Ace Investor Ashish Kacholia Raises Stake in this Multibagger Stock that Surged 6,820% in the Past Three Years

Top investors are akin to rock stars in the financial world.

They've achieved immense wealth through their investment skills and in many cases, have helped countless others achieve similar success.

These successful investors have employed a variety of tactics and ideologies, with some using innovative methods to analyse their assets while others rely on their intuition to select securities.

Nonetheless, the one trait that unites them is their consistent ability to outperform the market.

However, mastering these skills is no easy feat for most investors. So, one proven approach to achieving comparable returns is to mimic the investment portfolios of these esteemed investors.

One such tracked investor is Ashish Kacholia.

Ace investor Ashish Kacholia has increased his stake in the multibagger electric retail chain during the March 2023 quarter.

Before we delve deep into the reasons for which stock he bought and why, let's take a look at who Ashish Kacholia is and what are some of his top picks.

Who is Ashish Kacholia?

When we talk about successful investors in India, it's impossible not to mention Ashish Kacholia.

Kacholia is known for identifying the best multibagger stocks. He is known as the 'Big Whale' of the Indian stock market.

Over the years, he has picked the best multibagger stocks by looking at the fastest-growing companies from the midcap and smallcap space.

He started his career with Prime Securities in 1993. In 2003, he started Hungama Digital Entertainment Company along with Rakesh Jhunjhunwala. He is also the proprietor of Lucky Securities.

Which multibagger stock did Ashish Kacholia buy and why?

The latest shareholding pattern of Aditya Vison shows that Ashish Kacholia raised his stake to 1.1% in the company.

Ace investor Ashish Kacholia initially picked up a 0.8% stake in the company via open market transactions on 9 December 2022.

As per the bulk deals data, Ashish Kacholia had initially acquired 100,000 shares at an average price of Rs 1,465.9 per share, driving the total investment value to Rs 146.5 million (m).

While we do not know for sure why the investing guru bought this counter, here are some explanations.

#1 Strong financial performance

For the December 2022 quarter, Aditya Vision reported a 21% YoY rise in revenue to Rs 3.8 bn against Rs 3.1 bn in the same quarter last year.

The net profit for the quarter came in at Rs 195.2 m, up 20.6% YoY, due to higher realization and higher demand due to wedding season.

For the first nine months (April to December) of the financial year 2022-23, the company reported a 59.6% YoY jump in revenue to Rs 12.3 bn, against Rs 7.7 bn a year back.

Net profit during the same period rose by 62.6% YoY to Rs 573.6 m. This growth in earnings was due to higher sales due to an increase in reach.

Aditya Vision Financial Snapshot - 5 years

Particulars	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22
Total revenues (Rs in bn)	4.4	5.6	7.9	7.5	8.0
Growth (%)	23.0	27.0	41.0	-6.0	20.0
Operating profit (Rs in m)	77.0	174.0	343.0	572.0	845.0
Operating profit margin (%)	2.0	3.0	4.0	8.0	9.0
Net Profit (Rs in m)	28.0	58.0	140.0	204.0	353.0
Net profit margin (%)	1.0	1.0	2.0	3.0	4.0

Source: Equitymaster

The company's sales have already surpassed last year's figure with one more quarter still left. Meanwhile, its net profit for 2023 has already doubled from last year's profit.

In the half year ended September 2022, the company also doubled its cash and cash equivalents. In April, cash and cash equivalents stood at Rs 287.1 m, while at the end of September, it was Rs 594 m.

This remarkable growth in earnings could be a factor in the bullish sentiment of Ashish Kacholia towards the company.

Over the past five years, the revenue has shown a CAGR growth of 15.2%, with net profit growing at a CAGR of 66%.

#2 Ambitious growth plans

In 2022, the company ventured into Jharkhand. It has over 90 stores across Bihar and parts of Jharkhand.

It is also venturing into more areas, including Chhattisgarh and Bengal. The company houses brands such as LG, Sony, and Samsung in its brick-and-mortar stores.

Its goal is to reach 150 store count by 150 stores by 2025. The consumer electronics market is still under-penetrated in Tier 3 and Tier 4 cities.

With its extensive offline reach, Aditya Vision has tapped into the potential of these untapped markets and is making a mark in the retail sector.

The company is also set to benefit from the onset of the summer season in India because of its offline reach.

How stock of Aditya Vision has performed recently

Aditya Vision share price has risen more than 65% in last one year.

But this is not the first time when this small-cap stock has delivered stellar returns to its shareholders. It has risen from Rs 18 to Rs 1,500 apiece in the post-Covid rebound, delivering multibagger returns of 6,820% to its shareholders in last three years.

If an investor had invested Rs 100,000 in this multibagger small-cap stock around three years ago, it would have turned to Rs 6.8 m today.

Aditya Vision currently trades at a price-to-book value multiple of 14.5 times and a price-to-earnings multiple of 26 times. The company has a marketcap of Rs 17.2 bn.

As of December 2022 quarter, promoters hold a 68.1% stake in the company.

About Aditya Vision

Aditya Vision is an India-based company that is engaged in the retail business of consumer electronics and home appliances.

The company is engaged in the trading of electronic items. It is a multi-brand store dealing in consumer durables of all kinds.

The company has more than 10,000 products ranging from digital gadgets, such as mobile phones, laptops, sound bars, home theatres, cameras, accessories and much more.

The company offers products from various brands, such as Samsung, LG, and Sony.

For more details, see the Aditya Vision company fact sheet and quarterly results.

You can also compare it with its peers:

Aditya Vision vs Arvind Fashions

Aditya Fashions vs Avenue Supermarts

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...