When the name Nemish Shah comes up in financial circles, it is always followed by respect. Known for his low-profile lifestyle and high conviction bets, he is often referred to as India’s reclusive Warren Buffett. His investment portfolio rarely changes and whenever it does, investors take note. Today, two stocks from his basket are catching everyone’s attention because of their steep fall. Both are trading at more than 50 percent below their all-time highs. The question many investors are asking is whether these are bargains waiting to be picked or warnings that should not be ignored.
Zodiac Clothing Company Limited has been one of Shah’s long-standing investments. Despite the company’s financial struggles, he has stayed invested for nearly a decade. Zodiac operates in the men’s formal wear, club wear, and casual wear space through its well-known brands. On paper, it looks like a household name with strong brand recall, but its financial performance tells a different story. Sales have fluctuated dramatically in recent years and profits have remained elusive. The company has consistently reported losses, and its margins have been under pressure. In August 2025, its share price stood at around Rs 100, almost 78 percent lower than its all-time high of Rs 455. Most analysts would see this as a red flag, but Shah’s decision to hold despite the bleeding raises curiosity. Is he seeing a long-term revival others cannot, or is this simply the weight of conviction leading him down a difficult path?
In contrast to Zodiac, The Hi-Tech Gears Limited presents a much stronger financial story. Incorporated in 1986, it has grown into a respected manufacturer of gears and transmission components. Its clientele includes some of the biggest names in the auto industry such as Hero MotoCorp, JCB, Tata, and Mahindra. Over the last five years, the company’s revenues have steadily increased from Rs 722 crore to Rs 927 crore. Profits, while volatile, saw a strong spike in FY24 before normalizing in FY25. Its stock has given investors a ride worth remembering. From Rs 120 in 2020, it climbed to Rs 633 in August 2025. Even though this is a more than fourfold increase, the stock is still trading at nearly half of its peak price of Rs 1,280. The most interesting part of Hi-Tech Gears’ story is its push into the electric vehicle sector. The company is aggressively investing in EV-focused technology and has already secured contracts with major manufacturers. This long-term focus has convinced many that despite the short-term correction, the company could benefit from India’s transition to electric mobility.
The two companies tell very different stories. Zodiac Clothing struggles to find financial footing while Hi-Tech Gears is aligning itself with the future of transportation. Yet, both remain in Shah’s portfolio. What this shows is his trademark conviction and willingness to look beyond short-term pain. For retail investors, the lesson is not straightforward. Following a legendary investor without understanding the risks can be dangerous. While Hi-Tech Gears may offer potential in the long run, Zodiac Clothing continues to face severe financial headwinds. Investing in either requires not just courage but also patience and a very strong risk appetite.
Nemish Shah’s unwavering commitment to these two stocks is both inspiring and thought-provoking. Investors who admire him will surely keep them on their watchlist, but whether to invest or stay away is a decision that requires careful evaluation. As always in the stock market, the difference between a masterstroke and a mistake is only revealed with time.
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