First, if you want to acquaint yourself with the track record of Hem Securities and its ace stock-picker, Vineeta Mahnot, you must read my post Hem Securities Does It Again With Winning Stock Pick Va-Tech Wabag. Is AIA Engg Next? I have analyzed their latest stock picks. You will find the performance of their stock picks quite amazing.
Now, lets’ pay attention to Vineeta Mahnot’s latest stock pick IFGL Refractories:
“IFGL Refractories Ltd is a leading manufacturer of specialized Refractories having manufacturing facilities in China, Germany, India, UK and USA. Krosaki Harima Corporation (a subsidiary of Nippon Steel Corporation, Japan) is the technology provider. Also engaged in manufacture of foundry ceramics and bio ceramics.
With strong capacity expansion plans; increasing global presence; strong customer base; improved financial performance and effective cost rationalization measures; IFGL Refractories Ltd. growth prospects and profitability looks positive. We believe the company is trading at an attractive valuation at 5.10x and 4.19x of FY15EPS of Rs.22.38 and FY16EPS of Rs.27.24. We initiate a ‘BUY’ on the stock with a target price of Rs.145 (appreciation of about 27%) with the medium to long term investment horizon.”
Interestingly, IFGL was first identified as a stock opportunity in June 2012 by Ashish Chugh of HiddenGems fame. In recommending IFGL Refractories, Ashish Chugh coined a classical phrase which deserves to be etched in letters of gold:
“Anytime is the right time to buy fundamentally strong stocks. If the fundamentals of the company are good enough, it will give you good returns in the long-term”
At that time, IFGL Refractories was languishing at Rs. 40. At today’s CMP of Rs. 120, Ashish Chugh is looking at a 141% gain in just 2 years.
Incidentally, on that day, Ashish Chugh had also recommended Atul Auto as an investment candidate. The stock was at Rs. 102 then. At today’s CMP of Rs. 383, we are looking at a gain of 273%.
If you want to check Ashish Chugh’s latest stock picks, you will find it in Why We Cannot Ignore The Stock Picks Of Ashish Chugh Of Hidden Gems Anymore.