For anyone who has been even close to Indian markets, volatility is no novelty. And in such volatile markets, Indian investors are always looking for the next big thing. So, when the Warren Buffetts of India make moves, the investor circles take notes.Two of such Warren Buffets of India, Ashish Kacholia (Holds 49 stocks worth Rs 2,586 cr) and Mukul Agarwal (Holds 70 stocks worth Rs 6,772 cr) have just made two fresh changes to their portfolios. Investors who follow them closely have been trying to find out all about these two moves.
The SME Health Warning: Liquidity and Manipulation
Before we dive into these two stocks, please note that both stocks are listed in the SME exchange. Buying SME stocks comes with a significant warning: buyer beware. The requirement to trade in fixed lots creates a liquidity bottleneck, often leaving investors stranded when prices crash.
Additionally, the tiny equity base of these companies invites manipulation, fuelling ‘pump and dump’ schemes designed to trap retail capital. And lenient reporting standards frequently mask poor financial health, which the investors only come to know about when it’s too late.
With that said, let’s dig into the stocks these Warren Buffetts of India are invested in.
#1 Monolithisch India: A 100% Return Story in 6 Months
Incorporated in 2018, Monolithisch India Ltd is a manufacturer of premixed high-quality ramming mass.
With a market cap of Rs 1,045 cr Monolithisch is in the business of manufacturing and supply
of specialized ramming mass, a heat insulation/lining material used as a refractory consumable for Induction furnaces installed in iron, steel, and foundry plants.
The company also undertakes trading activities occasionally to meet excess and urgent customer demands.
The company was listed in June 2025 when Mukul Agarwal bought a 2.3% stake in the company worth almost Rs 24 cr. This was raised to 3% in the quarter ending September 2025 and now at the end December 2025, it has once again fallen to 2.76% (worth Rs 29.1 cr)
What is the reason behind these changes by Mukul Agrawal? While all we can do is speculate, a closer look at the financials could help getting a better perspective.
The sales of the company have grown at a compounded rate of 81% from Rs 5 cr in FY20 to Rs 97 cr in FY25. And for H1FY26, the sales were at Rs 57 cr.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped from Rs 1 cr in FY20 to Rs 21 cr in FY25, logging in a compound growth of 84%. For H1FY26, EBITDA of Rs 12 cr was logged.
As for the net profits, the company has shown a turnaround as it has jumped from zero profits in FY20 to net profits of Rs 14 cr in FY25, which is a compounded growth of 114%. For H1FY26, profits of Rs 9 cr were recorded already.
The share price of Monolithisch India at listing in June 2025 was around Rs 243, and as on 7th January 2026 the price was at Rs 481, which is a jump of close to 100% in just about 6 months. Just Rs 1 lakh invested in the stock at listing, would have been close Rs 2 lakhs today.
The company’s stock is trading at a PE of 60x, while the current industry median is 48x. The 10-Year median PE for the industry is 27x, but for Monolithisch, we will have to wait and watch as it will be too soon to look at a long-term PE.
The company’s strongest suit is probably its capital efficiency. The current ROCE (Return on Capital Employed) is an enviable 61%, which means it is making Rs 61 in profits on every Rs 100 of capital used. That beats the industry median ROCE which is just 17%.
#2 Adcounty Media: Kacholia’s Bet on Digital Solutions
Incorporated in 2017, Adcounty Media India Ltd provides adtech and digital media solutions.
With a market cap of Rs 256 cr, the company is a BrandTech enterprise that provides end-to-end solutions covering branding and performance optimization. It uses modern technologies to serve
clients across various industries, offering customized advertising strategies developed from a consumer-focused perspective.
One of India’s Warren Buffett, Ashish Kacholia just bought a 2.9% stake in the company worth around Rs 7.5 cr as per the exchange filings made by the company for the quarter ending January 2026.
Let us take a look at the financials to try and find out what caught Kacholia’s eye.
The sales of the company grew at a compounded growth rate of 30% from Rs 19 cr in FY20 to Rs 69 cr in FY25. For H1FY26, sales of Rs 34 cr have been recorded.
