-player focused solely on cybersecurity for over three decades. It provides end-to-end security solutions across the B2C, B2B, and B2G segments.

The company has a diversified presence in over 70 countries and is the market leader in India. It holds nine patents and multiple international certifications, offering a wide range of products catering to both consumer and enterprise needs.

For consumers, it offers antivirus, internet security, and total security packages that ensure protection against viruses, malware, and cyber threats. On the enterprise side, its brand Seqrite is India’s only full-stack enterprise cybersecurity solutions provider.

Quick Heal’s revenue fell 4% to ₹2.8 billion in FY25 over the previous year. At the same time, profit declined nearly 79% to ₹0.05 billion, as margins turned negative at -6.6%, compared to a positive of 17.6% in FY24. Growth has been slow due to delays in government deals and constraints in the consumer business.

Enterprise revenue remained flat at ₹1.21 billion, contributing 40% of overall revenue, while consumer revenue fell 9% to ₹1.86 billion, making up the remaining 60%. Within the enterprise, 69% of revenue comes from the non-cloud segment, while 31% from the cloud business. The cloud business is growing rapidly, with a 47% CAGR in 2 years.

As profitability dropped, the company’s P/E multiple jumped to 309x, 15 times higher than the 10-year median of 20x.

This may explain why ace investor Mukul Agrawal reduced his exposure. He held 1.3% stake as of December 2024, but his name no longer appeared in the March quarter, suggesting a likely exit or a reduction below the 1% disclosure threshold.

Looking ahead, the company has outlined three growth levers. While, it is currently focused on the Indian market, it is setting the foundation for global expansion. It also plans to launch niche solutions targeting large enterprises and expand product coverage with new launches.

The broader cybersecurity market offers room for optimism. According to Quick Heal’s Q3FY25 investor presentation, the serviceable market is expected to more than double from ₹18 billion in FY25 to ₹40 billion by FY27.

Quick Heal Share Price

Conclusion

Among the three, Quick Heal appears the weakest link. A sharp 79% drop in profits, negative margins, and delays in key contracts suggest near-term pain. The stock now trades at over 300x earnings, far above its long-term average—making the valuation hard to justify.

In contrast, Ethos and CEAT still show growth drivers. Ethos is expanding its luxury portfolio, while CEAT is pivoting towards higher-margin and export segments. Mukul Agrawal’s exits might reflect a tactical reshuffle rather than a vote against long-term potential. But for Quick Heal, the exit likely signals concern around execution and profitability.

Disclaimer:

Note: Throughout this article, we have relied on data from and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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