Ashish Kacholia, better known for his investing strategies and absence in the media, is one of the renowned Indian stock market investors. He started his career with Prime Securities and later joined Edelweiss where he used to handle the equity research desk. Finally, he incorporated his broking firm, Lucky Securities, where he’s building his portfolio.
As per the latest corporate shareholdings filed, Ashish Kacholia publicly holds over 49 stocks with a net worth of around Rs. 3,123.4 crores. He focuses on companies with strong fundamentals. A few of his holdings have given him over 500 percent returns from the investment value.
Listed below is a smallcap stock in which Ace investor has bought a fresh stake during the March quarter:
Man Industries (India) Ltd
With a market capitalization of Rs. 2,719 crores, the shares of the pipes manufacturing company started Thursday’s trading session on a lower note at Rs. 416 compared to its previous close of Rs. 420.10. During the trading session the shares hit a high of Rs. 424.60, gaining around 1 percent and are currently trading at Rs. 422 apiece.
Looking at the company’s financial statements, the revenue decreased by 18 percent from Rs. 1,018 crores during the September quarter to Rs. 833 crores in the December quarter. On the other hand, the net profits declined by 21 percent from Rs. 39 crores to Rs. 31 crores during the same period.
The stock has delivered a multibagger return of 350 percent to its shareholders in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 4.50 lakh now.
According to the latest shareholding pattern, Ace Investor Mr Ashish Kacholia bought a fresh stake in the company’s shares during the recent quarter by acquiring approximately 13.62 lakh equity shares equivalent to 2.1 percent and the current holding value of his investment amounts to Rs. 57.2 crores.
The company has three state-of-the-art manufacturing facilities with 2 facilities located in Anjar, Gujarat having 2 LSAW line Pipe units and 2 HSAW Line Pipe units, 1 ERW unit and also for various types of Anti-Corrosion Coating Systems and 1 facility in Pithampur, Madhya Pradesh, having a total installed capacity of over more than 1.15 Mn MTPA.
Moreover, the company has already completed one round of capex, which has added 1.5 million tonnes per annum (mtpa) new capacity to its existing 10 mtpa.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 11.43 percent during FY 21-22 to 6.10 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 16.09 percent to 10.36 percent during the same timeframe. Furthermore, the net profit margin decreased from 4.75 percent during FY 21-22 to 2.66 percent during FY 22-23.
Furthermore, the company has a strong global reach. It has supplied to marquee domestic and international clients such as GAIL, IOCL, HPCL, BPCL, ONGC, Reliance, Adani, SHELL, Kinder Morgan, Kuwait Oil Company, Hyundai Engineering and Construction Ltd., and many more.
Meanwhile, Man Industries has started producing and supplying ERW (electric resistance welded) pipes with smaller diameters used in projects like city gas distribution, where customers like Torrent and Adani Groups are awarding orders.
The unexecuted order book stood at around Rs. 1,300 crores to be executed in the next 6 months. Further the company has outstanding bids for more than Rs. 11,000 crores at various stages of evaluation for several oil, gas, and water projects in India and abroad.
Additionally, the company is also bidding for hydrogen pipe projects in Europe and has outstanding bids for large export orders.
Headquartered in Maharashtra, Man Industries (India) was incorporated in 1988. The company is one of the largest Manufacturers and Exporters of LSAW and HSAW pipes in India with a total installed capacity of 1 million tonnes. The company is among the leading manufacturers of large-diameter pipes with 3 Decades of presence in the Pipe Industry.
Written By Vaibhav Patil
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