Aeroflex Industries jumps 29% in three days on Kacholia backing.
Specializing in stainless-steel flexible hoses, small-cap player Aeroflex Industries has seen its stock price soar by almost 29% over the past three sessions. The surge comes amid strong value buying, increasing investor interest, and the backing of well-known investor Ashish Kacholia, who has steadily increased his stake in the company. The sharp upswing has sparked discussions in market circles regarding the stock’s potential and the company’s growth prospects.
Strong Rally Driven by Heavy Volumes
Aeroflex Industries’ stock rallied approximately 11% on June 20, 2025, closing near ₹216–₹217 per share, its strongest level in nearly four months. This rally is not a one-day phenomenon. In the last three consecutive trading sessions, the stock has surged a remarkable 29%, fueled by unusually heavy trading volumes.
The BSE recorded trading volumes exceeding 87 lakh shares, significantly higher than the company’s two-week average of about 6.97 lakh shares. Such a sharp increase in volume suggests that aggressive buying interest is supporting the current uptrend. Analysts view this surge as a technically driven move, supported by strong market momentum.
Technical Breakout and Bullish Indicators
Technical charts have confirmed a breakout for Aeroflex Industries. The stock has convincingly moved above its key moving averages ranging from the 5-day to the 200-day averages. Additionally, the Relative Strength Index (RSI) has crossed 80, indicating a strong bullish sentiment, though now approaching overbought territory.
The Moving Average Convergence Divergence (MACD) indicator has also flashed a positive crossover, confirming the upward momentum. These signals, along with significant volumes, suggest that the current rally is well-supported by market participants.
Ashish Kacholia’s Growing Stake Boosts Confidence
One of the key reasons driving optimism around Aeroflex Industries is the involvement of ace investor Ashish Kacholia, who is known for spotting multi-bagger small-cap stocks. According to March 2025 shareholding records, Kacholia raised his stake in the company to 1.92%, compared to 1.8% in December 2024.
Kacholia’s steady accumulation has boosted confidence among retail and institutional investors alike. His presence is often seen as an endorsement of a company’s future potential, especially within the small-cap space.
Strong Post-IPO Performance
Aeroflex Industries made its stock market debut in August 2023, with its IPO priced at ₹197 per share. On the listing day, the stock saw an impressive 83% premium, closing significantly higher than its issue price. Since its debut, the stock has roughly doubled, reflecting investor faith in the company’s growth trajectory.
Despite some periods of price consolidation, the stock has managed to retain market interest due to its solid business model and steady financial growth.
Financial Performance and Growth
In the fourth quarter of FY25, Aeroflex Industries posted a 16% year-on-year increase in revenue, totaling ₹92 crore. Net profit for the same period grew by 12% year-on-year to approximately ₹11 crore. Aeroflex Industries also posted a 21% rise in EBITDA, which reached ₹19 crore, with the EBITDA margin improving to 20.7%.
The company reported a solid full-year performance in FY25, with revenue rising by 18% and net profit growing by 26% to ₹53 crore. This steady financial growth has provided a strong foundation for the recent rally and justified investor optimism.
Operational Expansion and New Product Launches
Aeroflex Industries is not only growing financially but also expanding operationally. In January 2025, the company commenced the production of Metal Bellows, a specialized product used in various industrial applications. The annual production capacity for Metal Bellows is now pegged at 120,000 units.
Furthermore, the company has expanded its stainless-steel hose production capacity from 15 million meters to 16.5 million meters per year. Its composite hose manufacturing capability has also doubled from three lines to six lines, indicating the company’s readiness to meet growing market demand.
Valuation and Market Metrics
The company currently has an estimated market capitalization of approximately ₹2,700 crore. Its price-to-earnings (P/E) ratio ranges between 48x to 53x, which is relatively high, reflecting the market’s growth expectations. The price-to-book (P/B) ratio stands around 8.5x, and the stock has exhibited high volatility, with a beta close to 1.6.
While valuations appear stretched, the company’s growth trajectory, operational expansion, and high-profile investor backing seem to justify the premium at this stage.
Conclusion
The recent rally in Aeroflex Industries highlights a powerful combination of technical momentum, strong financial performance, and investor backing from seasoned market participants like Ashish Kacholia. The company’s proactive expansion efforts, new product offerings, and consistent earnings growth have further strengthened investor conviction.
As the stock continues to attract attention, particularly from value and momentum investors, Aeroflex Industries appears well-positioned to maintain its upward momentum in the near term. However, given the recent sharp rise, market participants may watch for potential consolidation before the next leg of the rally unfolds.
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