Mastek is a good example of Daljeet’s foresight and dogged perseverance. In July 2014, when Mastek was languishing at Rs. 190, Daljeet recommended a buy on the basis that there is a possibility of value unlocking by way of divestment/ listing of U. S. Insurance business separately.
This prediction came true in September 2014 when Mastek announced the demerger of the insurance products and services business to Majesco Ltd. Though the price surged to Rs. 272, Daljeet maintained a buy with the promise of a target price of Rs. 550.
Today, there was more good news in store for the shareholders of Mastek. The management announced that Majesco Inc (100% subsidiary of Mastek Ltd) has acquired US based Agile Technologies (Agile), an insurance-industry-focused IT consulting firm with revenues of over $9 mn. Agile services has over 20 customers with a high quality talent pool of over 50 insurance technology professionals.
This news sent Mastek spiralling up 20% to touch Rs. 325, giving a gain of 68% since Daljeet’s recommendation in July 2014.
Daljeet has now issued an update report stating that the corporate action is likely to enhance the overall valuation of the company. He has advised a buy with the target price of Rs.550 per share.
Another recommended stock of Daljeet Kohli which has come good is OnMobile Global. I wrote about it a couple of days ago. The stock is looking quite strong at present and has nearly doubled over the past one month.
However, Sharon Bio-Medicine spoilt the party by plunging 20% today. The stock appears to have completely lost its mojo. After surging like a rocket a few months ago, the stock appears to have lost the confidence of some heavy duty investor(s). Daljeet issued an update report a few days ago stating that the steep fall in Sharon’s price has made the stock more attractive. He has advised a buy with a target price of Rs. 140. We will have to see what caused today’s crash and wait for a further update from Daljeet on the future course of action.