When you talk about Vineeta Mahnot and her stock picks, you must use a hushed tone. Why? Because she has more multibagger stocks to her credit than any other stock picker.
Her super-duper multi-bagger stock picks (some of which are 3-bagger plus) like Tata Elxsi, Suven Life Sciences, Vaibhav Global, AIA Engineering, Va Tech Wabag etc tell you that this is a stock picker whose picks deserve to be treated reverentially.
Vineeta was very late in RS Software. Dolly Khanna had already pocketed a large part of the gains. However, it is to Vineeta’s credit that she still gets to take home gains of 62% since her recommendation (just 2 months ago).
Vineeta’s latest stock pick is Sonata Software. She points out that Sonata has reported excellent results for the June 2014 quarter with revenues, operating profit and margins showing a steep increase. The company is also debt-free.
At the end of a succinct analysis, Vineeta recommends a buy on the basis that:
“With improving operating metrics, restructuring process paying off, healthy balance sheet, large deal wins and improving margin profile; Sonata Software Ltd. growth prospects and profitability looks optimistic. We believe the company is trading at an attractive valuation at 11.88x and 8.94x of FY15EPS of Rs.10.70 and FY16EPS of Rs.14.22. We initiate a ‘BUY’ on the stock with a target price of Rs.175 (appreciation of about 37%) with the medium to long term investment horizon.”
Now, you have to ponder over the difficult question as to whether you can really ignore Vineeta Mahnot’s stock recommendation.