Daljeet Kohli has been facing a bit of flak lately from disgruntled investors over the failure of his stock pick, Sharon Bio-Medicine.
While the flak may be justified owing to the poor stock selection, we also have to compliment him when his stock picks deliver bumper gains.
Daljeet recommended a buy of Ashiana Housing on 19th September 2014 on the basis that the Company has an “asset-light business model, debt-free status, high ROEs, reasonable valuations” and is “All set for multifold growth over next 2 years…” On that day, Ashiana was quoting at Rs. 159. Later, as the stock price showed strength, Daljeet also put Ashiana in his “Diwali Dhamaka Stock Picks”.
I called Ashiana a “no-brainer” stock on the basis that if ace investors like Jwalamukhi, Prof. Sanjay Bakshi & Ashish Kacholia have trusted it with large amounts of capital, there is no reason why we could not do the same.
Then, when Brahmal Vasudevan’s Creador Capital and Goldman Sachs pumped in Rs. 100 crore each into Ashiana, I dramatically proclaimed that “alarm bells are clanging that mega gains are in store for us”. I also sent out the clarion call that we need to take “immediate action”.
Well, today, Ashiana surged nearly 18% to touch an all-time peak of Rs. 319. It rested 13% up at Rs. 306.
Daljeet would have a big smile on his lips because he is taking home gains of nearly 100% for just five months of work (Rs. 306-Rs. 159).
The best part is that even if we had just cloned Brahmal Vasudevan’s & Goldman Sachs’ move on 9th February, we would be sitting on gains of nearly 39% (Rs. 306-Rs. 220) for just two weeks of holding.
Now, the million dollar question is whether more gains are in store from Ashiana. Unfortunately, there is no update from Daljeet or Religare yet even though their target prices have been breached. However, if we go by the collective wisdom of the five ace investors who continue to remain invested in Ashiana, the indication is that this is a stock to hold on to.
Of course, each one of us has to come to an independent decision in the matter after carefully studying the risk factors set out in IndiaNivesh’s initiating coverage report, Religare’s initiating coverage report and Ashiana’s own Investors’ presentation. Also, we must be prepared to hold the stock through thick and thin for Vision 2020 (i.e. three to five years) without any murmurs of discontent if the stock price plunges for some reason.
Why only Sharon Bio Medicine Ltd. Even his call went terribly wrong in case of Meghmani Organics also which initially rose to about Rs. 30.00 but later on fell to current Rs. 19.00. No word from Daljeet Kohli or a follow-up report on this as well. Even earlier recommendations like Camson Bio Technology, AVTNatural Products Ltd. also were recommended but current prices are down by more than 30 to 40%. What is intriguing is complete silence on the part of the analyst. Credible analysts like Daljeet Kohli should always come out with some rejoinder to clear the doubts on any stock researched by them. In fact this should be the guiding principle of India Nivesh as a corporate house.
Stop praising DK, his meghmani is also a loser.
I picked Tata Elxsi and it double in 1 1/2 months. Its easy to pick stocks in this bull market and needs no praise.
who r u i am rao is there double jodi here??????
I agree.
Ashiana Housing has a face value of 2/- At Rs 295 it is very expensive. At EPS of just 1.82, book value of Rs 28, one should not touch this scrip.
Thanks for this info Hemant, it certainly is overpriced with such numbers.
Dk stocks ar always dangerous. It may rise and eventually fall as most of them are with operators.
Cant find any reason to buy this stock. Can anyone tell me one good reason?
low eps. High p.e. Horrible sector.
Definitely. When the story broke out a couple of months ago, I checked up the fundamentals of the Company. The fundamentals were not supporting the kind of valuation market was chasing.
It is high time, persons like DK should make a serious effort to reply to these kind of comments by his admirers and followers and come out clean on such stocks like, Meghmani, Ashiana, Sharon and many others.
I never look at Daljeet’s picks after Sharon Bio mishap. I bought Sharon after selling Sintex, Lupin and sun pharma…… I won’t forgive Daljeet my whole life..