Best Multibagger Stocks To Buy For 2017: Four Ace Stock Pickers Recommend 17 Top-Quality Stocks

CNBC TV18, which is manned by dynamic youngsters like Varinder Bansal, Sonia Shenoy, Anuj Singhal, Reema Tendulkar etc, follows the salutary tradition of persuading eminent stock pickers to recommend multibagger stocks to us at the beginning of each year.

For 2016, CNBC had a panel of dignitaries comprising of S. P. Tulsian, Porinju Veliyath, Prakash Diwan and Ambareesh Baliga recommend top-quality stocks to us.

For 2017, CNBC has created an expert panel comprising of SP Tulsian, Prakash Diwan, Dipan Mehta and Daljeet Singh Kohli. The responsibility that has been entrusted upon this eminent panel of experts is the same – to home in on potential multibagger stocks and hand them over on a platter to us.

Performance of stocks recommended in 2016

First, we have to take note of how the recommendations made by the expert panel for the year 2016 have turned out.

The performance is as follows:

As one can see, most of the 16 stocks have put up quite a spirited performance.

S. P. Tulsian is leading with impressive gains of 21%. Ambareesh Baliga has come second with gains of 17.25%, followed by Porinju Veliyath who has notched up gains of 14.25%. Prakash Diwan is lagging behind with a loss of 8.75%. He has quite a bit of catching up to do.

Average of all four:

If one had invested equally in all 16 stocks, the gains would be 10.94%, which is quite respectable.

Comparison to Nifty, S&P BSE Small-Cap & S&P BSE Mid-Cap Index

It is notable that the performance of three of the stock pickers has heavily out-performed the Nifty, which gave a measly return of 4.30% on a YoY basis.

The same is the position with regard to the S&P BSE Small-Cap Index which gave a YoY return of 4.50%.

In comparison to the BSE Mid-Cap Index, the performance is commensurate because that Index posted YoY gains of 12.80%.

Under-performance in comparison to DSP BlackRock Micro Cap Fund

DSP BlackRock Micro Cap Fund, which is managed by whiz-kid fund manager Vinit Sambre, has posted an impressive YoY gain of 18.6%.

This out-performs three of the four stock pickers. Only S. P. Tulsian has been able to hold his ground against the DSP Micro-cap fund.

It may be recalled that Vinit Sambre was awarded the prestigious title of “Best Mutual Fund Manager” for notching up hefty gains of 25% CAGR over the past five years.

Stock recommendations for 2017

Observations on the stock recommendations

(i) There are no bank or NBFC stocks recommended by any of the four stalwarts. This is very surprising because financial stocks are supposed to be red-hot favourites given the impending lowering in interest rates;

(ii) There are four commodity/ cyclical stocks in the portfolios, namely, Dwarikesh Sugar, Sandur Manganese, Shipping Corporation and MOIL. This implies that the experts believe that commodity and cyclical stocks are at the bottom of the barrel and are poised to surge;

(iii) There are four Pharma stocks implying that the Pharma sector has come back into reckoning after the torrid time it faced in 2016 from the crackdowns by the USFDA and the Indian Government.

(iv) Dynemic Products has the privilege of being recommended by S. P. Tulsian and Prakash Diwan. This implies that there is something special about the stock which warrants close study.

Conclusion

It is obvious that the four stalwarts have spared no effort in researching the 17 stocks before recommending them to us. Prima facie, the stocks appear to be fail-safe and can be expected to deliver hefty gains in the foreseeable future!