Kacholia and Agarwal’s Manufacturing Moves—Is This the Start of a Sectoral Shake-Up?

Two of India's best-known investors, Ashish Kacholia and Mukul Agarwal—colloquially known as India's Warren Buffetts—have made new bets on manufacturing companies, sending the market abuzz. Their recent bets suggest that confidence in India's industrial backbone has returned.

 

Key Highlights:

 

- Ashish Kacholia acquired 1.1% in Gujarat Apollo Industries Ltd, a veteran player in road development and mining machinery. Due to its weak profit track record, the stock has appreciated 123% in five years and has a premium PE of 208x.

- Mukul Agarwal has taken a stake in Monolithisch India Ltd, a recently listed producer of high-quality ramming mass used in steel and foundry furnaces. His 2.3% stake valued at Rs 24 crore is a sign of the optimism on the company's steepling growth path.

 

Company Profiles:

- Gujarat Apollo Industries, established in 1986, provides crushing and screening solutions for the construction, mining, and recycling industries.

Although its EBITDA has remained in the negatives for the last decade, its sales have increased annually from Rs 26.5 crore in FY20 to Rs 41.6 crore in FY25.

- Monolithisch India, established in 2018, has seen meteoric rise with revenues jumping from Rs 5 crore in FY20 to Rs 97 crore in FY25. Its 61% ROCE is far higher than the industry median of 16%.

 

Market Sentiment:

- Kacholia's move is seen to be contrarian in its approach, while Agarwal's move is viewed as a strategic wager on new industrial material.

- Both shares are on investors' radar screens, and Monolithisch's near doubling since listing has drawn particular attention.

 

Sources: Financial Express, NewsBytes, MarketsMojo India, Screener.in, Trendlyne.com