Top investor Ashish Kacholia’s small and midcap portfolio continues to beat the pack, with three of his specialist players, giving over 20 per cent profit CAGR. Cumulatively, 10 of his portfolio stocks have contributed a staggering Rs 6,310 crore in market capitalisation during the year, an indication of robust investor confidence in his long-term bets.
Why Kacholia’s picks matter
Famous for his ability to identify hidden gems in nascent industries, Kacholia has constructed a strong small-cap portfolio. His strategy is centered on early expansion, niche leadership, and margin growth, supported by structural tailwinds over the long term. Irrespective of market uncertainty, his recommendations have exhibited steady earnings drive and investor demand.
Tanfac Industries
Tanfac is a primary producer of hydrofluoric acid and aluminium fluoride. It supplies industries such as solar cells, agrochemicals, lithium batteries, and pharma. The firm recorded a revenue CAGR of 28 per cent and a net profit CAGR of 39 per cent for the past five years. Being a performer with RoE of 32.5 per cent and RoCE of 41.6 per cent, it is a standout in terms of capital efficiency.
Supported by forward integration with Anupam Rasayan and overseas presence in 10 nations, Tanfac is now driving higher-margin value-added products. Kacholia owns 1.59 per cent. But it fetches a P/E of 39x—more than its 10-year median of 14.4x.
Aeroflex Industries
Aeroflex produces stainless steel flexible hoses and fittings utilized in oil & gas, marine, aerospace, and hydrogen systems. They export to more than 90 countries, with the Americas generating over 56 per cent of revenue.
The firm achieved 21 per cent revenue CAGR and 45 per cent profit CAGR over five years. Operating margins have widened to 22 per cent, helped by capacity ramp-up. Aeroflex has recently picked up Hyd-Air Engineering, providing it with access to new customers and industries such as shipbuilding and railways.
Return ratios have tempered despite high growth because of capex. Aeroflex is available at a P/E of 49x. Kacholia owns a 1.92 per cent holding.
Acutaas Chemicals
Acutaas has business in pharmaceutical intermediates and speciality chemicals such as parabens, agrochemicals, and photoresists. It has among its clients major pharma players such as Cipla, Sun Pharma, Lupin, and Aurobindo.
It is the sole Indian manufacturer of photoresist and electrolyte additives. The company is benefiting from India’s China+1 trend of chemical manufacturing. While exact details of stakes are not available, Kacholia is said to own a significant interest.
Quick snapshot
|
Stock |
Revenue CAGR |
Profit CAGR |
RoE |
P/E |
Kacholia Stake |
|---|---|---|---|---|---|
|
Tanfac |
28% |
39% |
32.5% |
39x |
1.59% |
|
Aeroflex |
21% |
45% |
16.5% |
49x |
1.92% |
|
Acutaas |
NA |
>20% |
NA |
NA |
Undisclosed |
Bottom line
Kacholia’s best bets are timeless smallcap compounders: robust balance sheets, widening margins, and scale in exports. But expensive valuations suggest one should be cautious. These stocks are for patient, long-term investors who can hold on while earnings compounding over the years.
