5 Stocks that Smart Investors are Buying

Smart investors often know the business well. They study numbers, track cycles and try to spot change before it becomes obvious. Many other investors watch them closely, hoping to learn by observing where the smart money is moving. In a way, this is investing by standing on the shoulders of giants.

But even the best investors are still outsiders. They rely on disclosures, meetings and outcomes. The people who know the business most intimately are the promoters. Their wealth is not just invested in shares. It is tied to years of decisions on capital allocation, operational priorities and how the company is run through good times and bad.

A company can be doing many things right. The business may be improving and smart investors may be increasing their exposure. Even then, outcomes are shaped by promoter behaviour. Promoters decide how much risk to take, where to deploy capital and whether to play for the next quarter or the next decade.

That is why watching smart investors makes sense. But understanding the promoter matters even more. In the long run, it is the people running the business who determine how much value is created.

#1 Tatva Chintan Pharma Chem

First on our list is Tatva Chintan Pharma Chem.

Tatva Chintan Pharma Chem focusses on niche chemistry platforms rather than high-volume products. After a difficult phase for the sector, the business has begun to show signs of recovery.

That shift has reflected in investor behaviour. Mukul Mahavir Agrawal has increased his exposure to the company over the past few quarters. His stake rose from 1.3% in the June 2025 quarter to 2.1% by the September 2025 quarter.

Tatva Chintan operates across phase transfer catalysts, structure directing agents, electrolyte salts and pharma and agro and specialty chemicals.

In recent quarters, the company's structure-directing agents have emerged as the key growth driver. This comes on the back of demand linked to emission norms and hybrid vehicle platforms. The company has also been building its electrolyte salts and semiconductor chemicals segments.

The company's Q2FY26 revenue grew 48% year on year, supported by higher volumes and a better product mix. EBITDA margins expanded as operating leverage kicked in and utilizations picked up, after a long period of under-absorption. The management has indicated that margins are still a function of plant occupancy and customer ramp-ups rather than steady-state performance.

Going forward, the company will focus on capacity additions and the commercialization of new products. A new plant block is to become operational in January 2026 onwards. This should ease bottlenecks and support volume growth. Capex is being funded through internal accruals, with no near-term balance sheet stress.

At current levels, the stock trades well above to its long-term median valuation.

To know more about the company, check out its financial factsheet and latest quarterly results.

#2 GHCL

Next on the list is GHCL.

GHCL operates in a business where prices decide outcomes. Soda ash is a commodity, shaped by global supply, imports and cost discipline. Over the past year, the cycle has turned unfavourable, with pricing under pressure even as domestic demand has held up.

That has not stopped selective investors from increasing exposure. Dolly Khanna has increased her stake in the company. After acquiring about 1.0% in the March 2025 quarter, taking her exposure to around Rs 615 m , her stake rose to roughly 1.2% by the September 2025 quarter, with the value increasing to about Rs 673 m.

GHCL's business primarily revolves around soda ash, with smaller contributions from downstream products. Management has been controlling costs to increase efficiency throughout the cycle. This has helped cushion profitability to a certain extent.

GHCL's H1FY26 revenue fell 7% year on year as soda ash realizations fell. EBITDA margins were lower at around 27%, as pricing pressures outweighed efficiency gains. Management has been clear that margins at this stage are driven more by global supply conditions and import intensity than by domestic demand.

What matters next is diversification. Bromine and vacuum salt projects are nearing commissioning and are expected to start contributing from late FY26, with a more meaningful impact in FY27. These investments are being funded through internal cash flows, supported by a net cash balance sheet.

The stock trades at 9 times earnings, close to its long-term median valuation.

To know more about the company, check out its financial factsheet and latest quarterly results.

#3 Southern Petrochemical Industries Corporation

Third on our list is Southern Petrochemical Industries Corporation.

Southern Petrochemical Industries Corporation makes fertilisers and allied chemicals. This business is shaped by regulation, input costs and plant uptime. Over the past few years, the company has focused on fixing operations rather than expanding aggressively.

That effort has started to reflect in investor behaviour. Dolly Khanna has steadily increased her holding in the company from about 1.7% in the June 2025 quarter to nearly 3% by the September 2025 quarter. The value of her holdings also moved up over this period.

