Ashish Kacholia is one of the most professional and ace investors, investing in small and mid-cap stocks. Ashish Kacholia’s portfolio has 26 companies. The net worth is ₹ 1525 crores.
Ashish Kacholia’s portfolio has the majority of the Pharmaceutical sector (19%), followed by the packaging, plastics, chemicals, food processing sector. The minimum sector holdings are of Electrodes and Finance (4%) each.
In September 2021, Ashish Kacholia added ten new stocks to his portfolio.
The Newly added stocks in Ashish Kacholia’s Portfolio are:
Xpro India Ltd
It is a new stock in Ashish Kacholia’s portfolio with a 2.5% holding percentage as of September 2021. Ashish Kacholia has held 2,97,216 shares. The holding value is ₹ 20.8 crores.
It is a multi-bagger stock that gave 2000% returns in 2021. It surged from ₹ 33.75 to ₹ 721.65. If an investor had invested 1 lakh in Xpro India Limited shares six months ago, then that amount would have turned six lakhs today.
The YoY net profit and revenue grew by 105.52% and 29.58%, respectively, in Q2 FY22 and the QoQ net profit growth was 115.97%.
VRL Logistics Ltd
The holding percentage of this share in Ashish Kacholia’s portfolio is 1.4%. The number of shares bought is 12,07,632, valued at ₹ 51.9 crores.
The analysts expect recovery, expansion, and new customers growth in VRL logistics. The Q2 PAT (profit after tax) rose to 60% YOY due to recovery in goods transport and bus service volumes. The Logistics sector will become more systematic.
There will be robust growth opportunities for some of the established players in this space. The strong tailwinds for VRL would drive consistent growth in volumes and earnings over the next few years. They would benefit from a) the uptick in economic activity, b) the general price hikes, and c) easing fuel prices (on account of tax cuts).
The YoY revenue and net profit growth is 44.87% and 60.22%, respectively. The QoQ revenue and net profit grew by 38.88% and 115.97% as of September Q2 FY22.
Venus Remedies Ltd
The holding percentage is 1.1%. The number of shares is 1,50,000, valued at ₹ 6.2 crores. The YOY revenue and net profit growth of Venus Remedies as of Q2 FY22 is 60.67% and 77.71%, respectively.
TARC Ltd
The number of new shares added in Ashish Kacholia’s portfolio is 44,25,000, with a stake of 1.5% in the company. The holding value is ₹ 20.3 crores.
TARC Ltd’s income from operations grew 330.9% YoY and 490.2% QoQ. The net profit and revenue increased by 568.88% and 357.22%, respectively.
The Q2 FY22 results report robust revenue amounting to ₹ 16,102 lakhs. They recorded a YoY EBITDA growth is 652.8%.
Somany Home Innovation Ltd
Ashish Kacholia’s holds 1.6% shares of the company. The number of shares bought is 11,20,459, amounting to ₹44.5 crores.
The operating revenue for Q2 FY22 is ₹ 617 crores. The EBIDTA margins are 4.8%. The EBIDTA is ₹ 58 crores, which is up from ₹ 46 crores in Q2 FY21. The PAT grew by 56% YoY. The YoY revenue and net profit growth is 45.05% and 27.85%, respectively. But the net profit declined by 76% on QoQ basis.
Somany has announced a Capex of ₹ 180-190 crores, seeing strong demand and higher consumption in FY22. It will increase its overall capacity and generate ₹ 250-300 crore worth of additional revenue. Analysts expect 16.5% CAGR in tiles volume.
Sastasundar Ventures Ltd
The portfolio holds 3,30,785 shares of Sastasundar Ventures worth ₹ 16.9 crores. The holding percentage is 1.0%. The growth numbers are negative. The revenue increased by 12.28%, but the net profit declined by 102.73 % YoY in Q2 FY22.
Also, the revenue and net profit declined on a QoQ basis by 8.33% and 24.79%, respectively.
Kwality Pharmaceuticals Ltd
Ashish Kacholia holds 1.4% shares of the company. The value of 1,41,000 shares bought is 11 crores.
Kwality pharma delivered a robust growth with total revenue amounting to ₹ 305 crores from ₹ 120 crores in H1 FY22. EBIDTA rose by 43.3%, totaling ₹ 132 crores.
