2 weeks Ago
When the 'big whale' makes a move, its ripples are seen across Dalal Street. Ashish Kacholia, the big whale, who is one of the most watched super investors on the Street, just added five new stocks to his portfolio. Known for his solid ability to spot multi-bagger opportunities in high-growth sectors, investors following up take note seriously when Kacholia makes buy or sell decisions.
Kacholia's investment strategy is weaved around small and mid-size companies, which are potential multi-bagger stocks in his books. His keen eye and market influence have made him a mentor figure for many investors. The moniker "big whale" bestowed upon Kacholia in the Indian stock market is a testament to how much his movements affect the markets.
And more so around this time because these buys come before the fall the market is witnessing. The Sensex recently plunged 7.5% below 80,000 for the first time in months, while the Nifty 50 lost over 200 points.
Let’s look at the five stocks that Kacholia has added to his portfolio. This is as per the disclosures made to the stock exchange for the period ended 30 September (for holdings more than 1%). #1 Advait Infratech Ltd First up is a company engaged in the business of providing products and solutions for power transmission, power substation, and telecommunication infrastructure fields, with a market cap of 1,846 crore.
Kacholia has bought 2.67% of the company's shares as per screener.in In August 2024, Advait bagged a big green hydrogen contract worth 300 crore from the Solar Energy Corp.
of India Ltd (SECI) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. The company also has secured a letter of intent for a substantial turnkey project valued at 158.9 crore in Gujarat.
With that, the company’s order book stands at 2,095 crore as per its official website. Advait beats its peers when it comes to ROCE (Return on Capital Employed) with the highest current ROCE of 37% while the industry average is 20%. The 10-year ROCE is also around 23%.
However, in valuations, the company has the highest number as it is currently trading at a price to earnings (PE) of 71.6x, while the industry average is about 24.5x.
The 10-year median PE is 49x. The Ebitda (earnings before interest, taxes, depreciation, and amortization) was 4 crore in FY19 which grew at a CAGR of 55% to 36 crore in FY24. The sales have grown from 28 crore to 209 crore in the same 5-year period at a compounded rate of 49%.
Profits grew at a compounded rate of 57%, from 2 crore to 22 crore, in the last five years. When it comes to the price, the stock prices have grown from 25 when it was listed in October 2022 to 1,709 as of today, which is a growth of 6,736%. The company plans to grow exports with global collaborations.
It also aims to focus on net zero carbon emission and align itself with the Prime Minister’s vision for a green future. #2 Aimtron Electronics Ltd Next is a company that provides products and solutions for electronics system design and manufacturing (ESDM) services, with a focus on high-value precision engineering products. Kacholia has bought a 1.
11% stake in the company. Aimtron Electronics, with a market cap of 856 crore, was listed recently in June 2024 only on NSE with an issue size of 87 crore and the public issue was subscribed 71 times in the retail category. The stock was listed on the 6 June at a price of 253 and since them has seen a roller coaster ride.
The company has an order book of 110 crore as per data on NSE. The company has a current ROCE of 34%, while the industry average is 19.5%.
Its 10-year ROCE is 24.6%. As for valuations, the company is currently trading at around 63x PE, which is close to the industry average of 63.
27x. The Ebitda grew at a CAGR of 6.3% from 20 crore in FY21 to 24 crore in FY24.
The company's sales rose from 53 crore to 93 crore in the 3- year period, logging a CAGR of 21%. Profit fell from 16 crore in FY21 to 14 cr in FY24. The company’s chairman, Mukesh Vasani in the annual report on the exchanges said, “Our strategic priorities include broadening our industry focus, enhancing operational efficiency, expanding geographically, and optimizing our supply chain processes to increase our market reach and ensure sustainable growth.
" #3 E2E Networks Ltd This is an AI-focused hyper-scale cloud platform, offering advanced cloud GPUs and a comprehensive ecosystem of cloud technologies designed for the development and deployment of AI/ML applications. Kacholia has bought a 1.05% stake in E2E Networks Ltd.