When it comes to EBITDA, the company logged a 78% compound growth form Rs 1 cr in FY20 to Rs 18 cr in FY25. And for H1FY26, the company has logged an EBITDA of close to Rs 10 cr.
Looking at the net profits as well, the company has recorded a compound growth of 70% from Rs 1 cr in FY20 to Rs 14 cr in FY25. For H1FY26, the company has already recorded profits of Rs 8.5 cr.
The share price of Adcounty Media India Ltd was around Rs 135 when listed in July 2025 and as on 7thh January 2026 it was Rs 114, which is a big drop from its all-time high price of Rs 282 it hit in September 2025.
The stock is trading at a PE of a 16x which is lower than the current industry median of 24x.
Adcounty Media India Ltd also shines when it comes to capital efficiency. Its current ROCE is 63% while the industry median is just 22%.
The company is also almost debt free, saving them from the hassles of hefty interest payments.
Is ROCE The Driving the Strategy?
With the latest changes Mukul Agrawal and Ashish Kacholia have made, the investor circles are abuzz with activity. Both Monolithisch and Adcounty Media have recorded strong financials, are highly capital efficient and near zero debt, checking just the right boxes for many smart investors.
While Kacholia has bought a stake in Adcounty while it is inching towards its all-time low, Agrawal has decided to sell a piece of the pie when the stock is soaring. It will be fascinating to watch how these two stocks do in the coming weeks and months. Add them to a watchlist and follow them closely to ensure you don’t miss out on any action.
How these two stocks will do in the months and years to come will now be something to look at. For now, it would be a safe bet to add them to a watchlist and watch them closely, as we wait for the strategy behind Kacholia and Agarwal’s picks to be revealed.
Disclaimer:
Note: We have relied on data from www.Screener.in and 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. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.Ace investors Ashish Kacholia and Mukul Agrawal, known for spotting small-cap multibaggers, have recently turned their attention toward two specific SME stocks. These companies are characterized by their virtually debt-free balance sheets and exceptionally high efficiency, boasting a Return on Capital Employed (ROCE) exceeding 60%.
The two stocks in the spotlight as of January 2026 are:
1. Monolithisch India Ltd.
This company is a specialized manufacturer and supplier of ramming mass, a refractory material essential for induction furnaces in the iron and steel industries.
The Investment: Mukul Agrawal recently adjusted his stake in this company, holding approximately 2.76% as of late December 2025.
Financial Performance: Monolithisch has shown explosive growth with a sales CAGR of 81% and a net profit CAGR of 114% (FY20–FY25).
Key Metric: It maintains a current ROCE of 61%, significantly higher than its industry peers.
Market Context: Since listing in June 2025 at approximately ₹243, the stock has surged nearly 100% in just six months, trading near ₹481 in early January 2026.
2. Adcounty Media India Ltd.
Adcounty Media is an adtech and digital media solutions provider that focuses on performance marketing and digital strategy.
The Investment: Ashish Kacholia, the "Big Whale," has taken a fresh 2.9% stake in the company.
Financial Performance: The company recorded a 30% CAGR in sales and a 70% CAGR in profits up to FY25.
Key Metric: It boasts an even higher ROCE of 63% and operates with near-zero debt.
Market Context: Unlike Monolithisch, Adcounty Media has faced some price correction, trading at a P/E of 16x (lower than the industry median), which likely attracted Kacholia as a value buy at lower levels.
Investor Summary Table
| Stock Name | Industry | ROCE | Investor | Key Highlight |
| Monolithisch India | Iron & Steel (Refractory) | 61% | Mukul Agrawal | 100% price growth in 6 months |
| Adcounty Media | Adtech / Digital Media | 63% | Ashish Kacholia | Virtually debt-free; 70% profit CAGR |
Warning: Both stocks are listed on the SME exchange, which carries unique risks. SME stocks trade in fixed lots (limiting liquidity) and have smaller equity bases, making them more susceptible to price volatility and potential manipulation.
Would you like me to analyze the latest quarterly revenue growth for either of these companies to see if the momentum is sustaining?
This video provides further context on the investment philosophy used by these ace investors when selecting microcap and SME stocks for their portfolios.
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