By Suhel Khan
In news that could be termed by some as “surprising” one of India’s Warren Buffetts, ace investor Ashish Kacholia has substantially reduced his stake in a company. As per the latest shareholding pattern released by the exchanges, Kacholia has cut his holding from 8.32% to 3.54% between September 2024 and December 2024.
This 57% reduction in his position comes at an interesting time, given that the company in its latest investor presentation has stated that “Revenue uptick should start reflecting gradually from Q4FY25 onwards”.
Now for those who know Kacholia, he is known for knack of identifying potential multibaggers, especially in the small and mid-cap space. He co-founded one of India’s first digital entities Hungama Digital, with Rakesh Jhunjhunwala back in 1999 and went on to start his own company, Lucky Securities, in 2003.
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Kacholia was holding a little over 8% stake in the company in question since the quarter ending September 2023. So, this partial exit has naturally raised questions among market participants about the company’s growth trajectory and valuations.
Let us look at the company in question…
Universal Autofoundry Ltd (UAL)
With a market cap of Rs 115 cr, UAL is a global manufacturer and exporter specializing in the production of Grey Iron, Ductile Iron, and SG Iron Casting. The company boasts of a varied clientele with names like Ashok Leyland, Volvo, Renault Trucks, Mahindra and JCB.
The company’s numbers for the quarter ending December 2024 are still not out with the exchanges as on the 18th of January 2025.
The last decade for the company’s sales were not too bad given that the company was consistent YoY growth in sales, barring in FY20, which could possible be attributed to the pandemic.
Data Source: Screener.in
The sales have grown at a compounded rate of 17% in the last 3 years, 11% in the last 5 years and 17% in the last 10 years.
The net profit of UAL is what could be something that could be a reason behind Kacholia’s partial exit. From Rs 8 cr in FY19 to Rs 5 cr in FY24,
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