SPIC's core business is neem-coated urea. This is supported by ammonia production and downstream chemical operations. During FY25, the company shifted to natural gas-based operations, thereby reducing dependence on fuel oil and improving plant reliability. The company has also been working on modernising its urea plant to improve energy efficiency and output.

In FY25, SPIC reported a 59% revenue growth, driven by higher urea production and improved utilisation levels. EBITDA margins came in weaker at about 9.6%. Margins in this business continue to depend more on gas availability and subsidy timelines than on pricing power.

Going ahead, SPIC is progressing with its urea modernisation project. This will raise capacity from about 0.76 million tonnes to 0.91 million tonnes per annum. The project is expected to be commissioned by July 2026.

Presently, the stock trades close to its long-term median valuation.

To know more about the company, check out its financial factsheet and latest quarterly results.

#4 Yatharth Hospitals

Fourth on our list is Yatharth Hospitals.

Yatharth Hospitals operates a network of multi-speciality hospitals. The company has an increasing focus on super-speciality treatments. It has steadily expanded capacity while improving occupancy and average revenue per occupied bed. Management has focused on improving case mix and ramping up newer hospitals without relying on aggressive pricing.

Over the past few quarters, the company's steady operating performance has begun to attract the attention of patient investors.

Two well-known investors have entered the stock over the past year. Mukul Mahavir Agrawal picked up a stake of about 1.14% in the June 2025 quarter, marking his first disclosed entry into the company. This was followed by Vijay Kedia, who bought close to a 1.0% stake in the September 2025 quarter. Both were fresh entries rather than marginal increases.

In H1FY26, Yatharth's revenue grew 25% year on year, on the back of higher occupancy and better realisations. EBITDA margins came in at about 24% in H1FY26, as newly commissioned hospitals led to higher staffing costs and initial operating losses. Management has indicated that this margin pressure is linked to expansion and should ease as newer facilities mature.

Looking ahead, costs are to stay elevated as hiring and technology investments continue. The benefits are expected to show up over time. The company has outlined a capex plan of about Rs 14-15 bn to be deployed over the next four to five years, funded largely through internal accruals and balance sheet strength.

At current levels of 40 times earnings, the stock trades close to its long-term median valuation, even as operating execution remains steady.

To know more about the company, check out its financial factsheet and latest quarterly results.

#5 Geojit Financial Services

Last on our list is Geojit Financial Services.

Geojit Financial Services sits quietly in the background of India's investing ecosystem. It performs the simple task of brokering, wealth management and financial product distribution. Yet, in recent quarters, something interesting has happened. The company has been attracting the attention of patient investors.

Rekha Jhunjhunwala continues to hold a 7.2% stake in Geojit. This holding has been steady across recent quarters. In the December 2025 quarter, another well-known value investor, Porinju V Veliyath, entered the shareholding register. He bought a 1.4% stake, marking a new entry into the stock. When investors of this kind step in, they usually do so after the stock has fallen out of favour and expectations are already low.

Geojit Financial Services operates across equity broking, mutual fund distribution, portfolio management and wealth advisory services. The company earns a large part of its revenue from distribution and advisory activities, which tend to be steadier than pure trading income. Its focus has been on growing client assets and deepening engagement through digital platforms.

Geojit's H1FY26 revenue growth fell, as industry trading volumes softened. Operating margins were lower from 38% in FY25 to 27% as the company stepped up spending on technology, compliance and talent.

In the future, management is asking investors for patience. Costs will stay high as the company continues to hire and spend on technology. The benefits will show up later, not immediately. Till then, earnings will largely mirror how active the markets are. The company's capex requirements are limited and to be funded through internal accruals.

Presently, the stock trades at 17 times earnings, a premium to its long-term median valuation.

To know more about the company, check out its financial factsheet and latest quarterly results.

Conclusion

Even in markets where prices look stretched, certain types of businesses tend to hold their ground. These are the fundamentally strong businesses that can offer an anchor when sentiment shifts. Thus, it reminds investors that value is built over time. The most important thing is to look past the noise and focus on quality.

Watching smart investors helps. Understanding the business matters more. And paying attention to the people running the company matters most of all. Over long periods, it is this combination that quietly turns good companies into enduring wealth creators.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...