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Banking, Equities, Market News - June 21, 2025

Aeroflex Industries jumps 29% in three days on Kacholia backing.

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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Market News - June 20, 2025

Zaggle Prepaid: Ashish Kacholia-Backed Stock Delivers Multibagger Returns in Under Two Years

Zaggle Prepaid: Ashish Kacholia-Backed Stock Delivers Multibagger Returns in Under Two Years

Since its debut in September 2023, Zaggle Prepaid Ocean Services has rallied more than 160%, delivering substantial gains to early investors and gaining recognition for its solid growth trajectory, strategic expansion initiatives, and strong support from institutional investors.

Introduction
India’s capital markets have witnessed several breakout performers in recent years, but few have matched the meteoric rise of Zaggle Prepaid Ocean Services. Listed in September 2023, the company has not only outperformed the sector but has also become a multibagger, generating substantial wealth for its investors—including noted investor Ashish Kacholia. The journey of Zaggle’s stock price, underpinned by strong fundamentals and strategic growth, offers a compelling story of innovation and resilience in the fintech space.

Stock Performance: A Multibagger in Focus
Since its listing, Zaggle Prepaid shares have soared over 160%, with the price rising from its IPO levels to recent highs above ₹400 per share. The stock’s 1-year return stands at more than 40%, and its three-year CAGR is an impressive 166%. While the past month has seen a correction of nearly 19%, reflecting broader market volatility, the long-term trajectory remains upward.
Notably, the company’s 52-week range extends from ₹278 to ₹591.90, highlighting both the explosive growth and recent bouts of profit-taking. Despite the correction, Zaggle’s market capitalization remains robust, currently around ₹5,400 crore.

Ashish Kacholia’s Stake and Institutional Confidence
Ashish Kacholia, renowned for identifying high-growth potential companies, holds a significant stake in Zaggle Prepaid. His involvement has boosted market confidence, attracting both retail and institutional investors. During the March 2025 quarter, promoter stake rose from 40.09% to 44.21%, reflecting the management’s strengthened confidence in the company’s long-term prospects. Foreign institutional investors and mutual funds also maintain meaningful positions, with retail investors holding over 34%.

Financial Performance and Growth Drivers
Earnings and Revenue:
Zaggle reported a 62.5% year-on-year increase in net profit for Q4 FY25, reaching ₹31.14 crore, while its quarterly profit rose by nearly 58% compared to the preceding quarter.
The company’s revenue for FY25 exceeded analyst estimates by 8.6%, underlining robust demand for its products and services. Analysts forecast average annual revenue growth of 25% for the next three years, well above the industry average of 13%.
Operational Efficiency:
Despite its swift expansion, Zaggle has kept its cost structure efficient, allocating under 1% of operating revenue to interest expenses and slightly over 5% to employee costs in FY25.
This operational discipline has contributed to a healthy return on capital employed (ROCE) of 13.3% and a return on equity (ROE) of 10.8%.
Analyst Ratings:
The stock enjoys a unanimous ‘Buy’ recommendation from analysts, with an average target price of ₹612.50—implying a potential upside of 45% from current levels. The bullish outlook is supported by expectations of continued earnings growth and strategic expansion.

Expansion, Innovation, and Strategic Moves
Zaggle has actively broadened its portfolio by pursuing strategic acquisitions and forging key partnerships.
In June 2025, the company invested in Greenedge Enterprises, enhancing its presence in the digital payments and SaaS space. The company’s focus on AI-driven product innovation and global expansion has positioned it as a leading player in the rapidly evolving fintech landscape. The company’s ability to raise its promoter holding and attract institutional capital is a testament to its strong governance and growth prospects.

Valuation and Industry Comparison
Zaggle trades at a price-to-earnings (P/E) ratio of around 61.9, higher than the industry average, reflecting investor optimism about future growth. Its price-to-book (P/B) ratio is 4.54, and the company does not currently pay dividends, preferring to reinvest profits into business expansion.
Compared to its peers in the IT and software sector, Zaggle’s five-year CAGR of 166% stands out, while its debt-to-asset ratio remains manageable at 0.52. The company’s market cap ranks it 18th in its sector, underscoring its growing influence.

Risks and Recent Volatility
While the long-term story is strong, Zaggle has not been immune to short-term corrections. The past month saw a nearly 19% drop in share price, and search interest in the stock has also declined by 15%. Analysts caution that the high valuation and recent earnings miss relative to expectations could lead to continued volatility. However, the company’s strong fundamentals and growth trajectory provide a buffer against temporary setbacks.

Conclusion
Zaggle Prepaid Ocean Services has emerged as a standout performer since its 2023 IPO, delivering multibagger returns to its investors and earning the endorsement of prominent names like Ashish Kacholia. The company’s robust earnings growth, strategic acquisitions, and expanding institutional ownership underpin a positive outlook, even as short-term volatility persists. For investors seeking exposure to India’s fintech and SaaS growth story, Zaggle remains a compelling, if high-beta, opportunity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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