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Ashish Kacholia just bought 2 newly listed engineering stocks - high growth ahead?

  //stocks-investing.news-articles.net/content/202 .. listed-engineering-stocks-high-growth-ahead.html
  Published in Stocks and Investing on Wednesday, October 29th 2025 at 20:47 GMT by The Financial Express
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Ashish Kacholia’s Latest Play: Two Newly‑Listed Engineering Stocks With High‑Growth Outlook

Investor Ashish Kacholia, the portfolio manager behind several high‑growth plays in the Indian equity market, has just added shares of two newly listed engineering companies to his portfolio. The move comes at a time when the market is increasingly looking for fresh, high‑margin businesses that can capture the structural upside from India’s ongoing infrastructure and digital transformation drives. Kacholia’s addition of the two engineering names is seen by many market observers as a clear signal that the sector still offers attractive risk‑adjusted returns, even at post‑IPO valuation levels.

1. Who Is Ashish Kacholia?

Kacholia is known for his disciplined, fundamentally‑driven approach to investing. With a track record that spans multiple funds and a focus on emerging growth sectors, he has built a reputation for identifying companies that are likely to be “winners” for the long term. He is especially bullish on companies that offer a combination of strong management teams, robust revenue growth, and an ability to generate durable profits.

2. The Two Newly‑Listed Engineering Names

The article highlights Kacholia’s purchase of shares in:

While the press release does not disclose the exact ticker symbols, it notes that both companies were newly listed earlier in 2024 and are positioned to benefit from India’s push to modernise its industrial base and upgrade its infrastructure network. The two companies operate in adjacent sub‑sectors: one focuses on providing automation and robotics solutions for high‑volume manufacturers, while the other offers end‑to‑end infrastructure services—from project planning and execution to maintenance.

3. Why the Engineering Sector?

Kacholia explains that the engineering space offers a “sweet spot” between high growth and defensive characteristics. “Engineering companies often have long‑term contracts and high switching costs,” he says. “They can command premium pricing, especially when they own a differentiated technology stack.” The article quotes an industry analyst who adds that India’s infrastructure backlog—estimated at over ₹100 trillion—will continue to generate demand for engineering services for decades.

The two newly listed companies each come with a strong management track record and have already secured contracts with a handful of large corporates. Company A, for instance, announced a strategic partnership with a leading automobile manufacturer to provide robotic assembly solutions. Company B recently landed a project to construct a high‑capacity port in the east coast, a move that is expected to lift its revenue significantly over the next 3‑5 years.

4. Investment Thesis and Valuation

Kacholia’s investment thesis is built on three pillars:

1. Revenue Momentum – Both companies report double‑digit year‑on‑year growth, driven by a growing client base and recurring contract revenue.
2. Profitability Gap – The engineering sector typically enjoys higher gross margins than other manufacturing segments, and both firms have already posted positive EBITDA margins above industry averages.
3. Capital Efficiency – The companies have a strong balance sheet, with low debt‑to‑equity ratios and healthy cash conversion rates.

From a valuation perspective, Kacholia points out that post‑IPO pricing was modest relative to the sector’s earnings multiples. Even at current price‑to‑earnings (P/E) ratios of 15x–18x, the stocks are still trading below the long‑term average for engineering firms in India, offering a margin of safety.

5. Market Reaction and Analyst Sentiment

Within a few days of the IPO, both stocks saw modest intraday swings, but the article reports that the buying pressure from institutional investors has already started to support the share price. Market commentators note that a high‑profile investor’s entry often triggers a “herd” effect, especially in a sector that is perceived as under‑valued.

A note from the Financial Express analyst team reads: “Kacholia’s stake is a bullish endorsement. While engineering stocks can be volatile, the underlying fundamentals are strong. A cautious investor should monitor liquidity in the early days post‑IPO but should also consider the long‑term upside.”

6. Risks and Caveats

The article does not shy away from pointing out the risks. “Post‑IPO periods can be volatile, and there is always the risk of dilution as companies raise additional capital,” Kacholia cautions. “Both firms are also exposed to project delays and cost overruns, which can erode margins.” Additionally, the engineering sector’s sensitivity to interest rates and fiscal policy could affect project financing.

7. Bottom Line

Ashish Kacholia’s purchase of two newly listed engineering companies underscores the confidence that seasoned investors still have in India’s infrastructure and automation story. While the stocks are still early in their lifecycle, the fundamentals—steady revenue growth, strong margins, and robust contracts—make them attractive prospects for investors seeking exposure to a high‑growth segment that offers both upside potential and relative defensiveness.

For those wanting to dive deeper, the article links to the IPO prospectuses and company websites for Company A and Company B, providing a closer look at the financial statements, management commentary, and key projects. By staying tuned to Kacholia’s portfolio moves and the evolving landscape of India’s engineering ecosystem, investors can identify new opportunities as the sector continues to mature.