Ashish Kacholia Portfolio

Ashish Kacholia is one of the leading investors in the Indian stock market. He is well known for his stock picks in the small and midcap space.

Ashish Kacholia co-founded Hungama Digital with none other than the big bull Rakesh Jhunjhunwala and started his own company Lucky Securities in 2003.

He started his career at Prime Securities and also had a brief stint at Edelweiss Capital before establishing Lucky Securities.

Kacholia's interest in the stock market began when he started investing his savings in stocks. He started out as a small investor, but over time, he developed a keen eye for identifying promising companies with high growth potential.

He is fondly believed as the 'Big Whale' of the Indian stock market.

When Kacholia adds any stock to his portfolio, or increases/decreases stake in companies, market participants are all ears.

Ashish Kacholia's investing philosophy

Ashish Kacholia's investment philosophy is grounded in value investing principles. He seeks out companies with strong competitive advantages, good management, and attractive valuations and emphasizes the importance of long-term investing.

Being an avid follower of Warren Buffett, Kacholia’s investment philosophy is also influenced by the Oracle of Omaha’s approach to investing.

Kacholia believes that a company's management is one of the most crucial factors to consider when investing, as their ability to execute plans can effectively make or break the success of the company.

Another major aspect of Kacholia's investment philosophy is to focus on market trends and changing consumer preferences. He believes that companies that can adapt to changing market trends and consumer preferences are more likely to succeed in the long run.

Ashish Kacholia’s top stock picks

Ashish Kacholia began his career with Prime Securities in 1993 in the proprietary trading business. He later grew with their broking business to become the Head of Research.

He co-founded Hungama Digital with Rakesh Jhunjhunwala and started his own company Lucky Securities, in 2003.

Ashish Kacholia primarily invests in the midcap and smallcap space and has a knack of picking gems, making him one of the most sought-after investing guru in India.

One of Kacholia's most famous investments was in pharma company Ajanta Pharma. He invested in the company in 2012 when it was trading at around Rs 250 per share. Over the next few years, Ajanta Pharma's revenue and profit grew rapidly, and the stock price followed suit, eventually reaching over Rs 2,000 per share in 2015.

Kacholia sold his stake in the company at this point, realizing significant gains from his investment.

Here’s Kacholia’s another famous stock pick...

A notable stock pick of Ashish Kacholia was Mastek Limited. In early 2016, Kacholia spotted an opportunity in Mastek, a mid-sized IT services company based in India. At the time, the company was going through a turnaround phase after a period of stagnation.

Kacholia recognized the potential of Mastek's management team and their efforts to transform the company's business model. He also saw that the company had a strong focus on digital technologies, which was a rapidly growing segment in the IT services industry.

Kacholia started accumulating Mastek's shares at around Rs 180 per share in early 2016. Over the next few months, he continued to add to his position as the company's financials and business prospects improved. By the end of the year, Mastek's stock had more than tripled to around Rs 600 per share.

Kacholia's investment in Mastek turned out to be highly profitable as the company's growth momentum continued in the following years. As of May 2023, Mastek's stock price has reached around Rs 2,200 per share.

Some other famous investments include Polycab India, Majesco, KPIT Technologies and Atul Auto.

How to pick stocks like Ashish Kacholia

Here are some factors to consider for picking stocks like Ashish Kacholia:

1. Low price-earnings ratio - This compares the current price to the most recently reported earnings. Kacholia invests in companies that are undervalued compared to their intrinsic value. He prefers buying stocks having a low P/E ratio as it indicates that the stock is undervalued.
2. Earnings growth - Kacholia believes in analyzing a company's financial performance, including revenue growth, profit margins, and return on equity. Look for companies with consistent profitability and a healthy balance sheet.
3. Debt to equity ratio - This ratio represents a company's net income to its shareholders' equity. Ashish Kacholia prefers to invest in companies with low debt-to-equity (D/E) ratios because high debt can indicate that the company is highly leveraged and may be at risk of defaulting.
4. Return on Equity (ROE) - This is the ratio of a company's net income to its shareholders' equity. Kacholia would prefer investing in companies with a decent track record of return on equity (ROE) because it measures a company's profitability and efficiency in using shareholder equity to generate profits.
5. Free cash flow - This is the cash flow available with a company after accounting for capital expenditures. Kacholia would prefer investing in companies with strong free cash flow (FCF) because it has a strong financial position and can invest in growth opportunities, bring down debt, or return value to shareholders through dividends or share buybacks.

In conclusion

Ashish Kacholia is a highly respected and successful investor in the Indian stock market. His approach has earned him a reputation as one of India's most successful investors.

While guidance from successful investors like Ashish Kacholia can be helpful, it is important to keep in mind that investing always carries inherent risks, and there are no guarantees of success.

That being said, learning from the experiences and insights of top investing gurus can be valuable in developing your investment strategy.

By studying their approaches and analyzing their investment decisions, you can gain a deeper understanding of how to evaluate companies and make informed investment decisions.

Here's a list of articles and videos on Ashish Kacholia stocks. This is a great starting point for anyone who is looking to explore and learn about the stocks that Kacholia has in his portfolio.

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