Advait Infratech Limited has announced strong financial performance for the quarter ended March 2024, with a 139.10% year-over-year increase in Profit After Tax (PAT) and secured funding of INR 82.3 crore.
Investors in the stock market are always looking for ways to make informed decisions.
One popular strategy is to track the activity of successful investors. These market gurus are believed to have a keen eye for spotting good opportunities.
Retail investors, those who invest for their own personal accounts, can learn a lot by following the trades of ace investors.
Public filings track changes in ace investors’ holdings. This reveals what stocks they are buying and selling, offering a glimpse into their investment strategies.
For instance, a BSE filing on 30 May 2024, revealed that Ashish Kacholia, a well-known ace investor in India, has recently bought a large amount of shares in a power transmission company.
But before we explore this specific activity, let’s get to know Ashish Kacholia better and understand why his investment choices are noteworthy.
Who is Ashish Kacholia?
When we talk about successful investors in India, it’s common to mention Ashish Kacholia.
Kacholia is known for identifying the best multibagger stocks. He is known as the ‘Big Whale’ of the Indian stock market.
Over the years, he has picked 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 along with Rakesh Jhunjhunwala. He is also the proprietor of Lucky Securities.
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Which Stock Did Ashish Kacholia Buy and Why?
The company in question is Advait Infratech.
According to the BSE filling Ashish Kacholia bought 288,185 shares of Advait Infratech on 30 May 2024 at a price of Rs 1,388 per share.
This represents 2.67% stake of the total equity.
This is the first instance of Kacholia buying this stock.
While we don’t know why he bought shares of Advait Infratech, there are some reasons that we can guess.
#1 Good Financial Performance
Between 2019-2023, the net sales and profits have registered at a 5-year compounded annual growth rate (CAGR) of 29.7% and 26.5%, respectively.
The returns are also strong, with a 5-year average RoCE and RoE of 19.1% and 12.7%, respectively.
Advait Infratech Financial Snapshot (2019-23)
| Year | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Revenue (Rs in m) | 280 | 445 | 657 | 787 | 1,027 |
| Profit after tax (Rs in m) | 25 | 5 | 48 | 53 | 81 |
| Gross profit margin (%) | 14 | 11 | 8 | 13 | 16 |
| Net profit margin (%) | 9 | 1 | 7 | 7 | 8 |
| Return on capital employed (%) | 16 | 16 | 14 | 23 | 26 |
| Return on equity (%) | 13 | 3 | 15 | 14 | 18 |
Data Source: Ace Equity
Even the company’s FY24 financial performance was quite good. The company reported a net profit of Rs 218.8 million (m) for FY24, a 159% increase compared to Rs 84.4 bn in FY23.
Rising power demand across India created a favourable market for Advait Infratech’s transmission capacity.
Advait Infratech’s revenues also saw a healthy increase of 99.9% to Rs 2,117.2 m in FY24, primarily driven by the surge in power demand.
The EPS of the company increased to Rs 21.5 in FY24 from Rs 13.2 in FY23.
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#2 Foray into New Businesses
Recognising the tremendous potential in the burgeoning green energy sector, Advait Infratech made a strategic foray in 2023 with the launch of Advait Greenergy.
It is a subsidiary dedicated to making green energy solutions accessible and affordable across India through cutting-edge technology.
By entering into the green energy sector, Advait Infratech demonstrated their ability to identify and capitalise on emerging opportunities.
The sectoral tailwinds in the green energy sector boosted investor confidence for the power transmission company.
Further solidifying their commitment to diversification, Advait Infratech ventured into the IT/IoT domain in January 2024. This new venture focuses on developing software and integrating solar pump devices/smart meters for real-time data monitoring and fault management.
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How Advait Infratech Share Price has Performed Recently
In the past five days and in the last month, Advait Infratech share price fell 4.9%.
In 2024, so far it surged more than 143.9% and more than 381% in the last year.
The stock touched its 52-week high of Rs 1,745 on 24 April 2024 and a 52-week low of Rs 273.3 on 19 June 2023.
About Advait Infratech
Advait Infratech is an India-based company, which is engaged in providing products and solutions for power transmission, substation, and telecommunication infrastructure.
It operates with various verticals such as turnkey telecommunication projects, installation of the power transmission, substation and telecom products, marketing, and providing end-to-end solutions to the customers.
The company manufactures and supplies capital stringing tools for the construction of the transmission line. It is involved in manufacturing optical fiber ground wire (OPGW), OFC cables, aluminum-clad steel wire, emergency restoration systems, and OPGW joint boxes.
It provides live-line and off-line installations of the OPGW system. Its service range includes survey, erection, jointing, and commissioning until end-to-end line testing.
The company also offers emergency restoration systems, porcelain and composite insulators, glass disc insulators, and earthing solutions stringing tools.
To know more about the company, check out Advait Infratech’s fact sheet and quarterly results.
You can also compare Advait Infratech with its peers.
Advait Infratech vs KPT Industries
Advait Infratech vs Disa India
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