Daljeet Kohli follows the salutary practice of being sensitive to the price of the stock. If the stock price surges in a short time, Daljeet gets jittery and puts the stock on hold. At the same time, if the stock price plunges, Daljeet rushes out a buy recommendation. This way, Daljeet has been able to pocket hefty gains without much risk to his capital.
Lets a take a look at a few recent stocks that Daljeet has grounded and put on ‘hold’:
Capital First Limited (CFL)
CFL achieves our price target of Rs 468; changed rating to ‘HOLD’ from BUY with the same price target of Rs 468
We recommended Buy rating first time on CFL as on July 16, 2014 at market price of Rs 223 with initial price target of Rs 257 and upgraded target many times. Our latest price target of Rs 468 with ‘BUY’ rating was assigned post Q1FY16 result announcement. This has been achieved on April 20, 2016 yielding an absolute return of ~110% since our recommendation date.
GIC Housing Finance achieves target price… downgrade rating to hold from buy with target price of Rs 265…
We had recommended BUY on GIC Housing Finance (GICHSG) in our initiating coverage report on 18th March 2016 at Rs 211 with target price of Rs 265. On 13th April 2016, the stock has achieved target price yielding returns of 30%. … Hence we downgrade our rating to hold from BUY and will wait for Q4FY16 results to revise our target price. However we continue to maintain positive view on stock.
Axis Bank achieves our price target of Rs 466; changed rating to ‘HOLD’ from BUY with the same price target of Rs 466
The stock price of Axis Bank has achieved our price target of Rs 466 as on April 21, 2016 yielding an absolute return of 20% since our last recommendation. Our latest price target was assigned post Q3FY16 result announcement. (We initiated coverage with Buy rating on Axis Bank as on March 28, 2014 at market price of Rs 286 (adjusted) with initial price target of Rs 328 and revised it further multiple times)
Atul Auto: Target achieved, change rating from BUY to HOLD with target price of Rs. 552
On 11th September 2015, we recommended BUY on Atul Auto at price of Rs 395 with a target price of Rs 471 which was later upgraded to Rs 552 on 11th February 2016. The target price was hit on Wednesday (20th April 2016) yielding an overall return of 40%. … We change our rating from BUY to HOLD with target price of Rs. 552 (18x FY18E EPS).
Daljeet has recommended a buy of LIC Housing Finance with a target price of Rs. 575. His logic is as follows:
LIC Housing Finance
Strong show on all fronts… maintain buy with upwards revised target price of Rs 575 and maintain BUY…
LIC Housing Finance (LICHSG) has maintained its growth momentum in loan book at 16% yoy mainly led by higher growth in Loan Against Property segment (LAP) which grew by 122% yoy (partly due to low base) while Individual loan book (excl LAP) grew modest 10% yoy. Overall individual loan book (home loan and LAP) grew by 15% yoy and developer loan by 26% yoy. NIMs were ahead of expectation at 2.7% led by higher growth in high yielding project loan and LAP book along with easing cost of funds. Asset quality remains strong at 0.45% Gross and 0.22% Net NPAs. We revise upwards our earnings estimates by 1‐2% for FY17E and FY18E on back of beat on all fronts. Valuation at 1.9x FY18E ABV remains attractive. We roll over multiple to FY18E and upgrade target price to Rs 575 and maintain BUY.
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