Rakesh Jhunjhunwala, the Badshah of Dalal Street, rightly says that a great investor is he who can “see tomorrow”, i.e. foresee the future and predict future trends.
Most of us are too scared to venture out of our comfort zone. We lack the vision as well as the courage to venture into un-chartered territories.
However, Ashish Kacholia has mastered this art. He keeps his eyes on the horizon and his ears to the ground. When he senses that a new trend is coming, he is among the first to latch on to it.
When Ashish Kacholia realized that NAMO is placing great emphasis on self-reliance by India in the defense sector as a part of the “Make in India” policy, he sensed that Indian companies which supplied technology, parts etc to the defense sector would stand to gain immensely. He aggressively bought stocks in these companies.
On 7th July 2014, Ashish Kacholia bought a chunk of 96,446 shares of a (then) little-known company called Dynamatic Technologies Ltd at Rs. 1540 each. He later increased his holding to 104,681 shares.
Today, less than a year later, Dynamatic Technologies Ltd is at Rs. 3838 and everybody is clamouring for a slice of the Company. Goldman Sachs & Prashant Jain’s HDFC MF bought a truckload of the stock a few days ago.
A little bit of research reveals that Dynamatic Technologies is really on an upward trajectory. There is a fascinating report in the ET on “How Dynamatic Technologies CEO Udayant Malhoutra has transformed India’s aeronautical sector”. Among other things, the report points out that Dynamatic currently has a total order book of over Rs 5,000 crore in its aerospace business. It is also emphasized that this business is most profitable business, with operating margins of around 30%.
More details as the various collaborations that Dynamatic has with big ticket OEMs like Boeing Co, Hindustan Aeronautics Ltd (HAL), Spirit AeroSystems etc are given in a Livemint article titled “Changing dynamics of Dynamatic Tech”
Another defense stock that Ashish Kacholia bought is Zen Technologies. I covered the event in my piece Ashish Kacholia Steps Into Rakesh Jhunjhunwala’s Shoes By Buying Defense Software Stock. Here also Kacholia has made a packet because while he bought a major part of the stock on 11th November 2014 at Rs. 41 (adjusted for split), the CMP is Rs. 48.
Ashish Kacholia’s latest stock pick is Axiscades Engineering Technologies Ltd. He bought a chunk of 375000 shares at Rs. 225 each yesterday.
Interestingly, Ashish Kacholia has the distinguished company of Hiren Ved’s Alchemy Capital in Axiscades as well as in Dynamatic Technologies. Lashit Sanghavi of Alchemy is also a substantial shareholder in his personal capacity in Dynamatic Technologies.