The Big Whale’s Faltering Favourites
Everyone tracks what Ashish Kacholia buys. But not many track what he refuses to sell. That second list is sometimes the more revealing one. And right now, it has two small caps that have spent months sliding towards their 52-week lows while the Big Whale has sat still.
Kacholia runs one of the most closely watched portfolios in India. Public records show disclosed holdings in 48 stocks, with a combined value upwards of Rs 2,890 cr. His playbook is well known. Enter small, unloved companies early. Then sit through drawdowns that would shake out most retail investors.
Two of his current positions are testing that patience. First is a visa outsourcing firm, and the other is a mining and road construction machinery maker. Per the latest filings, he has not sold a single disclosed share of either. What drives this trust or conviction? Let us try to find out.
#1 DU Digital Global: The Visa Tollbooth Under Pressure
If you have ever queued up for a visa appointment, you have seen this business model at work. Incorporated in 2007, DU Digital Global runs outsourced visa processing for embassies and diplomatic missions. It is the human layer between the applicant and the embassy, collecting applications, biometrics and documents.
With a current market cap of Rs 180 cr, the company operates 35 centres across 35 countries, with about 1,300 locations available globally through partner offices. However, the stock was listed on the NSE Emerge platform for SMEs in 2021. SME listed companies are traditionally viewed as risky bets, thanks to the lenient reporting structures and liquidity issues.
The Promoter Exit vs. The Whale’s Patience
Kacholia first showed up in the shareholder list in September 2022 with almost a 5% stake. By October 2023, he had raised it to 9.15% and held it there for a full year. The March 2026 filings show him at 8.53%, a current holding of Rs 16 cr. Being an SME, it reports numbers twice every year in March and September, which we will have to wait for.
The counter-current is worth noting. Promoter holding has dropped from 73.5% in September 2021 to 54% in March 2026. FIIs hold 11.8%. So, while the promoters have steadily diluted, Kacholia has trimmed less than a percentage point from his peak stake.
An analysis of the financials provides a clearer understanding of the company’s fundamentals.
| Financial Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 | 5Y CAGR |
| Sales (Rs cr) | 2.2 | 9.4 | 37.3 | 29.3 | 48 | 54.7 | 90% |
| EBITDA (Rs cr) | 0.5 | 0.5 | 2 | 5.2 | 11.8 | 7.5 | 71% |
| Net Profit (Rs cr) | 0.2 | 0.2 | 0.7 | 0.8 | 3.4 | 6 | 97% |
The Post-Pandemic Reality Check |
One caution before you get carried away by those growth rates: FY21 was a pandemic-crushed base year for a travel-linked business. Sales that year were just Rs 2.2 cr, against Rs 36.8 cr back in FY19 when borders were fully open. Measured against that pre-Covid FY19 baseline, the actual annualized sales growth over the subsequent seven years (through FY26) works out to a much more muted 5.8%. The 5-year CAGRs are mathematically accurate, but optically flattering.
Also, while the FY26 net profit of Rs 6 cr looks like a new record, the core operations tell a different story. Other income for the year was Rs 5.3 cr against a total profit before tax of Rs 6.9 cr. Strip that treasury income out, and the core visa business earned virtually nothing after interest and depreciation. The second half of FY26 actually posted a negative operating profit of Rs 71 lakhs, and an unusually low 13% tax rate flattered the bottom line even further
A 730% Surge, a 48% Crash, and the Liquidity Trap
The share price of DU Digital Global Ltd was around Rs 3 when it was listed in August 2021, which is almost 5 years now. As of 29th July 2026, the price was around Rs 25 which is a jump of over 730% in 5 years.
At the current price, the stock has fallen by over 48% from its 52-week high of Rs 49. As for valuation, the stock is trading at a PE of 31x and the industry median currently is 33x. Since it has been hardly 5 years of the stock being listed, a 10-year median PE will not be of much use.
On the other hand, borrowings of Rs 9.3 cr against a net worth of over Rs 103 cr leave the company almost debt free. The shareholder register remains tiny at just 670 names, so even small trades can move this stock sharply in either direction.
Unmasking the Profit: The ‘Other Income’ Illusion
FY26 profit of Rs 6 cr looks like a new record for the company, but like I shared before, there is something that must be known. Other income for the year was Rs 5.3 cr against a profit before tax of Rs 6.9 cr. Strip that out, and the core visa business earned very little after interest and depreciation. The second half of FY26 actually posted a negative operating profit of Rs 71 lakhs. The tax rate for the year was also unusually low at about 13%, which flattered the bottom line further.
The cash flow statement raises the harder questions. Operating cash flow was negative Rs 10.9 cr in FY24 and negative Rs 18 cr in FY25. Debtor days have stretched to 273, and working capital days now stand at 448. In plain terms, the company books revenue long before the cash arrives. The board approved a fresh fund raise via equity or debt on 28th May 2026, which fits that picture.
