Maverick Investor Siddhartha Bhaiya Warned of indian Equity Risks Before Untimely Death
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A renowned value investor and small-cap specialist, Siddhartha Bhaiya, recently voiced concerns about Indian equity valuations shortly before his passing on December 31st.
Siddhartha Bhaiya, former Managing Director and CIO of Aequitas Investment, was known for identifying opportunities in the U.S., China, and Europe. His unexpected death, following a cardiac arrest while on holiday in New Zealand, has deeply impacted the investing community.
Shifting Focus from India to Global Markets
In his final views, bhaiya expressed a lack of “valuation comfort” in the Indian markets. He believed better risk-adjusted opportunities existed elsewhere, specifically highlighting non-tech themes in the U.S., consumption-led plays in China, and defensive sectors in Europe. “As I said, we currently do not find valuation comfort in the Indian markets. However, we do see some good opportunities in international markets,” Bhaiya stated in a recent interview with PMSBazaar.
He did not detail specific investments, but his overall strategy signaled a move away from the rapidly expanding indian market. This shift came after a long and successful career identifying undervalued companies.
A Contrarian Investor and Gold Advocate
Bhaiya was celebrated as a contrarian investor with a keen eye for small-cap multibaggers. he was also a strong advocate for gold as a safe-haven asset. in recent months, he significantly reduced his equity exposure, reallocating capital to gold ETFs. By November, approximately 81.5% of his Rs 4,000 crore fund was invested in gold, reflecting a growing concern about market risk.
his decision to reduce equity holdings was driven by three key factors: stretched valuations, widespread market euphoria, and corporate governance concerns.He emphasized the importance of a bottom-up approach, focusing on individual businesses, valuation, and growth prospects. “We remain keen observers of market trends and note that current valuations appear quite rich. Nonetheless of market corrections, our approach remains bottom-up-focused on individual businesses, valuation comfort and growth prospects,” he explained.
Focus on Individual Valuations Over Market Ratios
Bhaiya believed that assessing the valuations of individual holdings was more crucial than relying on broad market price-to-earnings ratios. He specifically cautioned against the premium valuations of Indian small-cap stocks, arguing there was limited justification for continued investment amidst the growing excitement surrounding Indian capital markets.
A Legacy of Remarkable Returns
The chartered accountant-run PMS achieved top performance in 2025, a testament to BhaiyaS investment acumen. He was renowned for identifying companies that delivered unusual returns. His most notable successes included Avanti Feeds, which generated nearly 100x returns, and Apar Industries and Sanghvi Movers, which yielded 50x gains.
Numerous other holdings experienced substantial growth: JSL, GAEL, HEG, Finolex Cables, and TIIL all became 20-baggers, while HIL, Garware, CCL Products, Cosmo First, Maithan Alloys, Nilkamal, and Power Mech Projects each delivered over 10x returns.
Bhaiya’s passing marks a notable loss for the investment community, but his disciplined approach and focus on fundamental value will undoubtedly continue to inspire investors for years to come.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
