Ashish Kacholia is a name that barely needs an introduction. He is one of India’s Warren Buffett’s known and followed widely for his small cap expertise, which go on to become multibaggers. He currently holds 41 stocks worth Rs 2,427 cr (as per Trendlyne).
Also called the ‘Big Whale’ by media, Kacholia started out with Prime Securities and later joined Edelweiss before incorporating his own broking firm, Lucky Securities in 1995. He also co-founded Hungama Digital with Rakesh Jhunjhunwala in 1999 and started building his own portfolio from 2003.
With those credentials, when someone makes big moves in his portfolio, it makes sense to find out what these changes are, and one owns either of the stocks. Are these buys and sells a hint towards something big coming up or just a strategy plays for the current markets? Let us try to find out.
Qualitek Labs Ltd
Qualitek Labs Ltd was founded in 2018 and it provides testing, inspection, homologation, certification, and consultancy services to various industries viz automotive, defense, metals & metallurgy, environment and water, minerals, food & agriculture, pharma & healthcare.
The current market cap of Qualitek Labs Rs 292 cr, and it was listed on BSE in January 2024. As per the company, the money raised by the IPO was supposed to be used for Capex for new labs and repayment of borrowings from promoters.
Ashish Kacholia has just bought a 5.1% stake in Qualitek Labs, which is over 500,000 shares worth Rs 16 cr.
Now the surprising part is that this fresh stake comes at a time when the company has seen a 26% drop in the promoter holding from 73.35% as on quarter ending September 2024 to 54.19% for the quarter ending March 2025.
The FII (Foreign Institutional Investors) holding saw a jump from 0% to 1.77% in the same period.
Let us look at the company financials to see if we can find out what is it that Ashish sees in Qualitek Labs.
The company reports half yearly results, according to which sales have seen a compounded growth of 66% from Rs 6.35 cr in FY21 to Rs 29.18 cr in FY24. Up until September 2024, the company had already recorded about Rs 21 cr in sales.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Qualitek was Rs 1.03 cr in FY21 which jumped to Rs 8.07 cr in FY24, which is a compound growth of a huge 98%. As for the quarter ending September 2024, Qualitek had logged in Rs 4.48 cr in EBITDA already.
The net profits saw a compound jump of 111% between Rs 0.46 cr in FY21 to Rs 4.31 in FY24. And for the quarter ending September 2024, the profits are about Rs 1.71 cr.
The net profits for FY25 seem a bit concerning unless the company does something out of the box for the quarters ending March 2025.
The share price of Qualitek labs when it was listed in January 2024 was around Rs 199, which has now grown to Rs 322 as on 16th April 2025. That is a jump of 61% in less than 2 years.
Qualitek’s current ROCE is 17.3%, which is higher than the industry median of 14%. ROCE (Return on Capital Employed) means the money the company makes on the capital it employs for the business. In this case, Qualitek makes about Rs 17 on every Rs 100 it spends as capital.
Qualitek’s share is trading at a current P/E of a huge 80x, while the industry median is around 24x. It would be too soon to find a 10-year median PE for Qualitek, but the industry median is 27x.
According to the last investor presentation on the company’s website, Qualitek is setting up a new minerals testing lab under set-up at Bhubaneshwar, the revenue for which is expected from Q1 FY25-26.
The presentation also says that the company has a strong order intake in Automotive and Defence segments. Also, that it is undergoing scope/capacity expansion in Automotive and E&E segments at Pune and Noida labs.
AWFIS Space Solutions Ltd
Awfis Space Solutions Limited, established in December 2014, is an Indian company that provides workspace solutions. 1 They offer a wide variety of flexible options, from single desks to customized office spaces, catering to the needs of startups, small and medium-sized businesses, as well as large national and international companies.
With a market cap of Rs 4,658 cr, Awfis Space Solutions is the largest flexible workspace solutions company with a presence in over 58 micro markets across 18 cities in India.
Ashish Kacholia held a stake in the company since May 2024, when the holding was 4.83%. As of the quarter ending December 2024, the holding was 3.89%, and now he has just cut it further to 2.51%.
AWFIS’s sales have seen a compound growth of 41% from Rs 154 cr in FY19 to Rs 849 cr in FY24. And between April and December 2024, the company logged in sales of Rs 868 cr already, signalling a good upcoming quarter and fiscal year.
EBITDA went from a loss of Rs 33 cr in FY19 to a profit of Rs 246 cr in FY24. And for the period of the 3 quarters between April and December 2024, it has already recorded Rs 286 cr in operating profits.
The net profit is an area of concern as the company has not seen any profits in the last 5 years. AWFIS was making a loss of Rs 62 cr in FY19, which has reduced to Rs 18 cr in FY24, but it had still not seen any profits till March 2024.
However, for the 3 quarters between April and December 2024, AWFIS has recorded profits of Rs 57 cr, which can be seen as a turnaround story.
The company was listed in May 2024 at a price of Rs 421, which has jumped from Rs 656 as on 16thh April 2025. That is a jump of 56% since listing.
The current share price of AWFIS of Rs 656 is still a discount of 30% on the all-time high price of Rs 946.
The company’s share is trading at a current PE of 141x, while the industry median is 25x.
As per the company’s last investor presentation, Chairman and MD, Amit Ramani said “Our strategy continues to focus on asset-light growth with 73% of new seat additions signed under the Managed Office (MA) model. This approach allows us to maximize return on investment while scaling efficiently. I am excited to announce that, as of today, we have surpassed the milestone of 200 operational centers. This achievement reflects our continued growth and commitment to delivering exceptional service.”
Follow The Big Whale for the Hunt?
Ashish Kacholia has made some big moves in his portfolio by picking up a fresh stake in Qualitek Labs and cutting down his stake in Awfis Space Solutions. Qualitek has got him interested with their expertise in testing and certification services clubbed with big growth plans. Seems he is fine with paying a premium to own his stake in Qualitek Labs because he sees something big in them.
Meanwhile, he is lightening up on Awfis even though they are a leader in the co-working world. Maybe the fact that they have not made a profit in 5 years has got him worried. Although, they are getting bigger fast and have recorded profits in 3 quarters of FY25.
These changes give us a peek at how Kacholia balances risks and opportunities in his portfolio. Everyone is wondering what the future holds for these businesses. Can Qualitek, with its advanced labs and strong order book, do the trick, or is it Awfis’s time to pull up their socks? Kacholia’s sharp picks for investing hint at us keeping an eye on these shares. Smart move would be to track these stocks.
Disclaimer
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.