Synopsis : Ace investor Ashish Kacholia is quietly holding two microcap stocks despite a brutal 60% decline from their highs, sparking curiosity among retail and seasoned investors alike. Will he accumulate more, or is he waiting to exit as these underdogs test patience?
Ashish Kacholia, often called the Warren Buffett of India, has built a reputation for spotting potential in midcap and smallcap stocks, managing a portfolio worth over Rs 2,766 crore across hospitality, education, infrastructure, and manufacturing sectors. But what’s catching the market’s attention now is his quiet conviction in two lesser-known microcap stocks, even as they trade more than 60% below their all-time highs, raising the question: Is it an opportunity or a trap?
TBI Corn Ltd, a manufacturer of corn-based products, has seen strong growth in financials with sales rising from Rs 115 crore in FY23 (9 months) to Rs 212 crore in FY25, while net profits have doubled from Rs 6 crore to Rs 14 crore. Yet, the stock, which listed at Rs 208 in June 2024, has tumbled to Rs 119, a 43% drop, and remains 70% below its all-time high of Rs 399. Kacholia’s 4.2% stake, valued at Rs 9 crore, signals his continued faith, supported by the company’s expansion moves, including a new subsidiary, M/s Agripivot Ventures, and its manufacturing facility in Sangli with a 4,500-ton monthly capacity.
BEW Engineering Ltd, known for designing specialised filtration, mixing, and drying equipment for pharmaceuticals and chemicals, has delivered consistent growth with sales moving from Rs 59 crore in FY20 to Rs 134 crore in FY25 and net profits rising from Rs 1 crore to Rs 12 crore in the same period, reflecting a 79% compound annual growth. Despite the stock having rallied 383% since its listing price of Rs 35 in October 2021 to Rs 169, it still trades 65% below its all-time high of Rs 484. Kacholia’s significant 9.3% stake worth Rs 21 crore, along with interest from other marquee investors like Madhulika Agarwal, hints at the smart money betting on a turnaround as the company eyes a larger order book in H2FY25.
The critical question remains whether Ashish Kacholia will accumulate more of these stocks at these beaten-down levels or quietly exit as retail investors speculate on his next move. With quarterly results set to roll in from July, these microcaps have moved from market obscurity to watchlist-worthy for those tracking where India’s ‘Big Whale’ is placing his bets, potentially turning deep red into deep value if the fundamentals continue to align.
Disclaimer : This article is for informational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions.
