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Investor's Gamble: Two Stocks' Fortunes Examined
5 Aug
Summary
- V-Marc India's stock surged over 4,200% in five years.
- Tanfac Industries trades at a 97x PE, industry median is 21x.
- Both stocks show significant investor gains but carry risks.
Ashish Kacholia, known for investing in small-cap companies, is currently focused on V-Marc India and Tanfac Industries. V-Marc India, a wire and cable manufacturer, has experienced a remarkable 4,200% stock price increase since August 2021. The company reported strong sales growth and net profit jumps in FY26, with a market cap of Rs 3,813 crore. However, it faces scrutiny due to its SME listing status, increased borrowings, and recent queries from the exchange and tax authorities.
Tanfac Industries, a chemical producer, has also seen substantial growth, with its stock rising over 1900% in five years. The company, with a market cap of Rs 6,581 crore, is undergoing a significant expansion. Despite a decade-long turnaround and strong demand for its products, its profits dipped in FY26, and its current PE ratio of 97x is significantly higher than the industry median of 21x.
Both companies represent turnaround stories where early investors have benefited greatly. V-Marc India's risks lie in governance and reporting quality on a thinly traded stock. Tanfac Industries' risks are centered on its high valuation and the execution of its expansion plan. Investors are advised to watch these stocks closely as their next few quarters will be crucial in determining their future trajectory.
