Top 10 Stocks Ashish Kacholia Bought and Sold Recently

If you've been trading and investing in the stock market in January 2024, you would have noticed that the market has experienced a bit of volatility recently.

This has been the cause of much discussion about the prospects about the stocks market this election year.

Given that we might be moving into another tough year for the stock market, investors are looking towards "experts" now more than ever to tide them over the rough times.

There is an endless supply of experts out there but very few stand out.

These experts or super investors understand the importance of getting ahead of long-term trends and have show a remarkable success track record over the years.

As we're already a month into 2024, many companies have announced their latest shareholding pattern for the quarter ended December 2023.

In this article, we'll look at how Ashish Kacholia, one of the most famous Indian investors, rejigged his portfolio in the quarter gone by.

These are the top 10 stocks he bought and sold during the September-December 2023 period.

Ashish Kacholia's Top Buys in September-December 2023

#1 Zaggle Prepaid Ocean Services

First on this list is Zaggle Prepaid Ocean Services.

Data available on the exchanges shows that Kacholia currently holds 2,703,356 shares of this smallcap IT enabled company.

Considering the current market price as on 25 January 2024, Kacholia's stake in the company is worth Rs 579 million.

In the September 2023 quarter, Kacholia held 1.7% stake in the company which he increased to 2.2% during the September-December 2023 period.

The company came out with its IPO last year in September. Ahead of the IPO, it raised around Rs 730 million in a private placement, and Kacholia was one of the biggest investors in this round.

Zaggle Prepaid Ocean Services is a fintech-SaaS company which has a differentiated value proposition and diversified user base.

The company's revenue grew by 41% in the second quarter of FY24 and by 38% for the first half of FY24, when compared on a YoY basis.

In its Q2 earnings call, Zaggle announced that it launched Zoyer, an accounts payable and vendor payment product, to address challenges faced by corporates in vendor payments and drive efficiency and automation.

The company's offerings are unique that address spend management challenges faced by enterprises.

It recently collaborated with Kotak Mahindra Bank. It also launched forex prepaid cards.

#2 Updater Services

Next on this list is Updater Services.

Data available on the exchanges shows that Ashish Kacholia made a fresh entry in this counter by buying 2% stake of the company.

As of December 2023, Kacholia holds 1,305,000 shares worth Rs 439 million. Prior to this, he did not hold any shares in the company.

Like Zaggle, Updater Services is also a newly listed company and we've seen how Kacholia has over the years taken exposure in small and medium sized enterprises who just came out with their IPOs.

During listing, the company disappointed investors by making a debut at a 5% discount compared to its issue price of Rs 300.

Updater Services offers integrated facilities management services and other services.

In an interview last year, the company's CMD said that Updater Services aims to keep up the historical revenue growth rates of 20-25% over the next five years.

The company is considering venturing into the fields of audit and assurance and sales enablement.

In the second quarter of FY24, Updater Services reported a 17% growth in total revenue from operations and a 4% growth in adjusted EBITDA.

The company expects to repay debt using IPO funds, reducing finance costs.

The management expects its airport ground handling business to improve significantly over the years as new airports come online.

#3 SG Finserve

Next on this list is SG Finserve.

The latest shareholding pattern of SG Finserve shows that Ashish Kacholia has added a 1.1% stake in the company, respectively, as of the December 2023 quarter.

Notably, in the September 2023 quarter, his name was missing from the list of shareholders.

Before this, in the June 2023 quarter, he held about 1.1% stake or 0.4 million (m) shares.

This means perhaps he had a partial stake already and has now decided to double down, or he could have bought the entire stake in the quarter gone by.

He currently holds 628,366 shares of the company worth Rs 318 million.

One of the reasons for Ashish Kacholia's decision to add this stock can be attributed to the blockbuster Q2 result.

For the September 2023 quarter, the company reported a 29x jump in revenue at Rs 438.7 m, up from Rs 14.5 m in the same quarter last year.

Net profit came in at Rs 174.9 m, up 30x from Rs 5.6 m a year ago.

SG Finserve has not only exhibited strength in the current quarter but has also consistently displayed strong financial growth over the years.

Over three years, the company achieved a remarkable compound annual growth rate (CAGR) of 189% in revenue, and the net profit grew by 125.7%.

This impressive growth can be attributed to the company's expansion and customer base growth.

