When Daljeet Kohli, in his usual soft-spoken earnestness, recommended a buy of KPR Mills, a lot of investors (including me) turned their nose up. The textile sector was thought to still be in a cyclical downturn and a wealth-destroyer.
Today, with the benefit of hindsight, we have to complement Daljeet for being amongst the first to realize that the cycle was about to turn and that there would be glory days for the textile sector and stocks (see the chart here showing the magnificent gains of textile stocks).
In fact, it is later in time that ace investors like Dolly Khanna, Prof. Sanjay Bakshi, Anil Kumar Goel, Kenneth Andrade etc realized that the textile sector would prove to be a goldmine.
Of course, once realization set in, the ace stock pickers wasted no time in scooping up huge truckloads of top-quality stocks like Ambika Cotton, Nandan Denim, RSWM etc. Today, everyone is basking in the huge gains that have effortlessly flowed in.
Daljeet has also deservedly taken home gains of 85% from KPR Mills in the short period from 5th December 2014 to date.
Now, let’s take a quick look at some of Daljeet’s latest stock picks:
(i) Bajaj Finance: Daljeet first recommended this powerhouse blue chip stock on 24.04.2012 when it was available at a throwaway price of Rs. 847. At today’s CMP of about Rs. 5,327, Daljeet has a six-bagger (CAGR return of 85% and overall gain of 536%) on his hands.
Bajaj Finance is the ideal ‘buy n’ forget’ sort of stock. Daljeet has continued to recommend a buy and promised a target price of 6,300 for the stock, which is an upside of about 18% from the CMP of Rs. 5,327.
(ii) Ashiana Housing: This stock, which is backed by ace investors like Prof. Sanjay Bakshi, Ashish Kacholia, Brahmal Vasudevan, Jwalamukhi etc, has taken it on the chin owing to the meltdown in the realty sector. However, Daljeet has foreseen that Ashiana will report blockbuster returns in FY16 and FY17 which will (hopefully) send the stock price surging up. His target price for Ashiana Housing is Rs. 290, which is an upside of 36% from the CMP of Rs. 212.
(iii) Dewan Housing: This stock, which is Rakesh Jhunjhunwala’s favourite, is also a casualty of the slowdown in the realty sector. Daljeet says that the stock is cheap and the time is opportune to grab it. He has foreseen a target price of Rs. 630 for Dewan Housing, which is an upside of 32% from the CMP of Rs. 475.