Ashish Kacholia Invests in Yuken India

Ace investor Ashish Kacholia, renowned for his strategic small-cap stock picks, has made a notable entry into Yuken India, a small-cap company specializing in hydraulic equipment. Kacholia's investment firm, Bengal Finance and Investment, acquired a 1.53% stake, amounting to 1,98,937 shares, in Q3 FY25.

The company's latest shareholding pattern revealed Kacholia's fresh entry, as he was absent from the September quarter's shareholder list. This indicates that his holding, if any, was previously below the 1% disclosure threshold.

Other Key Shareholders

In addition to Kacholia, the Life Insurance Corporation of India (LIC) holds a significant stake in Yuken India. The LIC MF Aggressive Hybrid Fund owns a 1.07% stake, highlighting institutional interest in the company.

Stock Market Reaction

News of Kacholia’s investment propelled Yuken India’s stock price by 14% on January 9, 2025, closing at ₹1,149.90 per share on the BSE. Despite the recent rally, the stock has demonstrated mixed performance over different periods:

• 1-Year Return: +52%
• 6-Month Return: -13%
• 1-Month Return: -4%

The company's market capitalization now stands at ₹1,470 crore, placing it among the BSE Smallcap Index constituents.

About Yuken India

Founded in 1976 in collaboration with Yuken Kogyo Company Limited of Japan, Yuken India has built a strong reputation in the hydraulic equipment manufacturing sector. The company’s product portfolio includes vane pumps, piston pumps, and pressure controls, catering to both domestic and international markets. Yuken India exports to over 15 countries, reinforcing its global presence.

Financial Performance

The company has shown consistent growth:

• Q2 FY25 Revenue: ₹115.65 crore, up 14% YoY from ₹101.47 crore in Q2 FY24.
• Q2 FY25 Profit: ₹7.01 crore, a substantial 76% YoY surge from ₹3.98 crore in Q2 FY24.

The robust financial performance highlights Yuken India’s ability to capitalize on rising demand for hydraulic equipment, supported by its focus on innovation and operational efficiency.

Why Yuken India Attracted Kacholia’s Interest

Kacholia’s investment in Yuken India aligns with his strategy of identifying high-growth small-cap companies with strong fundamentals and industry leadership. Yuken India’s consistent revenue and profit growth, coupled with its expanding market footprint, likely contributed to its appeal.

Future Prospects

Yuken India’s emphasis on technological advancements and its partnership with Japan-based Yuken Kogyo provide a competitive edge. With rising global demand for hydraulic equipment and increasing industrial automation, the company is well-positioned for sustained growth.

Investor Outlook

Ashish Kacholia’s stake acquisition often signals a positive outlook, attracting retail and institutional interest. However, investors should assess market volatility and consider the company’s financial health before making investment decisions.

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