Additionally, for the December 2023 quarter, FIIs have increased their stake. FII holding stood at 0.1% in the September 2023 quarter. It now stands at 0.2%.

#4 Tanfac Industries

Next on this list is Tanfac Industries.

The latest shareholding pattern of the specialty chemical company shows that Kacholia holds 1.2% stake in the company or 118,229 shares in total.

Prior to this, he did not hold any shares in the counter. His current stake is valued at Rs 256 million.

Apart from Kacholia, another prominent name Madhulika Agarwal, wife of Mukul Agrawal, also bought 1.8% in the company in the quarter ended December 2023.

Tanfac Industries is among the leading producers of hydrofluoric acid and its derivatives.

These products find applications in industries such as aluminium smelting, petroleum refining, solar cells, electronics, etc.

The company's business has improved since Anupam Rasayan acquired a stake in it, resulting in multiple synergies.

With its established presence in the fluorochemicals segments, Tanfac has now become strategically important for Anupam Rasayan.

Tanfac Industries is coming off back-to-back years of profit growth in FY22 and FY23 and looks set to surpass the peak profits owing to healthy demand for speciality fluorides and hydrofluoric acid.

#5 Brand Concepts

The fifth stock on this list is Brand Concepts.

The latest shareholding pattern of this company shows that Ashish Kacholia holds 1.4% stake in the firm compared to nil holding in September 2023.

He currently holds 160,093 shares valued at a little over Rs 136 million.

Kacholia initially bought stake in the company on 1 December 2023 via a bulk deal.

Promoters of Brand Concepts have a decade-old experience in the industry, involved in the trading of branded bags, luggage, and travel gear.

This not only helps maintaining its relationship with customers but suppliers as well.

In the year gone by, the company made stellar additions to the team with two new brands - United Colours of Benetton and lightweight contender Aeropostale.

Some experts were concerned about the company's dependence on Tommy Hilfiger brand, but we could see it already making progress with the above reputed new additions.

Around 90% of its revenue comes from Tommy Hilfiger at the moment.

United Colours of Benetton is expected to have a larger market compared to Tommy Hilfiger.

The company's license renewal is also up, and the Tommy Hilfiger brand is expected to be renewed until 2026.

For the next two years, Brand Concepts has big plans in store and it's looking to open 4-6 more stores by the end of the financial year 2024. A store costs around Rs 40-50 lakhs to open.

With this capex expansion, the company is looking to touch Rs 5 billion (bn) per year revenue and the impending merger is also expected to add value.

Brand Concepts is currently in the process of merging with IFF Overseas.

As far as its financials are concerned, Brand Concepts has grown its revenue 4 times between 2021-2023.

This turnaround performance has made the company profitable as it had posted a loss in FY21.

So these were the top stocks that Ashish Kacholia bought in the quarter gone by.

Now let's look at which counters he exited or sold a partial stake in...

Ashish Kacholia's Top Sells in September-December 2023

#1 SJS Enterprises

According to the latest shareholding pattern of SJS Enterprises, Kacholia's name was missing from the list of shareholders who hold over 1% stake in the company.

Companies have to reveal the names of shareholders who hold 1% or more than 1% stake.

Prior to this in the September 2023 quarter, Kacholia held 3.2% stake and before that in June 2023, Kacholia held 4.3% in the company.

A partial stake was sold by him via a bulk deal in November after he offloaded 160,000 shares of SJS Enterprises.

SJS Enterprises makes a wide range of aesthetic products catering to segments including two-wheelers, passenger vehicles, commercial vehicles, consumer durables, and appliances.

Shares of the company have rallied in the year gone by owing to favourable industry trends within the auto ancillary sector.

In the financial year 2022-23, the auto industry experienced a substantial upswing in both production and sales, primarily driven by increased economic activity and enhanced mobility.

Last year, SJS added Lear Corporation and other original design manufacturers (ODMs) like Neolync, GDN Enterprises and Foxconn Technologies as new customers to supply to telecom segment.

For the first half of FY24, the company has posted a 27% growth in revenue and 16% growth in EBITDA, mainly on account of the WPI acquisition.

In July 2023, SJS Enterprises completed the acquisition of a 90.1% stake in Walter Pack Automotive Products India (WPI) for Rs 2.4 bn.

WPI is one of the leading companies in India that has capabilities in advanced IMD, IMF, IML, and IME technologies, providing a strong technological advantage.

