Daljeet Kohli of IndiaNivesh deserves to be complimented for his brilliant stock pick JB Chemicals. When the stock was quoting at Rs. 94 in October 2013, Daljeet sent out a strong buy call on the rationale that the new drugs policy (DPCO 2013) would turn the fortunes of the Company. He set out a target of Rs. 149 for the stock.
Today, when JB Chemicals surged to touch Rs. 157, investors who had acted on Daljeet’s advice had a big smile on their face.
Personally, I did the sensible thing by grabbing a chunk of the stock as soon as I heard Daljeet’s soft but confident voice urging a buy. Later, when JB Chemicals reported optically dismal Q2FY14 results and the stock tanked, I heeded the advice of MMB punters and loaded up on the stock.
Now, Bhagwan Singh Chaudhary, Daljeet’s second-in-command, has issued an advisory (pdf) cautioning that the turmoil in Russia and Ukraine may lead to a disappointment in JB Chemical’s results.
If so, that will be another opportunity for medium & long-term investors to load up on the stock. We must remember that these political turmoils are temporary and that the best time to buy is when there is when there is a crises.
Another stock that you need to take a close look at is Shilpa Medicare. After Daljeet Kohli recommended a “strong buy” at Rs. 348, Tano Capital announced that it was investing $12.5M (INR 75cr) in Shilpa Medicare and sent the stock spiraling to Rs. 439.
Interestingly, Tano Capital is an existing investor in Shilpa with a 4.96% stake worth Rs. 80 crore. Barings India has a 8.16% stake worth Rs. 131 crore. Tano will now become the largest shareholder in Shilpa.
The confidence of such big-ticket investors in Shilpa Medicare tells you that the future is rosy.
Also, according to Daljeet’s detailed analysis of the pharma sector, Shilpa is expected to show revenue growth of 67% YOY.
Daljeet’s target price of Shilpa is Rs. 544, a gain of about 24% from here. We shouldn’t be surprised if Shilpa reaches that target effortlessly. I am presently nibbling on the stock and plan to step up my quota if there is a dip in price.