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.