Hello everyone, welcome to The India Opportunity Show where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
Episode 12, Season 4 of The India Opportunity Show is out now! You can watch it on YouTube or listen on Spotify or Apple Podcasts.
My guest this week on The India Opportunity Show is Dinshaw S. Irani, CEO of Helios Capital India, and a veteran of Indian equity markets with more than three decades of experience.
This was a fascinating conversation because Dinshaw challenges several ideas that investors tend to accept as gospel.
Perhaps the biggest one?
“Long-term investing is a myth.”
His argument is not that investors should become short-term traders. At Helios, a stock may remain in the portfolio for years, but it has to repeatedly earn the right to stay there.
The team revisits its assumptions every three to six months rather than buying a company based on a five-year story and refusing to change its mind.
We also go deep into Helios’ 8-stage elimination investing framework, how they think about new-age businesses like Paytm, Zomato and Ather Energy, why they exited private banks, where they see opportunities across sectors, and perhaps the hardest question in investing: when should you actually sell a winning stock?
Key Takeaways
1. Long-term investing does not mean blindly holding forever
For Dinshaw, the long term is effectively a series of shorter periods. Every three to six months, the investment thesis is reassessed. If the fundamentals continue to justify ownership, the stock stays. If they don’t, being a “long-term investor” isn’t a reason to hold on.
2. Eliminate first, invest second
One of the most interesting parts of the conversation is Helios’ 8-stage elimination framework. Instead of starting with reasons to buy a company, the process systematically looks for reasons to reject it based on factors such as industry characteristics, management quality and valuation.
Only the companies that survive the filters become serious candidates for the portfolio.
3. New-age companies require a different valuation lens
We discuss why Helios is willing to own companies such as Paytm, Zomato and Ather Energy, even when some traditional investors consider these businesses difficult or impossible to value.
Dinshaw explains how the team thinks about rapidly evolving businesses where conventional historical metrics may not capture the size of the future opportunity.
4. Zomato versus Swiggy is about more than food delivery
Our conversation moves from food delivery into quick commerce, and why investors need to separate the economics and competitive dynamics of the different businesses sitting inside these platforms.
5. Sometimes the most important portfolio decision is what you stop owning
Dinshaw explains why Helios exited private banks, why the team has avoided PSU banks, and how changing industry dynamics can alter an investment thesis even in sectors that were once market favourites.
6. Selling is as important as buying
What do you do when you’ve already made substantial money in a stock?
Dinshaw walks through how Helios thinks about selling winners, challenging an existing thesis and dealing with the inevitable doubt that comes with getting investment decisions wrong.
7. Look for asymmetric opportunities, not just popular narratives
We also explore opportunities across defence, manufacturing, power, AI and small caps, investing when markets are at all-time highs, anchor investing in IPOs, and how Helios looks for situations where the potential upside meaningfully outweighs the downside.
Chapters
00:00:00 - Intro
00:01:29 - Contrarian market beliefs
00:01:54 - Overcoming long-term bias
00:07:11 - The rationale for Paytm
00:12:11 - Valuing new-age companies
00:18:20 - Zomato: Food vs. Quick Commerce
00:19:44 - Zomato vs. Swiggy
00:20:49 - The elimination framework filter
00:23:03 - Top sectors for the next 3-5 years
00:26:56 - Why Helios exited private banks
00:30:57 - Avoiding PSU banks
00:34:30 - Incumbent auto vs. Ather Energy
00:40:31 - Defense, Manufacturing & Power
00:43:34 - India’s role in the AI boom
00:45:50 - When to sell a winning stock
00:47:10 - Timeless investing principles
00:49:09 - Handling doubts about stock picks
00:51:09 - Achieving high returns in flat markets
00:52:28 - Anchor investing in IPOs
00:54:09 - Learning from big mistakes
00:56:01 - Finding asymmetric upside
00:59:05 - Personal vs. public money management
01:00:10 - Investing in small caps at all-time highs
01:01:33 - Rapid Fire Segment
Watch the full episode of The India Opportunity Show.
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.