Ashish Kacholia bought 5,47,200 shares of VFX stock; hits 52-week high, locked at upper circuit: will the rally continue?

Ace investor Ashish Kacholia, a well-known name on D-Street, translating to a substantial 2.35 per cent of the total shares.

In the midst of a gloomy Monday for the Indian stock market, where benchmark indices Nifty and Sensex experienced almost 1 per cent correction, one stock stood resilient against the tide – Basilic Fly Studio Ltd (BFS). While the sea of red engulfed various sectors, including Nifty PSU Bank and Nifty FMCG, BFS soared beyond the downward trend, locking its stock price at an upper circuit limit of 10 per cent and registering a fresh 52-week high, pushing its valuation past the Rs 1,000 crore market capitalization.

Established in 2016, Basilic Fly Studio has evolved into a leading visual effects (VFX) studio headquartered in Chennai, India, with subsidiaries in Canada and the UK. Specializing in creating captivating visual experiences, BFS consistently pushes the boundaries of creativity and technology, delivering exceptional VFX solutions for movies, TV shows, web series, and commercials.

Renowned for its high-quality output and commitment to adopting the latest technology, BFS has become a stalwart in the VFX industry. Its team of skilled artists has earned a reputation for excellence, serving clients globally across various platforms.

From its humble beginnings in an 800-square-foot workspace with a handful of employees, BFS has achieved remarkable milestones, now standing as a hub for the best industry talents with over 10,000 completed projects and a team of around 500 members. BFS has collaborated with more than 300 clients, establishing a global presence with offices in Chennai, Pune, London, and Vancouver.

The standout performance on Monday can be attributed to a significant development in BFS's shareholding pattern. Ace investor Ashish Kacholia, a well-known name on D-Street, made a notable entry into the list of shareholders in December 2023, acquiring 5,47,200 shares, translating to a substantial 2.35 per cent of the total shares.

BFS's success is not just its own; it mirrors the booming global VFX industry. With the sector rapidly growing, driven by the increasing demand for high-quality content, particularly in the entertainment and media sectors, India holds significant potential in this dynamic landscape.

According to research by Boston Consulting Group (BCG) and the Confederation of Indian Industries (CII), the Indian animation and visual effects industry have the potential to capture 20 to 25% of the worldwide AVGC market, generating 75,000 to 120,000 jobs.

As BFS continues to soar, it exemplifies the broader potential and impact of the Animation and VFX sector in India, extending its reach beyond entertainment to gaming, education, branding, and marketing.

The stock has jumped 55.60 per cent in the last one-week and it has an ROE of 156 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.