Ashish Kacholia Stock in Which Analyst Expects PAT CAGR of 60%; Do You Own It?

Synopsis: Choice Institutional Equities expects 60 percent PAT CAGR driven by a 40 billion order book, exports, capacity expansion, margin improvement, and asset monetisation. Ace investor Ashish Kacholia holds over a 3 percent stake in the company.

A small-cap industrial stock backed by ace investor Ashish Kacholia is drawing attention after Choice Institution Equities projected a robust 60 percent PAT CAGR over FY25- FY28E. Additionally, the brokerage also stated that the company is supported by a strong export-heavy order book, capacity expansion plans, and margin improvement, and the company is positioned for multi-year growth momentum.

With a market cap of more than Rs 3200 Cr, Man Industries (India) Ltd is the stock in context, and this company has seen its stock give a compounded return of 70 percent in the last 3 years.

What does the company do?

Man Industries (India) Ltd is a leading manufacturer and exporter of large‑diameter carbon steel line pipes, supplying products like LSAW, HSAW and ERW pipes with advanced anti‑corrosion coatings for high‑pressure oil, gas, water and industrial transmission applications. Founded in 1988 and part of the Man Group, it operates state‑of‑the‑art facilities in Gujarat and Madhya Pradesh with a global market presence. 

The company has a strong footprint in both- the Indian and global energy and infrastructure sectors, with major domestic clients such as GAIL, IOCL, HPCL, BPCL, ONGC, Reliance, Adani, EIL, BHEL, L&T and Petronet India Ltd, while the International ones include SHELL, Kinder Morgan, Kuwait Oil Company, Hyundai Engineering & Construction Ltd., PetroBangla and PETROBRAS, among others

What does the broker tell?

The brokerage stated that Man Industries (India) Ltd had a strong order book of Rs 40 billion which is to be completed over the next 6- 12 months, additionally they also have a bid pipeline of Rs 115 billion, and with the 20- 30 percent win ratio for these, it ensures strong multi-year revenue visibility and execution continuity.

The company is commissioning a 300 KT H-SAW pipe plant in Saudi Arabia by Q1 FY27 and a 22 KT stainless steel pipe facility in Jammu by Q2 FY27. With 75 percent capex already executed, these plants are expected to significantly boost revenues and margins from FY27.

The brokerage forecasted that the EBITDA margins are projected to expand by nearly 562 basis points over FY25- FY28E, driven by a higher share of value-added products, improved geographic mix, and operating leverage benefits from higher capacity utilisation across existing and upcoming plants.

Exports account for 83 percent of the Rs 40 billion order book, reflecting strong international presence. This high export mix diversifies revenue streams across geographies, reduces dependence on the domestic market, and positions the company to benefit from global oil, gas, and water infrastructure demand.

Monetisation of the Navi Mumbai land parcel through the Marino Shelters project is expected to generate around Rs 7.5 billion over the next 5- 6 years. The cash inflow, largely cost-free, will support debt reduction and help fund ongoing and future expansion plans.

With all these major points, the brokerage has projected a strong earnings trajectory over FY25- FY28E, with revenue CAGR of 30 percent, EBITDA CAGR of 53 percent, and PAT CAGR of 60 percent. This growth is backed by a solid order book, margin expansion, capacity additions, and improving return ratios.

Ace Investor Holding

As of Q3FY26, Ashish Kacholia holds a little over 3 percent stake in the company. According to available sources, the ace investor initially acquired a little over a 2 percent stake in Q4FY24, which has now increased by 90 basis points to reach the current 3 percent plus holding.

Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 13 percent YoY, from Rs 732 Cr in Q3FY25 to Rs 830 Cr in Q3FY26, while the QoQ decreased by less than a percent from Rs 834 Cr. The net profits grew by 62 percent going from Rs 34 Cr in Q3FY25 to Rs 55 Cr in Q3FY26, while the QoQ increased by 49 percent from Q2FY26’s Rs 37 Cr.

The company has a 3 year sales CAGR of 18 percent, while the TTM is at 17 percent. The company’s 3 year profit CAGR is at 14 percent, while the TTM number is at 72 percent. The company also has a ROCE of 16 percent and a ROE of 10 percent.

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