The primary drivers are higher exports in new geographies, high margin products, cost reduction, increased productivity and decreasing debt.
Gateway Distriparks Ltd
Ashish Kacholia has 1.5% stake in the Gateway Distriparks. The number of shares bought is 19,17,606 at a value of 49.5 crores.
The revenue and net profit grew immensely by 27.89% and 1009.1%, respectively, on a YoY basis as of Q2 FY22. The Q2 FY22 EBITDA is up by 38.9.% to 96.76 crores on a YoY basis. Net debt as of September 30, 2021, stands at Rs. 440.91 crores against Rs. 470.23 crores as of June 30, 2021.
Faze Three Ltd
Ashish Kacholia purchased 6,75,688 shares worth ₹ 19.7 crores in September 2021. The holding percentage of Faze Three is 2.8%. The YoY revenue and profit growth in September 2021 quarter is 45.43% and 122.06% and 17.71% and 49.01% on a QoQ basis, respectively.
Ami Organics Ltd
The value of new shares added to the portfolio is ₹ 45 crores. The number of shares purchased is 4,91,474, 1.4% of the total shares of floating in the market.
The net profit and revenue grew by 27.28% and 8.11% on a QoQ basis. The H1 FY22 EBIDTA is by 43% as compared to the same period a year ago. The EBIDTA is improving for the core business, but it is still in single digit for new facilities, where operations are minimal.
Ami Organics has introduced new products that are import substitutes of China. It is a debt-free company with huge capacities.
The shares in Ashish Kacholia’s portfolio whose holding percentage has increased are:
Ador Welding Ltd
The holding percentage is 3.2% which changed by 2.1% as of September 2021. The number of shares is 4,37,700, valued at ₹ 30.1 crores.
Ador Welding has the opportunity to improve their domestic welding business by cost reduction, product developments, reduction in logistics cost, and new product mix. It is also strengthening its international welding business. They focus on reducing legacy costs, welding automation, and robust exports.
The revenue and net profit grew by 66.24% and 359.57% on a YoY basis, respectively. The net profit rose by 116.89% on a QoQ basis.
Garware Hi-Tech Films Ltd
This stake in Garware Hi-tech Films was increased by 0.7% in the portfolio. The holding percentage is 3.3% of the total shares issued. The value of 7,58,577 shares is ₹ 61 crores.
They reported the highest revenue ever in H1 FY22. Disciplined value growth, increased B2C sales, strong cash flows, upgradation of existing capabilities, aggressive investments in innovation and product pipeline are highlights. The use of innovative technology for end-user partnerships drives growth.
The YoY net profit and revenue growths are 14.78% and 36.28%, respectively.
Beta Drugs Ltd
Ashish Kacholia increased the stock holding by 0.7%, now 5.6% of the total shares in the market. The number of shares is 5,40,000, amounting to ₹ 25.6 crores. The revenue and PAT of Beta Drugs grew by 27.85% and 24.53% in FY22, respectively.
IOL Chemicals and Pharmaceuticals Ltd
Ashish Kacholia’s portfolio marked an increase in the stock by 0.3%, overall 2%. The value of all shares as of September 2021 is ₹ 52.7 crores. The number of shares is 11,53,566.
IOL Chemicals and Pharmaceuticals is a leading manufacturer of APIs and specialty chemicals. The total income grew by 5% on a QoQ basis, but EBIDTA declined by 53.97% on a QoQ basis. The business activity was silent due to less API demand and volatility in raw materials of chemical products. The revenue from new products is getting a positive response.
There was marginal revenue growth of 0.82% on a YoY basis, but the net profit declined by 75.71%.
Safari Industries India Ltd
The holding was increased by 0.1% as of September 2021. The total holding of the shares is 2.7%. The 6,14,288 shares amount to ₹ 54.8 crores.
Safari Industries reported a YoY growth in revenue and net profit by 199.63% and 218.39%, respectively. The QoQ net profit growth is 333.28%.
They have gained 44.10% in the last six months. A robust demand recovery has been expected in H2 FY22 because of increasing vaccination drive, rising leisure travel, festive season, economies opening up international travel, pent up demand due to postponement of marriage season. They are focusing on expanding their current market and EBITDA margins. They want to reduce China sourcing and add more value-added products.
