Ace investor Ashish Kacholia has made a fresh move in the SME segment by investing in V-Marc India, a smallcap multibagger that has delivered over 1,350% returns in just three years, drawing significant attention from market watchers.
Why Did Ashish Kacholia Pick V-Marc India After Its 1,350% Multibagger Run?
Veteran investor Ashish Kacholia, known for identifying niche growth stories, acquired a 2.71% stake in V-Marc India during the September quarter. The company operates in the cables and wires segment and has rapidly scaled up in the small and medium enterprise (SME) space. Despite its impressive 1,350% three-year rally, Kacholia’s entry suggests there could still be value in the story.
What Makes V-Marc India Stand Out in the SME Segment? V-Marc India has evolved from a regional manufacturer to a recognized electrical solutions brand catering to both residential and industrial sectors. The firm’s focus on quality control and backward integration has enhanced its margins. Analysts note that despite steep price appreciation, consistent earnings growth and healthy order books make it a continuing watchlist candidate.
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How Has the Stock Performed Against Broader Indices? The stock, currently trading near ₹542, has outperformed benchmark indices by a wide margin. Over the last three years, V-Marc India returned 1,350%, compared to 55% for the Sensex and 52% for the Nifty. Even on a six-month basis, the stock surged 123%, far ahead of market averages. Such sustained performance underscores strong institutional and retail participation.
Market experts attribute the rally to consistent earnings visibility and diversification into newer high-margin product categories. The company’s expansion into power and control cables and its improved working capital efficiency have added to investor confidence.
Can the Rally Sustain After Kacholia’s Entry? While valuations appear stretched, investors see Kacholia’s presence as a vote of confidence in the company’s management. However, experts caution that SME stocks carry liquidity risks and sharp corrections during market volatility. Hence, risk-adjusted allocation and staggered entries are recommended for new investors.
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Given its stellar growth, investor confidence, and industry expansion, V-Marc India continues to be an SME stock worth monitoring. Long-term value creation will depend on its ability to sustain margins, manage scale efficiently, and maintain growth momentum without excessive leverage.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Kacholia’s latest move in the SME segment signals growing confidence in India’s manufacturing-led midcap story, though investors should remain selective and focus on fundamentals over short-term rallies.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
