Selected Indian Stocks Aligned with Coffee Can Investing

‘Coffee Can Investing’ strategy is an age-old compounding long-term investment approach in equities, emphasising quality stocks with sustainable competitive advantages and holding them for extended periods, typically 10 years or more, with utmost patience. It’s like the ‘buy right and sit tight’ concept or simply buy & forget without frequent short/mid-term trading (exit/re-entry, etc.). This is a compounding investing strategy- buying a piece of land in a developing place and holding it for the next 10-20 years without enquiring about the price every other day- to get a phenomenal return. The iconic investing strategy came from the age-old household practice of stashing valuable items in a coffee can and forgetting about them, allowing time and compounding to work their magic, popularised in the U.S. by one of the legendary investors, Robert G. Kirby, in the 1980s.

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Fast forward, the decades-old Coffee Can Compounding long-term investing strategy, i.e. buy quality stocks and forget for the next 10-20 years, gained its traction in India- world’s fourth largest and one of the most vibrant stock markets in the world.

Primary criteria for eligibility under the ‘Coffee Can Investing’ strategy:

• A solid business model that delivers consistent double-digit earnings (core EPS) growths
• Have superior & sustainable operating profit margin over decades
• Ensures sustainable double-digit returns on capital employed (ROCE >15-20%)
• Have resilient operating/ free cash flows (OCF/FCF)
• Have low debt, and a strong balance sheet to fund organic & inorganic expansions & diversifications to grow in size
• Have impeccable management, robust corporate governance
• Have wide economic moats (monopolistic competitive advantages in a durable & sustainable way) due to its sheer size & scale of operations

For the Indian market, such Coffee Can sectors may be banks & financials, B2C/B2B (business to consumer/business to business), export-heavy IT service and also niche industrial sectors. This approach only involves sound fundamental analysis with basic technical analysis to avoid basic entry mispricing, but often does not take into account regular technical analysis (timing) to ensure longer-term fundamental pricing based on pure quantitative analysis; i.e. bottom-up approach. This also ensures frequent buying & selling, lower transaction & other costs and avoids emotional actions during occasional periods of high volatility.

India has entered 2026 with a potential real GDP growth of around 6.5%, led by robust domestic consumption, expected recovery in rural demand, various structural tailwinds and also some cyclical headwinds. Thus, the Coffee Can investing strategy remains the cornerstone of India’s Dalal Street ecosystem for patient investors looking for multi-baggers with very low risk. In his recent comments & insights shared at various investment & digital platforms, Mukherjea, the Indian icon of the Coffee Can Investing mantra, highlighted India’s scarcity premium and a unique investment appeal for a domestic consumption-led economy, resilient to persistent global headwinds from the Ukraine war to the Trump trade war.

Overview of Selected Stocks in line with the Coffee Can Investment strategy for India.

Nestlé India Ltd

Nestlé is a subsidiary of the global FMCG giant Nestlé SA, and is pivotal among leading consistent compounders with a formidable moat in India's FMCG, foods & beverages market.

Nestle India was incorporated in India in 1912 (as Hindustan Foods).

It manufactures and markets iconic brands like Maggi, Nescafé, KitKat, Cerelac, and Everyday.

The company has a robust & extensive distribution network.

It has multiple plants, warehouses- serving urban and rural consumers across India.

Nestle operates in high-margin premium categories—prepared dishes (Maggi noodles), beverages (coffee/tea), milk products/nutrition, and confectionery—leveraging strong brand equity, distribution networks (reaching millions of outlets), and innovation (premium and health-focused products).

Its revenue comes primarily from domestic sales (~90%), but exports are also growing.

Its strong brand appeals, robust pricing power, scale efficiencies, and premiumisation drive consistent margins- EBITDA around 25%.

A big beneficiary of expected demand recovery in rural demand and stable input prices, Nestle is expected to deliver around double-digit volume growth in FY27.

With long term focus on innovation and sustainable growth, Nestle remains one of the primary focuses in India’s consumption led Coffee Can Investing landscape.

Page Industries Ltd (PAGEIND)

Founded in 1994, Page Industries is the exclusive licensee for Jockey (innerwear) and Speedo (swimwear) in India and select regions.

Headquartered in Bengaluru, it has grown from a family business into a market leader- stands out for its near-monopolistic position in premium innerwear and leisurewear.

The company manufactures and distributes branded apparel through a robust dealer network and modern retail channels.

Its moat stems from brand strength, quality perception, and exclusive licensing agreements.

Page’s high ROCE (often 30-50%+ historically) arises from asset-light operations, premium pricing, and low working capital needs.

The growth drivers include urbanisation, rising aspirational demand, and category expansion (e.g., active wear).

Despite intermittent margin pressures, its consistent performance and clean balance sheet make it a classic Coffee Can holding.

HDFC Bank Ltd (HDFCBANK)

Formed in 1994, it merged with HDFC Ltd in 2023, creating a banking powerhouse- led by robust management and impeccable corporate governance

As India's largest private sector bank by assets, HDFC Bank exemplifies quality in financial services across millions in retail, wholesale, and digital segments.

HDFC Bank offers a full suite of banking products—deposits, loans (home, auto, personal), credit cards, and digital services—with a focus on low-cost current/savings accounts (CASA) and superior asset quality.

The moat lies in its franchise strength, digital leadership, cross-sell capabilities, and conservative risk management (lending model)

Post-merger integration, HDFC Bank has strengthened its position in mortgages and unsecured lending, positioning well for India's financialisation story.

HDFC Bank’s consistently high ROE/ROCE, steady loan growth (~15-20% historically), and robust fee income drive compounding return in the Coffee Can investing landscape.

Asian Paints Ltd (ASIANPAINT)

Founded in 1942, Asian Paints is the market leader with over 50% share in decorative paints.

Asian Paints dominates India's decorative paints market with unparalleled brand recall.

The company has expanded into home décor and international markets.

It manufactures paints, coatings, and allied products, distributed via a vast dealer network.

Asian Paint’s moat is built on brand trust, extensive tinting systems, innovation (like waterproofing, eco-friendly ranges), and economies of scale.

Its high ROCE stems from pricing power, efficient supply chain, and low debt.

Asian Paints’ growth comes from housing demand, urbanisation, and premiumisation.

Despite cyclicality in India’s construction and seasonal painting, its defensive characteristics and consistent execution suit long-term classical Coffee Can holding.

Pidilite Industries Ltd (PIDILITIND)

Established in 1959, Pidilite is synonymous with iconic brands like Fevicol, M-Seal, and Fevikwik in India, with a growing presence in global markets.

Pidilite is also a leader in adhesives, sealants, and construction chemicals in India

It operates in consumer (adhesives, art materials) and industrial segments (construction chemicals, textile resins).

Pidilite’s moat derives from brand loyalty, distribution depth (reaching small towns), and R&D-driven innovation.

Its high margins and ROCE result from premium pricing power and low capital intensity in core categories.

Pidilite’s targeted expansion into waterproofing, wood finishes, and acquisitions (M&A) fuel growth, aligning with infrastructure and housing booms in India-places it as one of the prime candidates in Coffee Can Investing compounder.

Conclusion

‘Coffee Can’ value investing approach rewards discipline over speculation in the long term horizon. By separating noises and fundamentals (earnings), it aligns with India’s structural tailwinds rather than cyclical headwinds. The age-old Coffee Can value investing remains one of the compelling strategies in India –helping in long-term wealth creation.