The investing world witnessed the end of an era on 31 December 2025, when the legendary Warren Buffett officially retired as CEO of Berkshire Hathaway at the age of ninety-five. While the 'Oracle of Omaha' steps back, his timeless investment philosophy—focusing on long-term business fundamentals over short-term market noise—continues to offer a powerful framework for identifying value, especially in a dynamic market like India's.
The Buffett Blueprint for Indian Markets
Buffett's core mantra of being "greedy when others are fearful" urges investors to look beyond temporary setbacks and assess a company's intrinsic worth. In India, where market narratives can shift rapidly, this principle is particularly relevant. The ideal Buffett-style pick is a company with a strong competitive moat, robust governance, and a proven track record, currently facing short-term challenges that have made its valuation attractive.
Here are three Indian companies that currently appear to align with this classic value-investing yardstick, each navigating its own set of headwinds while possessing durable long-term strengths.
HDFC Bank: A Banking Behemoth in a Temporary Slump
Since its landmark merger with HDFC Ltd in July 2023, India's largest private bank has faced significant integration pains. The absorption of the parent's high-cost borrowings and low-yielding home loan book compressed its net interest margins. A strategic focus on boosting deposits to lower funding costs also temporarily held back credit growth.
The result has been a dip in return on equity and assets, causing the stock to underperform the private bank index. However, this has created a potential opportunity for patient investors. The bank now trades at 2.7 times its book value, a notable discount to the 3.5x P/BV ratio just before the merger.
The strategic benefits of creating a full-service financial conglomerate with massive cross-selling potential remain intact. With one of the cleanest balance sheets in the industry and a long history of strong governance, HDFC Bank exemplifies a fundamentally sound business undergoing surface-level pain, making it a classic candidate for Buffett-style analysis.
Hero MotoCorp: Awaiting a Rural Revival
The leader in India's entry-level two-wheeler segment, commanding a 29% market share in FY25, has faced a perfect storm. Strained rural demand, due to erratic weather and elevated inflation, hurt sales, while the post-pandemic premium boom benefited rivals. Consequently, Hero's market share has fallen to a 25-year low.
Yet, signs of a turnaround are emerging. Healthy monsoons and controlled inflation are aiding a rural recovery. The company's new launches, like variants of the Glamour and Xtreme125R, have boosted volume growth in H1FY26. Furthermore, Hero is making strategic inroads in electric vehicles through its stake in Ather Energy and its own Vida brand, which already holds a 12% share of the electric two-wheeler market.
With a cash-rich, debt-light balance sheet and positioning for growth in exports and EVs, Hero MotoCorp presents a case of a dominant player in a cyclical downturn, potentially setting the stage for a recovery.
Pidilite Industries: A Sticky Consumer Franchise at a Better Price
Even with its iconic Fevicol brand and near-monopoly in adhesives, Pidilite hasn't been immune to broader economic headwinds. A slowdown in government capex and muted consumption demand, coupled with competition from unorganized players, pressured growth and realizations.
This has led to a valuation correction. The stock, which was trading at a lofty 135x P/E at the end of last year, is now available at a more palatable 62 times earnings. Crucially, its fundamentals remain robust. Benign raw material costs and strong pricing power have supported margins. Recent quarters show improving realizations, aided by a revival in rural demand and the construction sector.
Pidilite's asset-light model and consistent financial discipline make it a resilient player in a consumer-facing industry poised for a turnaround, now available at a more reasonable entry point.
The Enduring Legacy of Patience
Warren Buffett's retirement closes a historic chapter, but his investment lessons are far from retired. In an age of short attention spans and rapid-fire news cycles, the principle of ignoring the next quarter and trusting quality businesses to compound over time is more valuable than ever.
The common thread linking HDFC Bank, Hero MotoCorp, and Pidilite Industries is that each possesses a strong franchise, sound governance, and a balance sheet built for the long haul. Their current valuations reflect market caution, not permanent impairment. For investors willing to adopt Buffett's long-term lens and look beyond temporary noise, these companies offer a compelling study in value investing, Indian-style.