The company recently closed a strategic investment round, securing 420.51 crore through a preferential issue of equity shares. E2E says this significant capital infusion will help it strengthen its commitment to advancing India’s AI/ML cloud platform, empowering enterprises, startups, and institutions nationwide.
E2E networks has an ROCE of 25%, which is higher than the industry median of 17.75%. Its 10-year ROCE is 20.
85% The valuations, however, look worrisome as the company’s shares are trading of a PE of a big 190x, while the industry average, when compared to peers, is just 37x. The median PE for the last 5 years, however, is 35x. The Ebitda was 11 crore in FY19 which grew at a CAGR of 34% to 48 crore in FY24.
Sales have grown from 34 crore to 94 crore between FY19 and FY24, a CAGR of 23%. Profit in the same period grew at a compounded rate of 69% to 22 crore. The stock prices also grew a huge 11,300% in the last 5 years, going from 31 to 3,538.
E2E is planning to expand its capacity for data centre facilities from 1,000 KW to 4,200 KW in the next 7 years. #4 Jyoti Structures Ltd Next up is a company incorporated in 1974, that is engaged in electricity, transmission, distribution and substation. Kacholia has bought a 2.
52% stake in the company. The company recently bagged an order from Adani Energy Solutions worth 450 crore for survey, soil investigation, supply of towers, foundations, erection, stringing and commissioning of LILO (line in and line out) of 765 kV DC Bhuj II-Lakadia transmission line at Navinal, Gujarat on turnkey basis, to completed by April 2026. In August, the company had secured an order valued at 106 crore from a private developer for the supply of towers for a 765-kilovolt DC transmission line project.
The company has a low ROCE of 1.15%, while the industry average when compared to peers is 17%. Its share is trading at a PE of 88x, while the industry average is 71x.
The 10-year median PE is about 17x. Ebitda, or operating profit, was negative in FY19 at 658 crore. But it has seen a turnaround since then, as it was 17 crore in FY24.
Sales, which had been declining in the years preceding FY19, were 182 crore in the year ending March 2019. However, they grew at a compounded rate of 20% to 434 crore in FY24. Profits also grew at a CAGR of 15% between FY19 and FY24.
Its stock prices have grown form 2 in October 2019 to the current 31.6 today, a growth of 1,480%. The company has some big expansion and order execution plans and has reduced its debt from 7,400 crore in March 2021 to 1,910 crore in FY24.
#5 TBI Corn Ltd This company is a manufacturer and exporter of corn-based products like cleaned and fat-free corn grits, corn meal, corn brewery grits, stone-free broken/cracked/crushed maize and corn flour and corn flakes. Kacholia has bought a 4.22% stake in the company.
TBI Corn, with a market cap of 318 crore, was listed in June 2024 only on NSE with an issue size of almost 45 crore, and the public issue was subscribed 523 times in the retail category. The stock was listed on 7 June at 207, and since then has seen a jump and a downward spiral. The company has an ROCE of 24.
6%, while the industry average is 15.9%. The company’s share is currently trading at a PE of 31.
5x, which is close to the industry average of 32x. Its Ebitda grew from 6 crore in FY23 to 7 crore in FY24. Sales for the company went from 75 crore to 83 crore in the same period, which is a growth of 37% Net profit also grew from 6 crore in FY23 to 10 crore in FY24, showing a growth of over 60%.
The Indian corn market is valued at $1.29 billion in 2024 and is expected to grow at a CAGR of 7.7% through 2030.
The increased demand for corn-based ethanol fuel is also a driving factor for the industry. With all that, how TBI places itself would be worth tracking. Add to watchlist? Kacholia is a very ardent follower of Warren Buffet and believes the most important factor to consider is the company's management.
Their ability to effectively execute a plan can make or break the business's success. He also believes that if a business can adapt to changing market trends and consumer preferences, it is more likely to thrive in the long run. With the current market mayhem that we see, it will be interesting to see if these five stocks we have dived into today pass the Kacholia test.
The stock market is a volatile space, and steering its complications needs one to have resilience and ability to weather storms and capitalize on opportunities, which Ashish has done well in the past. But for these five stocks, we shall find out in good time..
