Shankar Sharma Portfolio 2026: Latest Holdings, Top Stocks & Small-Cap Strategy Revealed

Shankar Sharma is a highly respected Indian veteran investor, known for his contrarian approach and focus on undervalued hunting. Although his publicly disclosed market timing may not always be perfect in the short term, in the long run, it works perfectly. He is one of India’s celebrity analysts/investors/traders –who can speak out of his mind and often point out both tailwinds & headwinds of the Indian economy and stock market ecosystem. His public interviews and comments are being followed by Dalal Street closely. His publicly disclosed portfolio often points out his unique investing approach and thought process, especially on selective mid and small caps.

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Shankar Sharma is a prominent figure and one of the celebrated ‘super star’ in Dalal Street, known for his early recognition of the IT boom in the 1990s (after the landmark budget & planning/policies by the then FM Manmohan Singh in 1994) and his consistent pursuit of long-term value in small- and mid-cap companies. He is the Co-founder of First Global (established in 1991), a leading PMS/investment firm. Later, he launched GQuant Investech in 2015, a tech/algo-driven investment platform that leverages data analytics and quantitative tools to identify trends and opportunities, ensuring both top-down and bottom-up investment approaches coupled with technical analysis for perfect timing.

Sharma’s primary investing approach focuses on fundamentals first: business model, competitive edge, quality of management & corporate governance, sustainable growth prospect and fair valuations. As an experienced market participant since 1980’s, Sharma has seen many ups & downs of Dalal Street, and thus he exercised utmost patience during turbulent periods to focus on fundamentals and not transient noises. He prefers diversification across defensives and also risks and views deep corrections as opportunities to accumulate quality stocks at bargain prices. Sharma’s publicly disclosed portfolios (SEBI regulatory filings-SAST/Bulk deals) usually feature 8-10 stocks, predominantly mid & small caps, potential multibaggers in the coming days in diverse sectors-telecom, textiles to tech.

Overview of Selected Stocks in Shankar Sharma's Portfolio

Thomas Scott (India) Ltd: Sector-Textiles/Apparel & Accessories

Incorporated in 2010, Thomas Scott India Ltd (TSIL) is a small-cap player in the branded apparel and textiles space, focusing on men's fashion, innerwear, and related products. It operates through the full value chain- manufacturing, distribution, and retail channels, emphasising affordable branded offerings in a competitive market. It also has huge export potential and has manufacturing facilities in Bangalore, Solapur and Gurgaon. Almost 87% of revenue comes from the B2B segment and 5% from the B2C (own brands) segment. TSIL is also a contract manufacturer for several high profile brands-Raymond; Max, Being Human (Salman Khan-backed), Shoppers Stop, etc. It’s a fully integrated partner for these licensed partners, handling almost everything from designing to RM (raw material) sourcing to manufacturing & distribution.

TSIL also has its own brand-Thomas Scott; Hammersmith; Bang & Scott; and Italian Gold, offering premium shirting and semi-formal business casual shirts through both online (Amazon, FlipKart, Myntra, Namshi-Dubai and offline mode (five exclusive retail stores in Bangalore, IT office hubs. It also offers customised products based on customer specifications.

Sharma's Stake:
TSIL has the largest position (~₹40 crore) in Sharma’s portfolio, around 8.16% at Dec’25 QTR, reduced slightly from 8.30% (profit booking/rebalancing). The stock remains a high conviction long-term investment by Sharma and is expected to be a great beneficiary of the urban demand revival potential in 2026.

Valiant Communications Ltd: Sector: Telecom Equipment

Incorporated in 1993, Valiant Communications designs and manufactures telecom transmission and access equipment, including synchronous digital hierarchy (SDH) systems, media gateways, and VoIP solutions. It caters to telecom operators, defence, railways, and enterprises, capitalising on India's digital infrastructure push (e.g., 5G rollout, broadband expansion). Revenue stems from product sales, services, and exports. In brief, Valiant is a dynamic & innovative telecom company, specialising in providing cutting edge solution for network infrastructure and overall communication system-both local & global operations. It also has applications in multiplexers, fibre optic transmission equipment, and digital cross-connects. Valiant is also focused on R&D (innovations) to provide reliable & cutting edge solutions to telecom operators, corporates/business/enterprises and also government agencies.