The shares whose holding percentage in Ashish Kacholia’s portfolio remains constant are:
HLE Glasscoat Ltd
The holding percentage of shares remains the same at 1.4% of total shares. There are 1,91,602 shares valued at ₹ 101.4 crores.
The net profit increased YoY by 14.84% but declined by 8.3% on a QoQ basis. The revenue rose by 2.07% on a YoY basis. The EBIDTA is at 48 crores, up by 49%.
The RoCE and RoE remain over 30%.
There is demand from the end-user industries for filter dryers and glass-lined equipment. The company has reached substantial higher production levels.
They have introduced technology for their customers and focus on customer retention, satisfaction, and after-sales services.
HLE is looking for global expansion and acquired US firm Thaletec Inc. They are innovating their products and exploring opportunities to increase engineering capabilities.
Vishnu Chemicals Ltd
Ashish Kacholia holds 5,88,793 shares. The value of shares is ₹ 48 crores. The holding percentage is 4.9% as of September 2021.
The net profit and revenue rose by 123.2% and 31.86% on a YoY basis, respectively. Income was up 32% at ₹ 241.8 crore as compared to ₹ 182.6 crore in Q2FY22.
EBITDA was up 70% at INR 34.5 crore as compared to ₹ 20.2 crore in Q2FY22.
The efficiency and operational focus help Vishnu Chemicals to deliver reliable product quality. The focus is on manufacturing high-performance specialty chemicals that stand the test of time and quality, which instils confidence in the global customer base.
Poly Medicure Ltd
The holding percentage of Poly Medicure is 1.7%. There is no change in the number of shares held. 16,00,000 shares amount to ₹ 146.8 crores. The revenue and net profit rose by 11.89% and 9.21% on a YoY basis, respectively.
Phillips Carbon Black Ltd
The holding percentage of Phillips Carbon Black remains same as the last year at 1.5%, with 25,02,495 shares valued at ₹ 55.1 crores. The revenue and net profit grew by 60.82% and 110.49%, respectively.
There is an expectation of robust volume growth in the tyre space amid a cyclical recovery in the CV space and the need for personal mobility. It will ensure volume growth at tyre ancillaries. Sales and PAT to grow at 26% and 23%, respectively, in FY21-23E. With greenfield expansion under execution, long term growth prospects are robust amid limited competition in overseas markets.
ADF Foods Ltd
The holding percentage is constant at 1.1%. The number of shares in the portfolio is 2,27,605, amounting to ₹ 18.8 crores.
The revenue rose by 16.01% and 26.91% on YoY and QoQ basis, respectively. The net profit increased by 11.58% on a QoQ basis but declined by 1.25% in one year.
Good demand and volume offtake drive revenue growth. EBITDA for the quarter was at Rs 19.5 Cr with an EBITDA margin of 17.7%. The global container shortage led to margin compression. Profitability and cost reduction were sustained, despite the rise in freight charges.
All facilities are running at nearly maximum capacity. ADF Foods is focused on capturing a large part of the value chain by investing in the distribution network. They have leased a second warehouse center in Georgia and New Jersey for uninterrupted product supply. Also, they have set up a distribution subsidiary to increase direct reach with retailers. All the efforts will help the company push products, control the supply chain, reduce costs and improve margins. They are committed to delivering growth by leveraging products and brands portfolio, operating expertise and robust balance sheet.
Acrysil Ltd
The portfolio has 3.8% of total shares issued by Acrysil– 10,00,000 shares at ₹ 79.7 crores. The YoY net profit and revenue growths are 88.39% and 57.88%, respectively. The revenue and net profit grew by 22.41% and 31% on a QoQ basis.
The shares in Ashish Kacholia’s portfolio whose holding percentage has decreased are:
Vaibhav Global Ltd
The portfolio comprises 22,50,000 shares of Vaibhav Global Ltd, valued at ₹ 124.4 crores. The holding percentage remains constant at 1.4% compared to last year’s September quarter but has declined by 0.1% since March 2021.
The net profit has declined by 40.22% and 57.29% on a YoY and QoQ basis, respectively. There is marginal revenue growth of 6% on a YoY basis.
