Mr. Ashish Kacholia, a well-known ace investor based in India, has an aggregate holding of 41 stocks with a net worth of over Rs 2,400 crores.
Listed below is one of the stocks in Mr. Ashish Kacholia’s portfolio that reported a high return on equity (RoE) and return on capital employed (RoCE):
Gravita India Limited
With a market capitalization of Rs 5,081.19 crores, the stocks of Gravita India Limited closed at Rs 736 in Tuesday’s trading session gaining around 0.13 percent as compared to the previous close of Rs 735.05 apiece. The stock is trading near its 52-week high mark which was recorded at a price of Rs 773.30.
Keeping a timeframe of one year, the company’s stock has proven to deliver multibagger returns of 130 percent, i.e., if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.30 Lakhs within a period of one year.
Mr. Ashish Kacholia has invested in the company’s stock with him making an entry in the same during March 2022. As per the June 2023 quarter holdings, he holds 14,84,399 equity shares of the company equating to a 2.15 percent stake. The current holding value of his investment stands at around Rs 110 crores.
Having a glance at the quarterly financials of the company, the prime business indicators such as the operating revenues and net profits have seen a dip with the former going down from Rs 748.93 crores during the March 2023 quarter to Rs 703.39 crores during the June 2023 quarter, and, the latter, moving down from Rs 63.99 crores to Rs 52.55 crores during the same timeframe.
On a contrasting note, the company has reported a healthy increase in numbers with the operating revenues going up from Rs 2,215.87 crores during FY21-22 to Rs 2,800.6 crores during FY22-23, and, the net profits increasing from Rs 148.45 crores to Rs 204.09 crores keeping the time horizon the same.
As a result of the same, the company has been able to publish its profitability ratios at above-average numbers with the return on equity (RoE) reported at 41.83 percent and the return on capital employed (RoCE) reported at 31.76 percent. The company also reduced its debt supported by a reduction in the debt-to-equity ratio from 1x during FY21-22 to 0.58x during FY22-23.
Gravita India Limited is engaged in the business of metal fabrication. The company operates through four broad segments comprising aluminium processing, lead processing, plastic manufacturing, and turn-key solutions with ‘lead processing’ being the major revenue generator.
Written by Amit Madnani
