On Thursday, 27th August 2026, Catamaran Ventures LLP purchased 55,978 shares of Foseco India at Rs 5,897 apiece. The ticket got here to Rs 33.01 cr and equates to roughly 0.74% of the corporate. The inventory rose the next session to Rs 6,371, valuing Foseco at Rs 4,819 cr.
Taken alone, a sub-1% place is simple to wave away. The context is what makes it price studying. Within the June 2026 quarter alone, Murthy’s household workplace turned up as a fresh name in four listed companies: Sansera Engineering with about 1.7%, TD Power Systems with about 1.46%, Vardhman Special Steels with 9,82,693 shares for round 1.0%, and a smaller place in MM Forgings.
Line these 5 up and the thread is difficult to overlook. Sansera and MM Forgings form metallic into parts. Vardhman melts scrap in an electrical arc furnace and rolls it into alloy metal bars. TD Energy builds the turbines that heavy crops run on. And Foseco sells the consumables that foundries use to show molten metallic into castings. Catamaran has spent two quarters shopping for its manner alongside a single industrial chain, and it has now purchased a provider to the entire of it.
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The Vesuvius Group Dilution: How the Morganite Deal Unlocked a 15% Block
Foseco doesn’t often have shares out there. Till December 2025 its UK dad or mum, the Vesuvius group, owned 74.98% and had completed each quarter since 2017. The float was sleepy and home establishments barely bothered.
What modified was a deal. In late 2025 Foseco India acquired 75% of Morganite Crucible (India), a individually listed maker of the heat-resistant vessels used to soften metallic, now renamed Foseco Crucible (India). Foseco paid partly in its personal shares, which is why the dad or mum’s stake fell to 63.54% and public shareholding jumped from 24.22% to 36.00%. The arithmetic is exact: dilute 74.98% by a recent difficulty equal to fifteen.26% of the enlarged capital and also you land on 63.54% to the second decimal.
These new shares went to Morgan Superior Supplies, the London-listed vendor. On Thursday, Morgan bought each one in every of them. Morganite Crucible Restricted and Morgan Terrassen BV offloaded 11,50,800 shares for Rs 678.6 cr, exiting fully. Morgan by no means purchased that stake available on the market. It was handed the paper as half fee, held it via the lock-in, and cashed it 9 months later to pay down group debt.
That’s the door Catamaran walked via. It was not the most important purchaser on the opposite aspect. SBI Mutual Fund took Rs 190 cr and Motilal Oswal Mutual Fund took Rs 25.11 cr, with the stability going to patrons who didn’t need to be named. However for a household workplace that has been looking this sector, a compelled 15% block is usually the one manner in.
Foseco India Financials: Analyzing the 19% Income CAGR and Standalone Margins
Foseco was arrange in 1958 and runs crops at Sanaswadi close to Pune and at Puducherry. Its filters, coatings and binders go to corporations casting elements for vehicles, tractors, valves, railways and energy gear. One flag earlier than the desk: the corporate closes its books in December, not March, so these are calendar years.
| 12 months ended December | CY20 | CY21 | CY22 | CY23 | CY24 | CY25 | 5-yr CAGR |
| Gross sales (Rs cr) | 251 | 338 | 407 | 477 | 525 | 604 | 19% |
| EBITDA (Rs cr) | 21 | 44 | 63 | 70 | 91 | 107 | 38% |
| Internet Revenue (Rs cr) | 15 | 33 | 46 | 73 | 73 | 75 | 38% |
A 38% revenue CAGR reads nice and is usually an accident of the place the clock begins. CY20 was the pandemic yr: revenue fell 57% to Rs 15 cr and working margin collapsed to eight% in opposition to a traditional 14% or so. Compounding off a gap that deep and the quantity flatters.
Begin from CY19, the final clear pre-pandemic yr, and the six-year image is sober however trustworthy. Gross sales compound at 11%, working revenue at 15% and internet revenue at about 14%. That could be a stable industrial enterprise, not a rocket. The desk is standalone for a motive: on a consolidated foundation the report begins solely in CY24, when the crucible enterprise arrived.
