Dolly Khanna aka Rajiv Khanna stunned us when she announced that her latest stock pick is a little-known micro-cap called ‘Asian Granito’.
What is noteworthy is that the tile/ ceramic/ sanitary ware sector is already well represented in Dolly’s portfolio in the form of Cera Sanitaryware. In fact, Cera is Dolly’s largest holding at present.
Dolly’s action of adding Asian Granito shows how bullish she is about the prospects of the sector.
Ashish Kacholia’s portfolio is studded with several multi-bagger stocks. However, he does not have any stocks representing the tile/ ceramic/ sanitaryware sector.
To make up for this glaring deficiency, Ashish Kacholia has gone ahead and bought a truckload of 2,86,314 shares of Pokarna Limited, a Telengana based company, engaged in the ceramics and granite sector. Kacholia’s holding now represents 4.62% of Pokarna’s paid up capital.
| Pokarna’s Quarterly Results | |||
|---|---|---|---|
| (Rs cr) | Sep 2014 | Sep 2013 | YOY |
| Operating Income | 50.34 | 41.58 | 21.07 |
| Total Expenses | 40.52 | 35.33 | 14.69 |
| Operating Profit | 9.82 | 6.25 | 57.12 |
| Other Income | 1.23 | 0.11 | 1,018.18 |
| PBDIT | 11.05 | 6.36 | 73.74 |
| PBT | 4.67 | 1.34 | 248.51 |
| Adjusted Net Profit | 2.95 | 0.93 | 217.20 |
Pokarna appears to be on a strong growth trajectory if you go by the statement of Mr. Rahul Jain, its ED. In fact, the stock is already is a 5-bagger (526% gain) on a YOY basis.
In an interview to CNBC TV18, Rahul Jain revealed that Pokarna is one of the largest granite exporters in India and that it is a completely integrated company with 15 mines of its own. He also pointed out that nearly 70% of the granite business comes from exports. This percentage is as high as 90% for the quartz business.
Rahul Jain also pointed out that there is huge scope for the quartz business as it is growing at a CAGR of 16.5%. It also enjoys high margins. He emphasized that Pokarna is one of the few companies in the World to have technical know-how from Breton of Italy on how to make “engineered quartz stone”. It is a specialized product with 93% quartz and 7% resin, he added. He also stated that the best quartz in the World comes from Andhra and Telangana and that Pokarna is well placed to meet the demand for the product.
There are several other details that Rahul Jain has provided about Pokarna’s business prospects. From a reading of that it does look like Ashish Kacholia has got himself yet another winning stock.
Not sure where Pokarna have any mines located in Telangana.
Telangana is an unstable state with a Mad CM, if things wont favor there could be a chance for govt to revoke the mine leases!
I guess it is a risky portfolio.
My2Cents
bhs
Not sure if Pokarna have any mines located in Telangana!!!
However, Telangana is an unstable state with a Mad CM, if things wont favor there could be a chance that the govt could revoke the mine leases!
I guess it is a risky portfolio.
My2Cents
bhs
all andhra based CEO’s are liars and stock manipulators
largely true. till 2006-8, the largest number of fraud telephonic interviews I had was with guys from Gulti-land (someone else used to turn up to join). after Raju-satyam, some have woken up to scrutiny. I also find to a GMR Infra a refreshing exception. More recently, the IIT entrance and IAS exam qualifiers have increased by over 300% with Coaching centers attracting people from all over the country. this is at the cost of other states obviously so new generation willing to work very hard for success. However, I am still wary of the older generation into business – you cannot change mindsets – such promoters we need to beware.
Ya,
All Jains are Monks
As per the BSE website and Money controls, It’s not Dolly Khanna who has bought Asian Granito. But it is Dolly Kharma.