Basant Maheswari picks stocks that hard-core value investors are repulsed by. When he recommended Page Industries in June 2011 at the then price of Rs. 2000, value investors recoiled in horror. “How can you buy a stock at a P/E of 40”, they demanded to know, their eyes reflecting their disgust at Basant’s ‘recklessness’.
However, Basant knows his stocks and was not deterred by the criticism. He patiently pointed out that Page dominates the marketplace with its virtual monopoly in the premium innerwear market and that there are several years of hefty gains left in the stock.
In fact, just a few days ago, Basant reiterated his preference for Page Industries and even put in his Model Portfolio.
Today, Page Industries reported blockbuster Q2FY15 results with the net profit surging 21% to Rs 50 crore versus Rs 41 crore YOY and the sales surging 35% to Rs 389.6 crore versus Rs 287.6 crore YOY.
As the stock surged 10% to cross the Rs. 10,000 mark (it retreated to Rs. 9,756 at close), Basant Maheshwari had a big Cheshire “I-told-you-so” smile on his face. He has good reasons to be pleased because the stock has given an incredible 367% return since his recommendation in July 2011.
Now, if you don’t have Page Industries in your portfolio, you don’t have to despair because it is still not too late to dive into the stock. According to the ET, the innerwear market in India is estimated at a mammoth Rs 25,000 crore and is expected to grow at 12% to 14% over the next decade. Page’s dominance in the marketplace will continue and one can be confident of a 20% topline and bottomline growth from the stock for the foreseeable future.
More importantly, Basant has promised a lot more gains from his other two stock picks, Repco Home Finance and Hawkins Cookers. So, you need to quickly listen to Basant’s brilliant analysis of these stocks and take an informed decision.