Debt-Free Stability Sheet and the Hidden Worth within the Crucible Subsidiary
Murthy has spoken usually about wanting companies that generate actual money and carry no debt. Foseco matches that description nearly to the letter. Borrowings stood at Rs 1 cr on the finish of CY25 in opposition to reserves of over Rs 1,000 cr. Working money move was Rs 92 cr in opposition to Rs 107 cr of working revenue, and free money move was Rs 85 cr. The money conversion cycle is destructive at 39 days, as a result of suppliers receives a commission slower than prospects pay in.
The June 2026 quarter additionally reveals one thing the market has not totally priced. On a standalone foundation Foseco did Rs 182 cr of gross sales at a 17.6% working margin. Consolidated, it did Rs 231 cr at 22.9%. Strip one from the opposite and the crucible enterprise contributed roughly Rs 49 cr of gross sales and Rs 21 cr of working revenue in a single quarter. The unit Morgan was prepared to let go of is presently the richest-margin asset within the group.
Valuation Test: 46x PE and Upcoming Institutional Fund Increase
The share price of Foseco was round Rs 1,500 in August 2021 and as on 28th August 2026 it was Rs 6,311.
The inventory trades at a PE of about 46x and the trade median presently is 28x. The ten-year median PE of the corporate is 44x whereas the trade median for a similar interval is 28x once more. Over a decade the share worth compounded at 16% a yr whereas revenue compounded at 10%. That six-point hole is the rerating doing the work, not the enterprise.
The dividend yield is 0.41%. The 52-week vary runs from Rs 4,300 to Rs 6,846, and the shares are down roughly 5% over the yr.
Two provide occasions belong on the calendar. Foseco has instructed the exchanges that shareholders can be requested on the 59th annual basic assembly on 23rd September 2026 to approve a fund elevate via a professional institutional placement. It should additionally promote down about 1.77% of its listed crucible subsidiary to fulfill minimal public shareholding guidelines. A inventory that has simply absorbed a 15% block has extra paper heading its manner.
What the Foseco Entry Means for Catamaran Watchers
Three issues stand out for readers who comply with the household workplace somewhat than the inventory.
First, the shopping for is deliberate and it’s sectoral. 5 entries throughout two quarters, each one in every of them in metallic forming, particular metal or the gear and consumables that sit round them. This isn’t opportunistic dabbling. It seems like a thesis being constructed place by place.
Second, Catamaran retains its tickets small. Nothing on this cluster is a management stake, and Foseco at 0.74% sits under the 1% threshold at which a shareholder should be named within the quarterly sample. Except the workplace provides extra, this holding is not going to seem within the September submitting in any respect. Traders ready for the shareholding sample to substantiate it’ll wait a very long time, which is exactly why the majority deal report issues.
Third, the entry level was made by another person. Catamaran didn’t drive this open. A British group wanted the money and a regulator-driven float enlargement did the remaining. The lesson for anybody monitoring star buyers is that conviction and alternative are various things, and the filings not often let you know which one you’re looking at. Right here, for as soon as, they do.
A good suggestion can be to add this stock to a watchlist and maintain an in depth eye on it within the close to future.
Disclaimer:
Notice: We’ve got relied on information from http://www.Screener.in and http://www.trendlyne.com all through this text. Solely in circumstances the place the information was not out there, have we used an alternate, however extensively used and accepted supply of knowledge.
The aim of this text is barely to share fascinating charts, information factors and thought-provoking opinions. It’s NOT a advice. Should you want to think about an funding, you might be strongly suggested to seek the advice of your advisor. This text is strictly for educative functions solely.
Suhel Khan has been a passionate follower of the markets for over a decade. Throughout this era, he was an integral a part of a number one Fairness Analysis organisation primarily based in Mumbai because the Head of Gross sales & Advertising. Presently, he’s spending most of his time dissecting the investments and methods of the Tremendous Traders of India.
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