Top 5 Stocks Held by Ashish Kacholia Under Rs 250

We at Equitymaster constantly try to learn as much as possible about the best capital allocators in the world.

More so, the buying and selling activities of the top investing gurus in India like Vijay Kedia, Sunil Singhania and the likes.

In the previous editorial, we looked at the top 5 stocks under Rs 250 which make up for a good part of Vijay Kedia's portfolio.

Today, we move our analysis to another prominent name - Ashish Kacholia.

Who is Ashish Kacholia?

Ashish Kacholia is a highly respected figure in the Indian stock market. He is known for his sharp investment skills, especially in small-cap, micro-cap, and mid-cap stocks.

Often called the "Big Whale" of the Indian stock market, Kacholia has earned a strong reputation for identifying undervalued companies with high growth potential.

He began his career in the 1990s. During that time, he made a name for himself in the financial sector and worked with well-known market figures like the late Rakesh Jhunjhunwala. Kacholia also co-founded Hungama Digital Media with Jhunjhunwala.

In 2003, he started his own company, Lucky Securities. Since then, his investment strategies have been closely followed by retail and institutional investors alike.

Kacholia's portfolio includes companies from various sectors like chemicals, manufacturing, and consumer goods.

Let's look at some of the stocks under Rs 250 in Ashish Kacholia's portfolio.

#1 DU Digital Global

DU Digital Global is a leading solutions provider specialising in visa processing, passport management, identity verification, and other citizen services, with a significant global presence.

The company also excels in company formation in the UAE and immigration, residency, and citizenship programs.

The company's subsidiary, DuVerify LLC-FZ, also has a contract with the Korean Embassy in India to provide comprehensive document verification services.

As of 30 June 2024, Ashish Kacholia holds 5% stake in this company.

Kacholia bought 4.96% stake or 720,000 shares in the company for Rs 137 million (m) back in May 2023.

Du Digital Global has demonstrated strong financial performance over the past three years and is poised to sustain this momentum in this financial year.

Du Digital Global currently trades at Rs 72 per share and has a marketcap of Rs 5 billion (bn).

#2 Universal Autofoundry

Next on this list is Universal Autofoundry, a global manufacturer and exporter specializing in grey iron, ductile iron, and SG iron castings.

Its products cater to various sectors, including automobiles, earth movers, agriculture, railways, and international markets.

Ashish Kacholia acquired an 8.54% stake, equivalent to 1.03 m shares, in Universal Autofoundry through open market transactions in August 2023. The shares were purchased at an average price of Rs 161.59 per share.

At present, shares trade at Rs 159 per share with a marketcap of Rs 2 bn.

Coming to its financials, the company's profits have come down from the record numbers it posted in FY23. In FY24, Universal Autofoundry's net profit came in at Rs 50 million compared to Rs 100 million in FY23.

In FY23, Universal Autofoundry had posted the highest ever net profit, revenue, and operating margin.

Due to elections, the company saw softness in demand but the management has reiterated that demand has started to come back Q2 onwards. They expect the same to continue in the festive season.

Apart from that, the company's new ferrous line has become operational now, which could result in additional revenues from this year.

The company is also commissioning a solar plant in Jaisalmer and expects the benefits from it to start from FY26.

#3 NIIT

Next on this list is NIIT.

NIIT is a leading skills and talent development corporation, primarily focused on building a global workforce for industry needs.

The company recently demerged its CLG business into a separate listed company. This segment accounted for 80-85% of the company's revenue. The management expects the SNC business to grow by 50% post-demerger.

Initially, Ashish Kacholia entered the stock of NIIT in the June 2018 quarter by adding 4.2 m shares or a 2.57% stake.

However, post December 2023, his name disappeared from the shareholding data which indicates that either he has exited the stock or reduced his holding to less than 1%.

NIIT currently trades at Rs 187 per share with a marketcap of Rs 25 bn.

Shares of the company have seen a steep rise in recent sessions following another super-investor Ramesh Damani also buying stake in the firm.

In the first quarter of FY25, NIIT reported strong financial performance, with net profit tripling year-on-year to Rs 77 million (m) and revenue from operations rising 31% year-on-year to Rs 820 m.

Going forward, NIIT is focused on accelerating its growth through new products and strategic initiatives. In FY25 the company aims to achieve revenue between Rs 3.8-4 billion (bn).

While the company anticipates that margins will remain thin due to ongoing investments, it sees significant long-term opportunities.

#4 Aeroflex Industries

Next on this list is Aeroflex Industries, a leading Indian manufacturer of metallic flexible flow solutions, including hoses and fittings made from stainless steel for controlled flow of solids, liquids, and gases.

The company's diverse product range includes over 2,388 SKUs such as braided and unbraided hoses, gas and vacuum hoses, and more.

Their manufacturing facility in Taloja, Navi Mumbai, has a capacity of 24.5 million meters for SS flexible hoses, with plans to expand by an additional 16.5 million meters by Q3FY25.

The company also produces composite hoses and metal bellows and runs 29 welding stations for assemblies and fittings.

Aeroflex exports to over 88 countries, with 84% of its revenue from international markets.

In August 2023, the company went public with its IPO offer price set at Rs 106 per share.

Just before the IPO, Kacholia bought about 2.03% stake or 231.5 m shares in Aeroflex Industries at Rs 87.56 apiece. At present, he owns approximately 1.8%.

Aeroflex Industries share price currently trades at Rs 197 with a marketcap of Rs 25 bn.

In FY24, Aeroflex acquired Hyd-Air Engineering for approximately Rs 17.3 million, expanding into new sectors like railways and heavy industries.

Aeroflex aims to enter emerging industries such as aerospace and electric vehicles.

With its product portfolio finding applications in segments including semiconductors, electric vehicles, and more, Aeroflex is in a sweet spot due to growing demand.

#5 Ugro Capital

Last on this list is UGRO Capital, a technology-driven small business lending platform that focuses on addressing the capital needs of small businesses.

The company offers a range of financial products, including supply chain financing, unsecured business loans, machinery loans, loans secured by property, and micro-enterprise loans.

Its distribution network includes 23 prime branches and 127 micro branches, with a plan to expand to over 250 branches by FY25.

At present, Ashish Kacholia owns 1.6% stake in this company.

Shares of Ugro Capital trade at Rs 250 per share with a marketcap of Rs 23 bn.

As of FY24, the company's assets under management (AUM) stood at approximately Rs 90 bn, up from Rs 60 bn in FY23.

In FY24, Ugro's net disbursements reached Rs 58 bn, with gross NPA at 2% and net NPA at 1.1%. The company's total debt increased to Rs 46 bn, with term loans making up 66% of its liability mix.

In May 2024, the company acquired a fintech platform named My Shubh Life for Rs 450 m, aiming for an additional AUM of Rs 15 bn by FY27. The company also raised Rs 9 bn in 2024 and announced further fundraising of Rs 13.3 bn.

The company has invested heavily in tech infrastructure, data analytics, and human resources which is expected to expand its franchisee in the medium term.

Snapshot of Ashish Kacholia Portfolio Stocks

Here's a table showing the above companies on various important parameters -

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

How Ashish Kacholia rejigs his portfolio in the coming quarters 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...