Sharma's Stake:
2.62% -increased via bulk purchase of ~59,100 shares/0.52%; value ~₹25 crore.
The recent addition signals growing optimism in telecom capex cycles.

Rama Steel Tubes Ltd: Sector-Metals & Mining (Steel Pipes/Tubes)

Incorporated in 1974, Rama Steel Tubes manufactures ERW steel pipes and tubes for infrastructure, agriculture, and industrial applications. It benefits from government spending (stimulus) on affordable housing, irrigation, and construction, with exports adding diversification. The model relies on raw material efficiency and volume growth in infrastructure-driven demand. The company has global operations in almost 16 countries led by the U.K., U.S., Germany/EU, UAE, AND Africa. It has manufacturing plants in AP, UP and MH. Rama is also expanding its capacity through organic & inorganic ways. Its B2B clients include big names like RIL, Gail, Sail, Airtel, BSNL and L&T, etc. Rama Steel is also diversifying into REs and the military industry.

Sharma's Stake:
1.49% (reduced after selling 1 crore shares/0.61%; value ~₹18–24 crore, ~24.3 million shares post-sale).
Added in 2024, this reflects earlier infrastructure optimism, with trimming possibly due to profit booking.

VIP Clothing Ltd: Textiles/Apparel-inner wear/ lingerie

It was originally incorporated in 1991 as Maxwell Industries Limited; the name was changed in October 2016. The company is currently headquartered in Mumbai (MH). VIP operates via manufacturing and distribution networks, targeting mass-market consumers with affordable, branded products. The company has built a legacy spanning over 50 years (roots tracing back to 1971 under associated branding), positioning itself as a key player in India's innerwear and essentials market.

The business model centres on manufacturing, marketing, and distributing men's, women's, and children's innerwear, socks, loungewear, and related daily essentials. It operates across mass-to-premium segments with a strong emphasis on comfort, quality, and affordability. Core brands include VIP Innerwear (economy/budget segment leader), Frenchie, Frenchie X, VIP Leader, Feelings, Brat, and others, covering vests, briefs, trunks, panties, socks, and athleisure/top-bottom wear.

Revenue is primarily generated from domestic sales through a robust distribution network of over 550 dealers and 110,000+ retail outlets across India, supplemented by exports. The company maintains vertically integrated operations—from raw material sourcing (e.g., cotton) to finished garments—enabling cost control and quality consistency. It targets everyday essentials for diverse demographics, capitalising on rising disposable incomes, urbanisation, and demand for branded comfort wear. The company is pursuing a strategic turnaround (as outlined in recent FY26 investor presentations), focusing on brand strengthening, product innovation, and accelerated growth amid sector recovery.

Sharma's Stake:
1.6–1.7% stable; value ~₹4.9–5.7 crore, ~1.5 million shares.
A consistent holding, underscoring faith in the apparel sector recovery.

5) ACE Software Exports Ltd: Sector: IT/Software Services

Incorporated in 1994 and headquartered in Rajkot, Gujarat, India, Ace Software provides IT services and digital content provider. The company traces its roots to a 1992 partnership firm focused on database creation for exports, primarily to US clients like Apex Data Services. It transitioned to a public limited company in 1995, acquiring the partnership business and securing 100% buy-back agreements for the product. ACE Software provides software development, IT-enabled services, and solutions in areas like education, healthcare, and enterprise applications, with a focus on exports. It leverages cost advantages and specialised offerings for global clients.

The business model revolves around outsourced technological solutions, specialising in document management, digital publishing, data conversion, and related services. Key offerings include database creation, pre-press projects (e.g., content editing, e-book formatting, cover design), digital publishing workflows, app and website development, software solutions, IT infrastructure support, and project management. The company emphasises high accuracy (99.995% claimed), cost-effective process engineering, and flexible systems to serve global publishers, organisations, and enterprises—primarily through exports, leveraging India's offshore advantages. Revenue is predominantly from export-oriented services in digital content and IT-enabled processes, with a focus on long-term client relationships and volume-based delivery. It benefits from the global demand for digitised content, e-publishing, and data outsourcing amid digital transformation trends.

Sharma's Stake:
Earlier 3.4–3.7%; value ₹7–9 crore-largely stable
Aligns with Sharma's historical IT affinity

Conclusions

Sharma's portfolio underscores disciplined, fundamentals-led long-term investing in small-caps. While volatile, these bets could benefit from 2026's anticipated earnings recovery and sector tailwinds.