Whalesbook
Investor Bets on Promising SMEs
Ashish Kacholia and Mukul Agarwal, often dubbed India's 'Warren Buffetts', have injected fresh capital into two small and medium enterprise (SME) stocks, Monolithisch India and Adcounty Media India. These moves highlight investor confidence in the potential of fundamentally strong, albeit smaller, listed entities.
Monolithisch India's Manufacturing Prowess
Monolithisch India, a manufacturer of specialized ramming mass used in induction furnaces for the iron and steel sectors, has seen significant backing. Mukul Agarwal has adjusted his stake, currently holding 2.76% of the company. Since its listing in June 2025, Monolithisch India has demonstrated robust financial growth. Sales have surged at an 81% compound annual growth rate (CAGR) from FY20 to FY25, reaching ₹97 crore. Net profits have also jumped impressively, with a 114% CAGR, hitting ₹14 crore in FY25. Its capital efficiency is remarkable, with a current Return on Capital Employed (ROCE) of 61%, far surpassing the industry median.
Adcounty Media's Digital Expansion
Ashish Kacholia has taken a new 2.9% stake in Adcounty Media India, an adtech and digital media solutions provider. The company has recorded a 30% CAGR in sales over the same period, reaching ₹69 crore in FY25, and its EBITDA has grown by 78% CAGR. Profits saw a 70% CAGR. Adcounty Media also boasts exceptional capital efficiency with a 63% ROCE, while maintaining an almost debt-free balance sheet. Despite a recent dip in its share price from its all-time high, Kacholia's entry signals belief in its digital strategy.
Navigating SME Market Risks
Investors are cautioned that both Monolithisch India and Adcounty Media are listed on the SME exchange. This segment carries inherent risks, including lower liquidity due to fixed lot trading sizes and a higher susceptibility to market manipulation. Lenient reporting standards can sometimes obscure a company's true financial health, necessitating thorough due diligence beyond the headline figures.
However, the appeal of near-zero debt and exceptionally high ROCE, combined with strong revenue and profit growth, continues to draw sophisticated investors like Kacholia and Agarwal, who are adept at identifying value in less-charted territories.