Why you should keep this Ashish Kacholia's portfolio stock on the watchlist!

Ashish Kacholia owns a 1.75 per cent stake in the company as per the recent update.

The stock has formed a higher low for the first time after a long time. Starting from its IPO listing on the Indian market, it got listed at a premium of around 21.30 per cent on the listing day at Rs 467 compared to its final IPO issue price of Rs 385 each.

Shares of StoveKraft Limited After listing, it went into consolidation mode for around 3 months. Post that, it gave a price breakout with good volume towards the upside and rallied over 100 per cent as depicted in the image below. From its peak price of Rs 1133.70, it fell and crossed the listing price in March 2023. Post this breakdown, it started recovering slowly and steadily and retraced back to the support as marked on the chart. Finding good support or demand, the stock has again started moving towards the upside from the same support.

Looking at the weekly candle, with one day left to close the week and Monday being a holiday, the candle appears strong. Additionally, the volumes on the weekly timeframe are higher compared to the volumes of the previous weeks.

Ashish Kacholia entered this company and bought 1.76 per cent of shares in March 2022. In March 2023, the stake was reduced to 1.75 per cent, and as per the recent update, it remains stable at 1.75 per cent. The purchase price is not available at the moment, but for reference, we are taking the closing price of that month, which was Rs 613.95 or Rs 614 per share. Computing the profit and loss of this ace investor, he is incurring a loss currently as the stock is currently at Rs 532.50 per share, almost around Rs 82 below the reference purchase price. The stock has not given any multibagger returns for which ace investors generally buy the company’s shares.

From a technical perspective, the stock has started forming higher lows. To gain better confirmation for higher high and higher low formation, it needs to close above the previous swing high of around Rs 590. From this level, the stock has the potential to move around 30 per cent from the current levels.

As per the Quarterly Results, in the fourth quarter of FY24, the company recorded a revenue of Rs 325.23 crore. The operating profit for Q4 FY24 stood at Rs 24.80 crore, resulting an operating profit margin of 7.63 per cent. The net profit for Q4 FY24 was Rs 2.66 crore. Looking at the annual performance, the company generated a revenue of Rs 1364 crore in FY24, compared to Rs 1281 crore in FY23. The operating profit for FY24 was Rs 119 crore, with a net profit of Rs 34 crore.

Investors must keep this Small-Cap stock on their radar.

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