US and UK economies have opened, the consumer behavior moving to brick-and-mortar stores and people going out on holidays. It has led to lower in-house shopping for the business, which is a home retailer. The gross margin continues to be strong.
Higher shipping costs, global supply chain constraints, initial operating costs from the recently launched German business, digital marketing investments, and increased airtime spend as they onboarded new TV channels and OTT platforms impacted EBIDTA margin.
Investments have already given 5.3% increased new customers in Q2 compared to pandemic induced high new customer count in Q2 FY21.
Vaibhav Global remain confident about the breaking even target within three years of launch. It continues with its investment in Products, Channels and enhances its Digital Capabilities. They strengthened the warehouse operations digitally through GEEK+ robots.
They launched ‘TAMSY’- a new fashion apparel brand for women in USA, UK and Germany. During the quarter, they also acquired worldwide online brand rights of ‘RACHEL GALLEY’- a UK based multiple-award-winning jewellery brand.
NIIT Ltd
Ashish Kacholia has not added any new shares of this company since September 2020, but the holding percentage has decreased by 0.2% since March 2020. The current holding is 2.3%, with 30,00,000 shares valued at ₹ 113.2 crores.
The net profit and revenue rose by 101.36% and 43.55% on a YoY basis but, there was a marginal increase on QoQ basis by 1.93% and 4.37%, respectively.
NIIT Ltd declared results below expectations. Traction in Corporate Learning continued with 28% YoY growth from the integration of Eagle Productivity company. Analysts expect momentum in this segment to drive 97%/70% incremental revenue/EBITDA over FY18-20E. Skills & Career, Schools and Online platforms collectively accounted for 39% of income, but are around break-even levels as of FY18.
They expect marginal growth and improved profitability as management continues to enhance the business offerings. The company is still struggling to lift operational profit. It would see gradual gains as the revenue share of Corporate Learning improves.
Mold-Teck Packaging Ltd
The portfolio has 9,47,497 shares of the company, valued at ₹ 65.4 crores. The holding percentage is 3.3%, similar to September 2020 quarter but has decreased by 0.1% since March 2020.
The revenue and net profit rose by 33.99% and 30.72%, respectively, in Q2 FY22. The performance has improved in the current quarter as volume improved significantly in all three segments viz paints, lubes and Food and FMCG.
Mold-Teck Packaging continued to add new clients, particularly in Food and FMCG. The management remained confident on further strengthening of earnings growth led by capacity expansion and improved product mix.
Mastek Ltd
The current holding percentage is 2.4% which has declined by 0.5% since September 2020. The number of shares in the portfolio is 7,00,000, amounting to ₹ 180.2 crores.
The net profit and revenue grew marginally by 4.33% and 3.38% on a QoQ basis. There was softness in UK revenue for the quarter was due to project completion in the NHS segment and delay in decision making on their side.
It resulted in spillover of some orders to Q3. The company won a deal of US$40-50 million. Mastek also indicated that the deal pipeline is healthy as 25 deals are already in the pipeline.
The company showed that EBIT margins for the quarter got impacted due to wage hikes. The company will be looking to invest in human resources, technology, etc. Hence, long term margins will be around 20%. Mastek is aggressively looking at acquisitions into i) data automation, AI, ii) cloud platform, and iii) customer experience enhancement.
Shaily Engineering Plastics Ltd
Ashish Kacholia’s decreased the holding percentage of Shaily Engineering Plastics Ltd by 0.7% since September 2020. The current holding percentage is 6.5%.5,99,696 shares amount to ₹ 103.6 crores.
The net profit and revenue grew by 43.23% and 46.74% on a YoY basis. It is the main contributor to the overall topline. However, significant growth opportunities in the healthcare and strong order pipeline in the toy business provide strong revenue visibility in the next two years. With better operating leverage and a complete pass of inflationary pressure to its clients, there will be an improvement in EBITDA margin. Better cash flows will fund future Capex and reduce debt.
Conclusion
Kacholia’s holding in Birlasoft, Caplin Point Laboratories, Apollo Pipes and DFM Foods slipped below one per cent as his name was missing from the key shareholders’ list. However, it cannot be ascertained that he has completely exited these stocks. The companies are obliged to release the name of shareholders holding one per cent or more stake in the company.
