Ace Investor: Ashish Kacholia has recently added this dining food chain stock to his portfolio

Ashish Kacholia has bought a 1.1% stake in the company.

As of August 1, he currently has 38 stocks in his portfolio, worth Rs 1773.7 crore. In 1999, Ashish Kacholia and Rakesh Jhunjhunwala co-founded Hungama Ltd. Later, Kacholia began fully focusing on managing his personal portfolio.

With the long-term investment approach, Ashish Kacholia is renowned for identifying undiscovered gems in the small-to-midcap category, which have a high potential to deliver multibagger returns for their shareholders. He had made early investments in multibagger stocks like APL Apollo Tubes Ltd, Apollo Tricoat, NIIT Ltd., Birlasoft, and Vaibhav Global.

According to June quarterly filings, Kacholia has added 3 new stocks to his portfolio, one of which is Barbeque-Nation Hospitality Ltd. He has purchased a 1.1% stake in the company which is worth Rs 47.7 crore. He holds 409,094 quantity of equity shares of the company.

Barbeque-Nation Hospitality Ltd belongs to the S&P BSE Small-cap index and has a market capitalisation of Rs 4660 crore.

Incorporated in 2006, Barbeque-Nation Hospitality Ltd owns and manages India’s top casual dining restaurant chain. Through ‘Barbeque Nation’ restaurants, the company pioneered the table barbeque concept. In their restaurants, customers can grill their own barbecues on live grills built into the dining tables.

Talking about financials, the company has reported a net loss for the last 4 fiscal years straight. For FY22, the company’s revenue stood at Rs 861 crore and operating profit of Rs 134 crore with a 16% operating margin. However, the net loss was recorded at Rs 26 crore. One thing to highlight about the company is that it has a negative cash conversion cycle.

About the company’s shareholding pattern, the promoter has a low holding stake at 33.98%, FIIs and DIIs together hold 43.3%, and the rest 22.72% stake is owned by the non-institutional investors.

The stock is trading 11.76 times its book value of Rs 99.1 crore. The stock has a 52-week high and low of Rs 1949.7 and Rs 851.75 crore.