Mukul Agarwal stock in focus after Ashish Kacholia to increase stake in the company via preferential issue

Synopsis:
Mukul agarwal invested stock is in the spotlight after its board has approved to raise funds through preferential issue.

A small-cap company engaged in Electrical Machinery for Indian Railways and related products is in focus after its board approved a preferential issue, with a prominent ace investor Ashsish Kacholia participating through the same.

With the market capitalization of Rs. 2,541.19 crore, the shares of Concord Control Systems closed at Rs. 2,511, down by 2.08 percent from its previous day’s close price of Rs. 2,564.40 per equity share. 

As of October 2025, the ace investor Mukul Mahavir Agarwal holds a 3.96 percent stake in the company. The ace investor Ashish Kacholia has 1.21 percent stake in the company.

What’s the News?

Concord Control Systems Limited, a leading manufacturer of embedded electronic and critical electronic systems, has approved a preferential issue of up to 2,38,500 equity shares at Rs. 2,100 per share, aiming to raise about Rs. 50.08 crore, subject to necessary approvals.

The issue has garnered strong support from existing investors, including Ashish Kacholia, the Sanshi Fund group, and new investor Sage One Flagship Growth Fund, reflecting high confidence in the company’s growth prospects.

Management View

Nitin Jain, Joint Managing Director of Concord Control Systems, stated that the preferential equity issue is a key milestone, strengthening the company’s financial position and enabling expansion in operations and market opportunities within the automation sector. He highlighted that participation from existing investors and fresh capital from Sage One reflects confidence in Concord’s vision. The funds will support new technology investments, enhance production capacity, and drive sustained growth and innovation.

About the Company

Concord Control Systems Limited (CNCRD) is a leading Indian manufacturer of embedded electronics and critical systems for next-generation rail infrastructure. An RDSO-approved OEM, the company provides advanced, high-performance electrical and electronic solutions aligned with the government’s Gati Shakti initiative. Leveraging cutting-edge R&D and manufacturing, CNCRD ensures zero-defect, environmentally responsible products that meet global quality standards. Serving India’s railway modernization and digital transformation, it aims to expand globally, offering durable, tech-enabled solutions designed for extreme railway conditions.

A return on equity (ROE) of about 27.4 percent, a return on capital employed (ROCE) of about 36.8 percent and debt to equity ratio at 0.13 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 84.8x which is higher as compared to its industry P/E 34.5x.  

The company reported revenue of Rs. 82 crore in H1 FY26, up by 9.33 percent from Rs. 75 crore in H2 FY25 and 64 percent YoY from Rs. 50 crore in H1 FY25. The company reported a net profit of Rs. 16 crore in H1FY26, increased by 100 percent from Rs. 8 crore in H1FY25 and 14.29 percent from Rs. 14 crore in H2FY25.

Written by Akshay Sanghavi

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