Multibagger stock recommendations on a platter
First of all, we have to compliment the mandarins at Outlook Business for knowing what novice investors want and providing the information on a platter.
Outlook Business has been following the salutary tradition of persuading eminent stock wizards to share their best stock picks with novice investors with a view to ameliorating the poor financial condition of the latter.
Performance of stocks recommended in 2016
Lets do a quick review of how the stocks recommended by the eminent wizards for 2016 have fared:
|Stocks recommended for 2016|
|Expert||Stock||YoY Gains (%)|
|Gaurav Parikh||Astec Life sciences||147|
|Jigar Shah||Dalmia Bharat||85|
|Niraj Dalal||Delta Corp||48|
|Harendra Kumar||Tata Comm||43|
|Daljeet Kohli||Force Motors||39|
|Ajay Relan||Ashapura Intimates Fashion||35|
|Ambareesh Baliga||Jain Irrigation||23|
|Shilpa Krishnan||Va Tech Vabag||(29)|
|Rajesh Kothari||Jubilant Foodworks||(42)|
As one can see, Gaurav Parikh has simply blown the competition out of the water with his stock recommendation, Astec Lifesciences, having delivered a mind-boggling gain of 147% on a YoY basis.
It is no coincidence that Astec Lifesciences is also the favourite stock of Vijay Kedia. I pointed out earlier that Adi Godrej, the visionary boss-man of the Godrej group, has assured that there may be “value unlocking” in Astec Lifesciences due to the imminent demand by Temasek to list Godrej Agrovet.
Jigar Shah has come second with Dalmia Bharat, his stock rrecommendation, having delivered a staggering gain of 85%.
The stock picks of Niraj Dalal and Harendra Kumar have also impressed by delivering gains in excess of 40%.
In fact, one can see the quality of the stock recommendations from the fact that nine out of the thirteen stock picks have given a positive return.
On an average, the portfolio of thirteen stocks has given a gain of 24.53%, which is highly respectable by any standards.
Stock recommendations for 2017
Now, we have to turn to the pleasurable activity of rummaging through the stock recommendations for the year 2017.
|Stocks recommended for 2017|
|Expert||Stock||CMP (Rs)||YoY (%)|
|Vijay Kedia||Karnataka Bank||116||20|
|Ambareesh Baliga||Praj Industries||84||(14)|
|Saurabh Mukherjea||Asian Paints||928||5|
|Manish Bhandari||Deepak Fertilizers||224||38|
|Niraj Dalal||Sun Pharma||641||(19)|
|Jigar Shah||Tata Motors||498||36|
|Ajay Relan||RBL Bank||356||–|
|Gaurav Parekh||Ruby Mills||344||(15)|
|Gautam Trivedi||Indo Count||161||(26)|
|Nischal Maheswari||Reliance Industries||1073||4|
|Daljeet Kohli||Shilpa Medicare||695||42|
|Ekansh Mittal||Chaman Lal Sethia||99||44|
|Kamlesh Kotak||Finolex Cables||422||65|
It is notable that there is a healthy mix of large-cap stocks and mid-cap/ small-cap stocks in the model portfolio of stocks recommended. There are six large-cap stocks and eleven mid-cap/ small-cap stocks vying for our attention.
The large-cap stocks are blue-chip behemoths that do not require much analysis. These are the typical buy-n-hold stocks which can be expected to churn out healthy compounded returns year after year.
Let’s focus on the mid-cap and small-cap stocks.
Vijay Kedia’s stock recommendation, Karnataka Bank
Few stock wizards have conferred as much wealth upon us as has Vijay Kedia. His stock recommendations like Astec Life Sciences, Heritage Foods, Sudarshan Chemicals, Repro, Atul Auto etc have effortlessly turned into magnificent multibaggers and filled our pockets with solid gold.
Vijay Kedia has given a detailed explanation on why Karnataka Bank is not only safe as a house but has the potential to become a multibagger. The essence of his recommendation is that the Bank has ambitious expansion plans, it is churning out NIMs in excess of 3% and is quoting at a rock-bottom valuation of 0.70x PBV. This makes it a classic fail-safe multibagger stock, he says.
Daljeet Kohli’s stock recommendation, Shilpa Medicare
Shilpa Medicare is a glowing testimonial to Daljeet Kohli’s superior stock picking skills.
He first recommended Shilpa Medicare as a “strong buy” in April 2014 when the stock was languishing at Rs. 198. At the CMP of Rs. 695, hefty gains of 250% are on the table.
Shilpa Medicare has also been conferred the title of potential “100-bagger” in Motilal Oswal’s prestigious Wealth Creation Study.
What is also important is that Shilpa Medicare has been given a clean chit by the experts at the valuepickr forum. This was confirmed by Hitesh Patel, one of the moderators of the forum.
“For me Shilpa has remained as a high conviction portfolio bet because of the developments happening in the co and the approvals it has been getting“, he said, making it clear that Daljeet’s recommendation cannot be taken lightly.
A similar sentiment like that of Hitesh Patel has been expressed by Donald Francis and Ayush Mittal, the co-founders of the valuepickr forum, about Shilpa Medicare.
Ekansh Mittal’s stock recommendation, Chaman Lal Sethia
Ekansh Mittal of Katalyst Wealth has made his debut into the field of public recommendations. He runs a successful stock advisory service which charges a stiff fee for making stock recommendations and so it is commendable that he is offering his picks for free to us.
It may be recalled that Shyam Sekhar, the noted value investor, has indicated that he is bullish about stocks that are in the agricultural “output” segment, i.e., companies that buy agricultural produce from farmers at throwaway prices and convert into value-added branded products which can be sold at hefty profit margins.
Chaman Lal Sethia is a textbook example of such a stock. It buys rice from farmers and converts it into ‘basmati‘ which is sold at exorbitant valuations to food connoisseurs in India and foreign markets in the brand name “Maharani”.
Ekansh has done meticulous number crunching and fact assimilation in support of his theory as to why the small-cap has multibagger potential.
The other mid-cap and small-cap stocks recommended by stalwarts like Ambareesh Baliga, Manish Bhandari, Ajay Relan, Gaurav Parekh, Gautam Trivedi, Kamlesh Kotak, Ajay Jaiswal and Vinod Sharma are also fail-safe and have the potential to shower hefty gains on us. We need to carefully study the rationale and tuck into our own favourites without any further delay!