Ashish Kacholia further laps up this multibagger stock in Q4; key things to know

Well-known individual investor Ashish Kacholia upped his stake in a small-cap firm Yasho Industries during the March quarter. The latest data available with BSE showed that Kacholia held a 2.55 per cent stake (or 2,91,231 shares) in the manufacturer and supplier of specialty and fine chemicals as of March 31, 2022 against 2.36 per cent (2,69,431 shares) on December 31 last year.

Shares of the company have already been buzzing on Dalal Street due to their superlative returns as compared with the benchmark equity indices. The scrip has soared 1,818 per cent to Rs 1922.90 in the past five years till April 8, 2022. On the other hand, the benchmark BSE Sensex gained nearly 100 per cent during the same period.

The company has shown consistent growth in its bottom line and top line figures in the past four years. Yasho Industries posted a net profit of Rs 21.48 crore for the quarter ended March 31, 2021 against Rs 3.67 crore in FY17. Likewise, net sales increased to Rs 359.44 crore from Rs 195.28 crore in 2016-17.

Of late, the net profit of the company increased by 216 per cent year-on-year (YoY) to Rs 39.20 crore for the nine months ended March 31. On the other hand, net sales jumped by 71 per cent YoY to Rs 430.20 crore during the same period.

Promoters also increased their stake in the company to 71.54 per cent as of March 31. They held a 70.84 per cent stake in the previous quarter ended December 31.

In a recent development, Yasho Industries in March announced that the board of directors of the company has approved a capital expenditure of Rs 350 crore in phase 1 for its greenfield project at Pakhajan (Dahej), Gujarat. The company intends to manufacture lubricant additives and rubber chemicals with a total capacity of 15500 MT per annum in phase 1 at this new facility.

Post expansion, the total manufacturing capacity will increase from 11,000 MTPA to 26,500 MTPA with a revenue potential of Rs 500 crore to Rs 550 crore in phase 1 at full capacity utilisation. The project is expected to be completed in 24 months after receiving all necessary governmental approval. The capital expenditure towards the project will be financed through a combination of internal accruals and debt.

Commenting on the expansion, Parag Jhaveri, managing director and CEO, Yasho Industries said, “The demand for lubricant additives and rubber chemicals is increasing globally. We foresee a reasonable demand for our products in the market on account of our ability to manufacture quality products and our reliability. The enhanced capacity will also allow us to approach large multinational consumers who we could not approach in the past due to limited capacity. This investment will lay the foundation for the next phase of growth for the company.”

Shareholding data available with Trendlyne.com highlighted that Kacholia also increased his stake in United Drilling Tools in Q4FY22. His name also appeared in Fineotex Chemical among key shareholders for the first time. On the other hand, Kacholia sold some shares in ADF Foods, Mold-Tek Packaging and Vishnu Chemicals.

Also read: Rakesh Jhunjhunwala, Dolly Khanna, Ashish Kacholia increased stake in these firms in Q3