Bhavin Shah’s Stock Picks Give 77% Return

On 29.12.2011, Bhavin Shah of Equirus Securities appeared on CNBC-TV18 and confidently identified 4 stocks as being worthy of purchase by investors. He promised that these stocks would give block-buster returns.

Well, today, almost a year later, his predictions have come true and his stock picks have given investors a 77% return.

Lets look at Bhavin Shah’s stock picks and see if there is any steam left in them.

Supreme Industries:

Bhavin Shah was gung-ho about Supreme Industries because he felt it could deliver about 15% plus growth over a sustainable future. He pointed out that Supreme Industries has a business model that is not severely affected by the economic swings. It has a diversified plastic processor, which is India’s largest and it depends on in-house effort to deliver a wide range of products as compared to the other players which are more specific to one product line and often depend on foreign collaborations.

Bhavin Shah also explained that Supreme Industries will benefit from some local manufacturing of raw materials being set up by some of the Japanese suppliers. Its’ clean dividend paying history also impressed him.

Amara Raja Batteries:

Amara Raja was a logicial stock pick given that it had delivered more stable results than it’s larger competitor Exide. Bhavin Shah explained that the low valuations of the stock made it very attractive especially because of the boom expected in the auto industry.

Nesco:

Bhavin Shah’s third stock pick was Nesco which owns the Bombay Exhibition Centre and other high quality office space in the same premises. He pointed out that the two properties are the sources of revenues and both are very stable and steady. Bombay Exhibition Centre has very high visibility, most of the high quality exhibitions in India happen there.

FAG Bearings:

Bhavin Shah’s fourth stock pick was FAG Bearings which has delivered a constant 30% kind of returns on capital over the past several years. He expressed confidence that FAG Bearings would continue its strong showing in the foreseeable future as well.

Well, Bhavin Shah’s stock analysis is quite convincing. All four stocks are of well managed companies with great potential. One can expect these stocks to continue their great showing in the future as well.