There is a timing wrinkle inside FY26 worth flagging too The first half delivered sales of Rs 30.8 cr, an operating profit of Rs 8.2 cr and a net profit of Rs 6 cr. The March 2026 half then added just Rs 4 lakhs to the bottom line. For a business tied to travel seasons and embassy contracts, lumpiness is expected. But it does mean a single strong half is carrying the full-year story.
#2 Gujarat Apollo Industries: The Infrastructure Play That Forgot How to Mine
Incorporated in 1986, Gujarat Apollo Industries manufactures crushing and screening equipment for mining and road construction. It is exactly the sort of stock that should be booming in an infrastructure-obsessed economy, but the financial realities reveal it is functioning more like a treasury fund than an active manufacturer.
With a market cap of Rs 454 cr, the company is funding its expansion, and modernization plans to upgrade manufacturing facilities at both the parent and subsidiary levels, with a committed Rs. 26 cr capital infusion
12 Years in the Red: A Treasury in Disguise
Per the consolidated financials, core operating profit has been negative in every single year from FY15 through FY26. That is twelve straight years of manufacturing losses. The machinery business itself does not make money at the operating level. What keeps the bottom line positive is entirely ‘Other Income’. Mostly earnings from a large pool of investments and financial assets. In FY26, other income stood at Rs 26.3 cr against total factory sales of Rs 53 cr. In short, the treasury is subsidizing the factory
Here are the 5-year financial figures of the company.
| Financial Year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 | 5Y CAGR |
| Sales (Rs cr) | 55 | 55.7 | 71.9 | 56.8 | 41.5 | 53 | -1% |
| EBITDA (Rs cr) | -11 | -3.7 | -5 | -1.9 | -13.7 | -10.8 | Negative |
| Net Profit (Rs cr) | 44.6 | 8.2 | 12.5 | 11.3 | 1.5 | 6 | Negative |
EBITDA refers to operating profit before other income and is negative across the period, so a growth rate does not make any sense for now. The net profit CAGR is marked Negative as well, because the FY21 base was inflated by a one-time other income surge of Rs 98.5 cr.
Decoding the 76x Multiple
The share price of Gujarat Apollo Industries Ltd was around Rs 230 in the last week of July 2021 and as on 29th July 2026 it was Rs 350.
Regarding valuations, the share of the company is trading at a PE of 76x which is more than double compared to the current industry median of 32x. The 10-year median PE for the company is 15x while the industry median for the same period is 27x. But please keep in mind that the company has not seen an operating profit in over a decade, so this valuation might not be of much use.
Valuing the Net Worth Anchor |
The honest yardstick here is book value. As of March 2026, equity capital of Rs 13 cr plus reserves of Rs 494 cr give the company a net worth of about Rs 507 cr. The market values the whole business at roughly Rs 454 cr. At a book value of Rs 391 per share, the stock trades at about 0.9 times book. Borrowings are a modest Rs 40.9 cr. The company has also kept paying dividends, recommending Rs 2 per share for FY26. The payout ratio has averaged a healthy 75% over the last three years.
Promoter Exodus vs. Public Accumulation
In the December 2025 quarter, promoter holding fell from about 52% to 47%, a cut of nearly 5 percentage points. In that exact quarter, Kacholia doubled his stake from 1.06% to 2.29%. He first entered in the June 2025 quarter and has held 2.29% through the June 2026 filings. Public shareholding has swelled to 52.5%, which means the public now owns more of this company than its promoters do.
To be fair to the operating side, FY26 did show a pulse. Sales rose 28% over FY25 to Rs 53 cr, and the March 2026 quarter closed with sales of Rs 12.9 cr and a net profit of close to Rs 2 cr. Whether that marks a turn or just another bounce in a volatile order cycle is the open question.
The risks are just as plain. Return on equity was 1.2% last year. Sales are lower today than they were a decade ago. Operating cash flow was negative Rs 39 cr in FY26, with inventory sitting on the books for over 300 days. Around 9,315 shareholders now hold this stock, and cheap assets only reward them if something eventually unlocks the value. Holding companies and asset plays can trade below book for years without a catalyst.
Patience Bets or a Value Traps?
When you look at both these Big Whale favourites, neither of them is a momentum trade. DU Digital is a bet that a fast-growing visa franchise will eventually convert paper profits into cash. Gujarat Apollo is a bet that a company priced below its own net worth, with promoters stepping back and public holders stepping in, cannot stay ignored forever. One is a growth story with a cash flow problem. The other is a value story with a growth problem.
Both bets carry real risks, and the filings do not hide them. Stretched receivables in one. A loss-making core operation in the other. What Kacholia brings to both situations is the one thing most retail investors near a 52-week low cannot summon. Patience. Whether that patience gets paid this time is a question only the next few quarters can answer.
A smart idea would be to add both these stocks to a watchlist and follow them closely, so as to not miss out on any big movements.
Disclaimer:
Note: We have relied on data from http://www.Screener.in and http://www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, he was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.