I am a believer in the philosophy that you must always keep a hawk eye on what stock wizards like Radhakishan Damani are upto. These stock wizards are endowed with special powers that enables them to spot changes in trends faster than average folk. So, when I noticed that the great Radhakishan Damani was shopping for Gati & Transport Corp in January 2014, I had rightly sounded the bugle “Why Did Radhakishan Damani Buy Gati & Transport Corp Stock And Does It Signal End of Woes For Infra/ Cap Goods Sector?”.
Well, I was perfectly right in my analysis because today, just 5 months later, Gati is up a fabulous 154% while TCI is up 82%. On a YOY basis, Gati has given a return of 357% while TCI has given a return of 188%. You can also see the magic of Damani’s timing. He bought when nobody wanted infra stocks. Today, they are hot favourites.
If we had just followed the footsteps of Radhakishan Damani and bought Gati & TCI (or any other infra stock) at that time, we would have made a fortune. So, next time, we must remember that when we spot a stock wizard buying stock, we must dive in first and ask questions later.
Anyway, it is never too late because Ashish Chugh of Hidden Gems has now identified another transport stock with a similar mettle as Gati & TCI.
As we have seen in the past, Ashish Chugh has the knack of picking stocks that appear to be languishing but which are on the verge on a turnaround. I have analyzed all of his recent stock picks in my article “Why We Cannot Ignore The Stock Picks Of Ashish Chugh Of Hidden Gems Anymore“. Two more of his stock picks are referred to in this piece. You will find the performance of his stock picks quite impressive.
Now, his latest stock pick is Sical Logistics.
Let’s take a quick look at the core reasoning:
“A part of the Coffee Day Group, Sical Logistics has established strong capabilities in Port, Surface, Offshore & Integrated Logistics domains and is well placed to capitalise on the opportunities from turnaround in the Infrastructure & Logistics space.
Sical Logistics is a direct play on growth in Indian economy. The company has over the past few years created & rationalised extensive Infrastructure facilities to be ready to capitalise on the revival in the Indian economy as and when it happens. We believe that the company has over the past few years created Infrastructure capabilities which will enable it to capitalise on the opportunities in the Coal Handling, Iron Ore Handling & other activities related to Integrated Logistics. The company has in the past few years, utilised the weak economic environment to consolidate, ramp up capacities through increased capex and is well set to exploit opportunities arising out of turnaround in the economy. Increased production of Coal to enhance power production in the country; restart of Iron Ore mining and for that matter mining of other commodities; and implementation of GST would be triggers that will directly benefit the company. The stock may not look cheap or deep value on financial parameters currently, however given the size of opportunity available in the space in which the company operates, pedigree of the new promoters and their capabilities to scale up business, we believe the stock merits investment at the current market price and on declines.”
So, there you have it. Another winning stock. Now, what we have to see is whether Sical will overtake Gati & TCI or not.