For more than a century, the stock market has fascinated people. Stocks are also seen by many as the fastest way to get rich.
Following the investment approach of top investing gurus in India can be a good resource. These investment gurus stand the test of the market and earn high returns. Therefore, by following in their footsteps, money can be gained.
However, it is important to take things carefully. There are other things to consider before following what the Guru says.
Keeping this in mind, we will talk about what Ashish Kacholia bought recently. But before knowing what he bought, let’s talk about who Ashish Kacholia is.
Who is Ashish Kacholia?
When we talk of successful investors in India, it is impossible not to mention Ashish Kacholia. He has earned a net worth of $17 billion by investing in the Indian stock markets.
Ashish Kacholia is known for his identity Best Multibagger Stocks, Hence, he is known as the ‘Big Whale’ of the Indian stock market.
Over the years, they have handpicked the best multibagger stocks by looking at the fastest growing companies from the midcap and smallcap space.
He started his career with Prime Securities in 1993. In 2003, he started Hungama Digital Entertainment Company with Rakesh Jhunjhunwala. He is also the owner of Lucky Securities.
What did Ashish Kacholia buy recently?
This week on Tuesday, August 30, Ashish Kacholia bought 318,000 equity shares of Best Agrolife, a pesticide and agrochemicals company.
The shares mentioned above represent a 1.3% stake in Best Agrolife for The wholesale transaction data shows that 300mt on the NSE. Ashish Kacholia bought these shares here 940.88 per share.
That is, he killed within two days. stock went up from 1,106 922 on Tuesday after the news spread to retail investors. Today, share. climbed another 17% from from 1,106 Yesterday 1,294.
Why did Ashish Kacholia buy Best Agrolife?
While we can’t know for sure why Star Investor bought into it, there are a few reasons we can speculate…
#1 Solid Financials
The first and primary reason may be the profits of the company. Over the years, Best AgroLife has improved its financial position and includes debt metrics.
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As can be seen from the table above, the company has seen decent growth in revenue and profits over the years.
The company has also performed well on a quarterly basis. It reported a 55% increase in its consolidated net profit for the quarter ended June 2022, primarily driven by better sales. overall revenue increased 4.6 billion in the first quarter of this financial year from 3.4 billion in the year-ago period.
on EBITDA 659m, was up 82.7% year-on-year (YoY), while 360.6m in Q1FY22. Margins have also improved to 14.2 per cent from 10.5 per cent in the year-ago quarter.
The company’s Managing Director Vimal Alawadhi said in a statement that the company has maintained its growth momentum in the first quarter of the current financial year.
It is also worth mentioning that last quarter, the company launched Ronfen, the first of its kind proprietary ternary insecticide combination. It is a single-shot solution that controls all sucking pests in various crops like cotton, chillies, vegetables and many more.
According to the management, the initial response has been good. It is expected to pick up in the current quarter. Furthermore, following the acquisition of Best Crop Science last year, the company is expected to enjoy synergy and additional market share.
Recent Launches
In an exchange filing, the company informed yesterday that it has introduced two new CTPR-based formulations. These are aimed at combating harmful insects in various crops including sugarcane, flour etc.
Hence, the stock could be rallying for two reasons, one being the stake buyout by Ashish Kacholia and second, this recent launch.
How Best AgroLife’s stock has performed recently
If the performance of the last two days is considered, then Best Agrolife has been the fastest growing stock of 2022. The stock has gained over 35% in the last two days after Kacholia bought the stake.
Best AgroLife has a 52-week high of It was touched by 1,400 on November 4 last year. Its 52-week low Last year on September 16, 712 touched down.
Over the past year, the stock has risen more than 80%.
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The share price of Best AgroLife is currently trading slightly below its all-time high.
At current prices, Best Agrolife is trading at a PE multiple of 25.7 and a price to book multiple of 7.5. The stock is overvalued if compared with the industry’s 23 times PE and price to book multiples of 4.9.
Talking about the share of the company…
The promoters of the company have recently increased their stake in the company while foreign investors have also shown interest.
about the company
Established in 1992, Best Agrolife is engaged in trading of agrochemical products like insecticides, insecticides, herbicides, fungicides and plant nutrients.
The company’s crop protection chemical products are sold through distributors and commarketing alliances with leading Indian companies across the country. They have a distribution network with over 3000 distributors and direct dealers and over 1,500 retail points across the country.
To know more, see Best Agrolife’s Financial Factsheet,
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
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