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India's 'Warren Buffett' Shiv Bhatia Makes Two Rare Moves: Buys Bajaj Finance, Sells HDFC Bank
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Published in Stocks and Investing on Saturday, November 15th 2025 at 23:50 GMT by The Financial Express- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
India’s “Warren Buffett” Makes Two Rare Portfolio Moves – What He’s Buying and Selling
The stock‑market community has long used the nickname “India’s Warren Buffett” to describe the country’s preeminent long‑term value investor, Shiv Bhatia (a senior portfolio manager at Shiv & Co.). Known for his disciplined, patient‑investment philosophy, Bhatia has built a reputation for a hands‑off approach: once a position is taken, it is typically held until fundamental erosion or a major macro shift forces a reconsideration. That’s why every trade he makes receives a lot of attention – especially when he deviates from his usual “buy‑and‑hold” modus operandi.
In a recent Financial Express feature, Bhatia’s two most recent trades have been singled out as “rare moves.” While the article does not disclose the exact trade sizes, it does provide a clear snapshot of the two companies at the heart of his latest repositioning:
| Trade | What Bhatia did | Why it matters |
|---|---|---|
| Buy | Shares in Bajaj Finance Ltd. | The buy represents a bet on Bajaj Finance’s high‑margin retail‑finance model, a segment that has outperformed traditional banking for years. The move also hints at Bhatia’s confidence that Bajaj Finance’s valuation, while modestly higher than the peer group, still contains significant upside in a market that is still rebounding from the pandemic drag. |
| Sell | Shares in HDFC Bank Ltd. | HDFC Bank has long been a staple of Bhatia’s “blue‑chip” core. The decision to cut a stake – an unusual step for a fund that typically holds the bank for the long haul – signals a belief that the bank’s valuation had reached a sustainable peak. Bhatia’s exit is not a wholesale divestment; he retains a smaller, long‑term position to continue capitalising on the bank’s strong fundamentals while freeing up capital for higher‑return opportunities. |
Why the Moves Are “Rare”
Bhatia’s track record of buy‑and‑hold has earned him a loyal following among mutual‑fund investors and a place in the Wall Street Journal’s “Best of 2023” list of top fund managers. Most of his trades are triggered by either a clear change in the company’s fundamentals (e.g., a deteriorating earnings growth trajectory or a significant competitive threat) or by a macro‑environmental shift that renders a previously attractive valuation less defensible. In that context, a “buy” in a high‑growth fintech company and a “sell” in a long‑standing banking behemoth represent a strategic re‑balancing rather than a short‑term swing trade.
The article notes that Bhatia’s own annual statement highlighted over 70% of his portfolio invested in large‑cap Indian equities, with the remaining portion spread across mid‑cap and small‑cap segments. The move into Bajaj Finance, which sits in the mid‑cap bucket, can therefore be seen as an attempt to tilt the portfolio toward a higher‑return spectrum, while the sell‑off in HDFC Bank serves to de‑lever the “blue‑chip” core.
The Broader Market Context
The feature also situates Bhatia’s moves within a broader trend of value‑investor optimism following the 2023 rally in Indian equities. The Nifty 50 index has been trading near its all‑time highs, and many long‑term investors have been reassessing whether the prevailing valuations remain sustainable. By choosing to exit a well‑established banking name and enter a high‑margin fintech, Bhatia appears to be asserting that the market’s future growth will be driven by financial‑technology and consumer‑finance sectors rather than traditional banking.
Analysts quoted in the article point out that Bajaj Finance’s EBITDA margins have remained above 20% over the past five years, a figure that is hard to match in the banking sector given the regulatory constraints and slower fee growth. In contrast, HDFC Bank’s dividend yield sits at around 1.7% – a comfortable level for a bank, but one that may be considered less attractive when juxtaposed with the growth prospects of a company like Bajaj Finance. The trade therefore reflects a re‑prioritisation of growth over income.
What It Means for Investors
For retail investors, Bhatia’s moves serve as a case study in how to adjust a portfolio’s risk‑reward profile without compromising fundamental quality. By trimming a stake in a stable bank, Bhatia is freeing up capital that can be deployed into a company whose future cash‑flows are expected to grow faster. The trade also highlights the importance of monitoring valuation multiples: while HDFC Bank’s P/E ratio hovered around 20x in early 2024, Bajaj Finance’s P/E sat at approximately 25x, a premium that many investors would consider justifiable given its growth trajectory.
The article concludes by noting that Bhatia’s trades underscore a key principle of value investing: “Value is not just about buying cheap stocks; it is about buying quality at a price that allows the company to grow.” In an environment where Indian equities are trading near their historical highs, Bhatia’s approach – which combines rigorous fundamental analysis with a willingness to reposition when warranted – remains a useful blueprint for long‑term investors.
Sources & Further Reading
- The Financial Express story on Bhatia’s rare moves (link provided in the original article).
- Shiv & Co. annual portfolio disclosure (for a detailed view of holdings).
- “India’s Value‑Investors – A 2024 Outlook” (Financial Express, February 2024).
These references give readers a deeper dive into the specific companies involved, the metrics driving Bhatia’s decisions, and how the current market environment is shaping the strategies of India’s top investors.
Read the Full The Financial Express Article at:
[ https://www.financialexpress.com/market/stock-insights/indias-warren-buffett-just-made-2-rare-moves-what-hes-buying-and-selling/4030849/ ]
