One quality about Shankar Sharma that requires to be appreciated is that he is very careful about the stocks that he recommends to novice investors.
Several years ago, Shankar had recommended Tata Motors and Bajaj Auto as his favourite stocks. Both stocks are powerhouse blue chips and safe as houses. Investors who acted on his advice have benefitted immensely.
This time, instead of relying on trusted war horses, Shankar chose two micro-caps, Kiri Industries and A2Z Industries.
Because both stocks are untested, novice investors were a little wary. However, we need not have worried because Shankar had done his homework well and got his timing perfect.
Shankar’s logic for recommending Kiri Industries is that it is engaged in the manufacture of specialty chemicals and will benefit from the slowdown in China.
This proposition played out in full force today because Kiri spurted a magnificent 20% to rest at Rs. 357.
Prima facie, the reason for the exuberance in the Kiri Industries counter (and the counters of the other specialty chemical stocks) appears to be the decision of the Government to levy anti-dumping duty on Chinese exports of specified chemicals.
It is worth noting that in the ten days that have elapsed since Shankar’s recommendation on 3rd June 2016, Kiri Industries is up a mind-boggling 59%.
A2Z Infra, Shankar’s second stock pick, has also lived upto the high expectations reposed in it.
A2Z announced on 13th June 2016 that it has secured a major contract from the Nepal Electricity Authority.
A2Z Infra Engineering zooms 12% on winning Rs 90 cr overseas order https://t.co/oGX02PYiyF
— FirstBiz (@FirstpostBiz) June 13, 2016
Understandably, the stock has been surging with no inhibitions. Since Shankar’s recommendation on 3rd June, A2Z Infra is up 32%.
So, we have to compliment Shankar for getting both of his stock picks right and filing our coffers with riches. We hope that there will be many more such stellar stock picks in the future as well!