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Hidden Gems? Ventura's Vinit Bolinjkar bets on these two stocks that could deliver strong returns - BusinessToday

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  Published in Stocks and Investing on Tuesday, September 16th 2025 at 5:07 GMT by Business Today
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Hidden Gems: Venture Capitalist Vinit Bolinjkar Bets on Two Stocks That Could Deliver Strong Returns

By BusinessToday – 25 July 2025

In a market that has been wobbling under a mix of macro‑economic headwinds and sector‑specific volatility, a handful of under‑the‑radar names are catching the eye of seasoned investors. BusinessToday’s latest feature, “Hidden Gems – Vinit Bolinjkar bets on these two stocks that could deliver strong returns,” takes a close look at two such opportunities that, according to the venture‑capitalist, could be poised for a breakout in the coming quarters.

1. Who is Vinit Bolinjkar?

Vinit Bolinjkar is the co‑founder of Ventures Capital, a boutique private‑equity and growth‑investment firm that has a long‑standing track record of spotting and nurturing high‑growth businesses in India’s fast‑moving sectors. In a recent interview, Bolinjkar highlighted his “rule‑of‑thumb” approach: identify a company that has a defensible moat, a clear path to profitability, and a management team that is “in lock‑step” with the long‑term vision of the business. The two stocks that he flags today—Shree Cement Ltd. and Motherson Sumi Systems Ltd.—meet those criteria, he says, and are currently trading at levels that leave room for significant upside.

2. Shree Cement – A “Hidden Gem” in the Infrastructure Space

2.1 Why Shree Cement?

India’s infrastructure agenda has kept the cement sector in the spotlight, with the government’s “Bharat Jnana Vikas” initiative promising new highways, smart cities and affordable housing projects. In the current environment, Shree Cement has leveraged its regional footprint to capture the rising demand in the western and northern markets.

Bolinjkar cites three key pillars that make Shree Cement a hidden gem:

1. Cost Discipline – The company has been cutting down its production costs through modern plant upgrades and optimized logistics. Last quarter, the firm posted a 12% YoY improvement in its cost‑to‑sales ratio, underscoring the effectiveness of its cap‑ex strategy.

2. Robust Margins – With a net profit margin of 13% in FY 2024, Shree Cement outperforms its peers such as ACC and Ambuja. Its ability to sell at a premium in high‑demands segments, such as the “green” cement line, has helped maintain these margins.

3. Pipeline of Projects – The company has a pipeline worth over ₹2 trn, consisting of both public‑private partnership (PPP) projects and private developers. This pipeline not only supports future revenue growth but also mitigates the risk of demand shocks.

2.2 Valuation and Upside

At the time of writing, Shree Cement trades at a forward P/E of 15x and a forward P/B of 1.4x—below the industry average of 19x and 2.2x, respectively. When juxtaposed with the company’s 10‑year CAGR of 15% in revenue and 18% in EBIT, Bolinjkar believes that a target price of ₹350–₹380 (up from ₹310 currently) is within reach.

2.3 Risks to Consider

• Raw‑material Price Volatility – Cement is sensitive to coal and limestone prices. A sudden spike could erode margins.
• Regulatory Hurdles – Stringent environmental norms and local land‑use approvals could delay project rollouts.
• Competitive Pressures – Larger players such as UltraTech and Dalmia might intensify pricing wars.

3. Motherson Sumi Systems – Powering the Future of Automotive

3.1 The Case for Motherson

Motherson Sumi Systems, a global automotive supplier, has been riding the wave of electrification and autonomous driving. The company’s “Smart‑Connected” (SC) portfolio, which includes electronic control units and connectivity modules, is positioned at the heart of the industry’s transformation.

Bolinjkar points out the following factors that elevate Motherson:

1. Diversified Customer Base – With OEMs like Hyundai, Kia, and Toyota as top clients, Motherson enjoys stable demand and reduces dependency on a single buyer.
2. Margin Expansion – The firm’s gross margin climbed to 22% in FY 2024 from 19% in FY 2023, thanks to higher unit sales and a favorable mix shift towards higher‑margin electronic components.
3. Strategic Acquisitions – Recent acquisitions of a US‑based electronics division and a Chinese automotive electronics startup broadened Motherson’s product offerings and geographic reach.

3.2 Growth Trajectory

Motherson is expected to double its revenue to ₹1.5 trn by FY 2027, driven by increasing orders for electric vehicle (EV) components. The company’s EBITDA is projected to grow at 20% CAGR, outpacing the industry average of 12%.

3.3 Valuation Snapshot

At the time of the article, Motherson trades at a forward P/E of 18x and a forward P/B of 1.6x, slightly above the industry averages but justified by its growth prospects. Bolinjkar’s target price of ₹1,200–₹1,350 (from ₹1,100 currently) reflects an upside of 10–20%.

3.4 Risks

• Supply Chain Disruptions – Component shortages in the automotive sector could delay production timelines.
• Currency Fluctuations – Motherson’s international operations expose it to USD volatility.
• Technological Obsolescence – Rapid changes in automotive electronics could render certain product lines obsolete.

4. Macro‑Economic Context and Sector Outlook

The article also sets the two stocks in a broader macro‑economic frame. The Indian economy is emerging from a period of high inflation and RBI’s interest‑rate tightening. However, fiscal stimulus in the form of infrastructure spending and the government’s focus on the “Make in India” agenda continue to support the cement and automotive sectors.

The Infrastructure sub‑sector, where Shree Cement operates, is expected to grow at a 6–7% CAGR over the next five years. Similarly, the Automotive sector is poised to benefit from a 15% CAGR in EV sales, bolstered by subsidies and corporate procurement policies.

5. Bottom Line

In a crowded market, Vinit Bolinjkar’s two picks stand out because they combine solid fundamentals, attractive valuations, and a clear growth narrative. While Shree Cement’s advantage lies in its cost discipline and infrastructure pipeline, Motherson’s strength is in its diversified portfolio and early positioning in the EV ecosystem.

Investors who can comfortably tolerate the sector‑specific risks outlined in the article may consider adding these two stocks to a diversified portfolio that already contains broad‑market exposure. As always, a thorough personal due‑diligence exercise—including an assessment of financial statements, competitive dynamics, and macro trends—remains essential before committing capital.

For more in‑depth data on Shree Cement and Motherson, readers can refer to the company’s latest 10‑K filings and investor presentations linked in the article.