Portfolio Underperformance: Five Stocks from Ashish Kacholia’s Holdings

[Ravi]

Five companies within Ashish Kacholia’s portfolio have underperformed in 2025. Despite weak share price movements, each presents distinct operational strengths and strategic initiatives that could support medium-term recovery.

1. Walchandnagar Industries

Business Overview:

Walchandnagar Industries, with over 100 years of operating history, is engaged in heavy engineering, project execution, and hi-tech manufacturing. Its key segments include heavy engineering, foundry & machine shop, and specialized services.



As of June 2025, Kacholia held a 2.6% stake valued at ~₹320 million.

Financial & Operational Highlights:

FY25 order book: ₹9.1 billion (+₹2.5 billion in fresh orders).

Secured a record-setting 64-metre HF kiln order, the longest globally.

FY25 revenue mix: Heavy Engineering 77%, Foundry & Machine Shop 14%, Exports 4%.

Capex plan of ₹8.4 billion; ₹3.8 billion deployed, remainder to be completed by Q3FY26.

Acquired 60% stake in Aicitta Intelligent Technology, entering intelligent automation.

Assessment:

While operational momentum remains intact, margin expansion and successful execution of the planned modernization programme will be critical for a rerating.

2. Fineotex Chemical

Business Overview:

Fineotex Chemical is a specialty chemical manufacturer with a core presence in textile auxiliaries and performance chemicals, complemented by diversification into construction, water treatment, fertilizers, leather, and paints. Its product portfolio exceeds 470 formulations.

Shareholding:

Kacholia held a 2.7% stake valued at ~₹765 million (June 2025).

Financial & Operational Highlights:

FY25 revenue: ₹5.6 billion (flat YoY).

FY25 net profit: ₹1.1 billion vs ₹1.2 billion in FY24.

FY25 ROCE: 23.6%; ROE: 18.3% (decline due to expanded capital base).

Installed capacity: 104,000 MTPA (India & Malaysia); utilisation at 64% in Q1FY26.

Expansion: Ambernath facility Phase I to add 18,000–20,000 MTPA by FY26-end.

Raised ₹3.4 billion via preferential allotment to fund expansion and acquisitions.

Strategic partnerships: Eurodye-CTC (Belgium), HealthGuard (Australia).

Assessment:

Near-term pressure on margins due to elevated brand-building spend, though medium-term growth visibility remains supported by capacity expansion and international collaborations.

3. Zaggle Prepaid Ocean Services

Business Overview:

Zaggle operates across fintech and SaaS, providing spend management platforms, prepaid card solutions, and vendor payment systems. With over 50 million prepaid cards issued, it is India’s largest issuer.

Shareholding:

Kacholia owned a 2.2% stake valued at ~₹1.23 billion (June 2025).

Financial & Operational Highlights:

Stock declined 32% in 2025 (₹550 → ₹368).

Q4FY25 revenue: ₹4.1 billion (+51% YoY).

Q4FY25 adj. EBITDA: ₹380 million (+40% YoY).

Q4FY25 net profit: ₹320 million (+67% YoY).

Propel platform revenue growth: +91% YoY.

Key launches: AI chatbot (RazBot), corporate credit cards, vendor management platform (Zoyer).

Clients: Tata Steel, Persistent Systems, Hiranandani Group.

Banking partners: Kotak, IndusInd, Axis, SBI, Yes Bank.

M&A: 98% stake in Span Across IT Solutions, 26% in Mobileware Technologies.

Assessment:

Despite significant stock price correction, fundamentals remain strong with consistent revenue growth and product innovation. Strategic partnerships and acquisitions enhance long-term positioning in digital spend management.

4. Balu Forge Industries

Business Overview:

Balu Forge Industries is engaged in precision engineering, with core products including forged crankshafts, railway wheels, clutches, hydraulic motors, and brake parts. The company is aligning its capabilities with evolving emission norms and next-generation energy vehicles.

Shareholding:

Kacholia’s stake stood at 1.6%, valued at ~₹1.14 billion (June 2025).

Financial & Operational Highlights:

FY25 revenue growth: +71% YoY.

Q1FY26 revenue growth: +58% YoY.

End-market demand drivers: Railways, defence, oil & gas, commercial vehicles.

Export footprint: 80+ countries; supplier to 25+ global OEMs.

Current machining capacity: 32,000 MTPA.

Forging capacity expansion: Targeting 72,000 tons via new Belgaum facilities.

Raised ₹5 billion (Sep 2024) via equity & warrants to fund expansion and R&D.

Migrated to NSE main board, improving visibility and liquidity.

Assessment:

Strong revenue trajectory supported by diversified demand and export presence. Execution of capacity expansion and product diversification into advanced alloys are key catalysts for sustained growth.

5. Safari Industries

Business Overview:

Safari Industries is among India’s largest luggage manufacturers, with operations across hard and soft luggage. Hard luggage is manufactured domestically at Halol, Gujarat, while soft luggage is largely imported. Its brand portfolio includes Safari, Magnum, Genius, Genie, and Urban Jungle.

Shareholding:

Kacholia held a 1.8% stake valued at ~₹1.86 billion (June 2025).

Financial & Operational Highlights:

FY25 revenue: ₹17.7 billion vs ₹15.5 billion in FY24.

FY25 net profit: ₹1.4 billion vs ₹1.8 billion in FY24.

FY25 revenue mix: Hard luggage 54%, Soft luggage 46%.

Distribution: Retail, CSD, B2B, B2C, and leading e-commerce platforms (Amazon, Flipkart).

Strategic priorities: Scale up hard luggage, strengthen premium positioning, and expand D2C channels (safaribags.com, genietravel.com, urbanjungle.shop).

Assessment:

While revenue growth remains intact, profitability has been impacted by margin pressures. Strategic emphasis on premiumisation and D2C channels could aid recovery in medium term.