In an earlier piece, I boldly declared, with my usual impetuousness, that if we ever spot a stock that is backed by both, Ashish Kacholia & Rahul Saraogi, we should aggressively buy the stock blindfolded and with no questions asked.
My theory was that such a stock would exhibit the unique characteristics of “deep value” (which Rahul Saraogi insists on) and “aggressive growth” prospects (which Ashish Kacholia insists on). So, such a stock is safe as a house and also offers the potential for mega gains was my rationale.
This theory was proved correct yesterday when Navin Fluorine, a micro-cap in which the Rahul Saraogi’s Atyant Capital and Ashish Kacholia hold 282,055 shares and 242,218 shares respectively, spurted a magnificent 20% to rest at Rs. 1697.
The reason for the exuberance is the news that Honeywell, the billion dollar conglomerate, has entered into a supply and technology license agreement with Navin Fluorine for the manufacture of a product called ‘Honeywell Solstice yf’, an automobile (car) refrigerant.
Now, this news is big because it reflects the fact that Navin Fluorine is entering the big league by winning the confidence of marquee manufacturers like Honeywell. It is only a question of time before other heavy-weight suppliers/ customers show their trust in Navin Fluorine and shower it with big ticket orders.
In fact, the latest investors’ presentation released by Navin emphasizes that it is now focusing on the “CRAMS and specialty chemical segments to drive growth”. The presentation gives several important details about the company’s growth and expansion plans.
Ashish Kacholia and Rahul Saraogi have been richly rewarded for their confidence in Navin Fluorine. In just the last 24 months, the stock is up an eye-popping 501%. The YoY return is 123%. The best part is that the stock is still a micro-cap with a market capitalisation of only Rs. 1600 crore. So, one can expect a lot more gains in the foreseeable future.
We also have to keep an eye on Vishnu Chemicals, which is also a manufacturer of chromium chemicals and other specialty chemicals. Vishnu Chemicals is an ultra micro-cap with a market cap of only Rs. 295 crore. Ashish Kacholia holds a massive chunk of 398,523 shares (3.34%) of the company while Mindset Securities (a Nirmal Bang concern) holds 131,573 shares (1.10%). Vishnu has also put up an impressive show with a 211% gain in 24 months and a 44% YoY gain. It lost 40% in the recent correction and is trying to claw its way back to glory.
We shouldn’t be surprised if Vishnu Chemicals walks on the same path as Navin Fluorine and fills the coffers of the ace stock pickers with gold!