Looking ahead, the company is poised to enhance its revenue and expand its network, capitalizing on the favourable industry dynamics.

#2 Tarc

Next on the list of top sells by Ashish Kacholia is Tarc.

Kacholia's name was missing from the list of shareholders in December 2023. Prior to this in September 2023, he held a 2.2% stake in the company.

TARC, erstwhile known as The Anant Raj Company, started out as a construction and contracting company and evolved to become one of the largest real estate development companies and land bank holders in the New Delhi Metropolitan Area.

The company recently announced the launch of its ultra-luxury high-rise residential project in New Delhi - 'TARC KAILASA'.

This is going to be one of the biggest launches in Delhi, with revenue potential of up to Rs 40 bn.

The company is in talks with Bain Capital to secure project-specific funding and equity deals, along with development partnerships, for its top-end offerings.

The company is currently in a sweet spot as demand continues to be good across the premium and super-luxury segments.

#3 NIIT

Next on this list is NIIT.

The company is a multinational skills and talent development corporation.

It was set up in 1981 to help the nascent IT industry overcome its human resource challenges. NIIT offers training and development to individuals, enterprises, and institutions.

As of December 2023, Kacholia's name did not appear among NIIT shareholders (with over 1% stake) for the quarter. He held a 1.9% stake or 2.5 million shares in the September 2023 quarter.

Kacholia entered NIIT in the June 2018 quarter by adding 4.2 million shares or a 2.57% stake in the company.

For the September 2023 quarter, NIIT reported a revenue of Rs 417 million, down 69.4% YoY from Rs 1.3 bn a year back.

Meanwhile, the net profit for the quarter came in at Rs 102.9 million, down 43.5% from Rs 182.1 million a year back.

Additionally, during the December 2023 quarter, promoters reduced their holdings in the company from 34.8% to 34.7%.

It's worth noting this isn't the initial instance of such a reduction, as promoters have been gradually reducing their stake in the company since March 2022.

Going forward, NIIT is looking to expand into new areas that have the potential for growth in the future.

The role of artificial intelligence (AI) is particularly intriguing and central to its endeavours.

The strategy involves diversification, with a focus on emerging sectors for talent acquisition.

#4 ADF Foods

Next on this list is ADF Foods.

The company is engaged in the business of manufacture and selling of food products like pickles, chutneys, ready to eat items, paste and sauces, frozen foods, spices, etc.

During the December 2023 quarter, Kacholia trimmed his stake in the company to 1.2% as against 2.8% in September 2023.

He currently holds 1,332,548 shares worth Rs 262 million.

Note that the ready-to-eat food manufacturer has set an ambitious target of doubling its revenue every three years, from about Rs 4.5 bn currently.

It aims to tap into the growing demand for pre-cooked food items across international and domestic markets.

Currently, 98% of the Mumbai-based company's revenue come from overseas.

It's ramping up its domestic business with the newly-launched pickle and cooking pastes brand Soul, which it plans to grow to Rs 1 b in the next three years.

The company's management has said ADF Foods will invest Rs 1 bn over the next two years to expand its manufacturing capacity, while eyeing acquisitions for inorganic growth.

#5 Best Agrolife

Last on this list is Best Agrolife.

Formerly known as Sahyog Multibase, Best Agrolife is a leading agrochemicals manufacturer in India.

Ashish Kacholia trimmed his stake in the smallcap stock to 1.36% during the December quarter from 2.25% in the September quarter.

He currently holds 321,202 shares worth Rs 252 million.

The offloading comes on the back of underperformance by Best Agrolife, which has seen its price getting decline over the past 12 months.

The company also posted a muted Q2 show with a 27% decline in its consolidated net profit to Rs 950 million.

The global agrochemical industry is facing challenges due to higher channel inventory and sustained pricing pressure.

The outlook back home is also dampened due to a monsoon deficit and uneven distribution of rainfall, impacting the demand for agrochemical products.

The management is hopeful that the company's differentiated product portfolio would help in meeting the guidance of achieving close to 25-30% growth this year.

Snapshot of Ashish Kacholia Stocks on Equitymaster Stock Screener

Here's a list of stocks owned by Ashish Kacholia with some of the important parameters.

Please note these parameters can be changed according to your selection criteria.

How Kacholia rejigs his portfolio in the coming quarter remains to be seen.

We will keep you updated on all the developments from this space.

Stay tuned and happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...