Eradication of Bears from Dalal Street
“Weapons free, Boys”.
Rakesh Jhunjhunwala, the Commander-in-chief of the Bulls Army of Dalal Street (“BADS”), issued the ultimate command, clearly signaling a zero-tolerance approach towards the Bears.
On the previous occasion, our Herculean efforts at driving the Bears out of Dalal Street had met with limited success.
This time, a crack team of commandos comprising of the patriots of the RJ Fan Club, MMB punters and local Dalal Street punters was created to deal firmly with the menace of the Bears.
First, we blocked all the entry points into Dalal Street by paving the streets with highly explosive M18 Claymore anti-personnel landmines.
Then, sharp-shooters with high-precision SV-98 sniper rifles were positioned on the rooftops of the adjoining buildings.
Last, but not the least, the trio of Mukeshbhai, Jigneshbhai and me were stationed at Jeejeebhoy Towers with an arsenal of weapons which included SMAWs (Shoulder Mounted Assault Weapons), MGLs (Multiple Grenades Launcher) and other fearsome armourary.
Needless to say, our efforts have borne fruit.
The Nifty surged like a rocket and effortlessly crossed the ATH of 11,000, bringing cheer and smiles to the faces of beleaguered investors who have been tormented since ages.
The bulls are firmly in charge with the #Nifty reclaiming 11,000 for the first time since February 1 with the #Sensex hitting a record high as well. @blitzkreigm explains in detail pic.twitter.com/IkJaRiKMdc
— CNBC-TV18 News (@CNBCTV18News) July 12, 2018
In fact, two powerhouse stocks joined the prestigious 100-Billion dollar club with two more waiting in the wings to barge in.
THE HUNDRED BILLION DOLLAR CLUB – India
TCS $110Bn
RELIANCE $100BnDISTANCE FROM 100 BILLION DOLLARS
HDFC BANK 17%
HUL 45%@CNBCTV18Live https://t.co/qhcYIIbhos— Mangalam Maloo (@blitzkreigm) July 12, 2018
Shankar Sharma & Sunil Singhania had predicted the super surge
At this stage, we have to compliment Shankar Sharma & Sunil Singhania, the two stalwarts, for having correctly advised us to aggressively tuck into stocks when the chips were down.
“We’re done. It does not get any worse than this, I am very-very optimistic on smallcaps irrespective of macro,” Shankar had predicted with his customary confidence, inspiring legion of investors to come out of their bunkers.
This was endorsed by Sunil Singhania, the illustrious former fund manager of Reliance Mutual Fund.
“Build positions over next two months for super returns,” he said in words so simple that even the dumbest of novices would understand.
Had mentioned on May 19, 2018 to get wallets ready for big opportunity coming in 2-4 months. Exactly in two months we have this “stocks on sale” opp. Build positions over next two months for super returns. BE POSITIVE! https://t.co/nYFRJdxDbH
— Sunil Singhania (@SunilBSinghania) June 28, 2018
Of course, how long this happy state of affairs will continue and the Bears continue to stay away from Dalal Street is another story altogether.
Dolly Khanna shuffles her portfolio of multibagger stocks
Peeping into Dolly Khanna’s portfolio of magnificent multibagger stocks is always a cure for the blues.
In the Quarter from April to June 2018, Dolly has indulged in her customary tinkering with the portfolio.
| Stock Name | CMP (Rs) | Nos of shares |
Value of portfolio |
% of Portfolio |
| Asian Granito | 310.45 | 3,72,229 | 11,55,58,493 | 1.75% |
| Associated Alcohol | 290.15 | 1,87,279 | 5,43,39,002 | 0.82% |
| Butterfly Gandhimati | 320.4 | 1,78,895 | 5,73,17,958 | 0.87% |
| Dwarikesh Sugar | 17.8 | 21,81,896 | 3,88,37,749 | 0.59% |
| GNFC | 451.2 | 15,80,202 | 71,29,87,142 | 10.79% |
| IFB Agro Industries | 570.05 | 1,20,882 | 6,89,08,784 | 1.04% |
| LT Foods | 60.25 | 34,74,601 | 20,93,44,710 | 3.17% |
| Manappuram Finance | 103 | 98,74,485 | 101,70,71,955 | 15.39% |
| Muthoot Capital | 1052 | 1,75,567 | 18,46,96,484 | 2.79% |
| Nilkamal Ltd | 1637.05 | 2,28,900 | 37,47,20,745 | 5.67% |
| Nitin Spinners | 84.45 | 5,87,408 | 4,96,06,606 | 0.75% |
| NOCIL | 185.35 | 32,10,573 | 59,50,79,706 | 9.01% |
| PPAP Automotive | 572 | 1,42,798 | 8,16,80,456 | 1.24% |
| Prakash Industries | 155.15 | 4,00,000 | 6,20,60,000 | 0.94% |
| Radico Khaitan | 369.9 | 14,05,336 | 51,98,33,786 | 7.87% |
| Rain Industries | 188.45 | 86,52,410 | 163,05,46,665 | 24.67% |
| RSWM | 261 | 4,20,911 | 10,98,57,771 | 1.66% |
| Ruchira Papers | 112.9 | 3,73,128 | 4,21,26,151 | 0.64% |
| Selan Exploration | 200.7 | 2,43,400 | 4,88,50,380 | 0.74% |
| Som Distilleries | 250.95 | 2,79,954 | 7,02,54,456 | 1.06% |
| Srikalahasthi Pipes | 249.5 | 6,28,846 | 15,68,97,077 | 2.37% |
| Tata Metaliks | 695.15 | 3,09,380 | 21,50,65,507 | 3.25% |
| Thirumalai Chemicals | 1553 | 1,24,046 | 19,26,43,438 | 2.92% |
| TOTAL NET WORTH | 660,82,85,021 | 100.00% | ||
She has trimmed her holdings in Butterfly Gandhimathi, Srikalahasthi Pipes, Thirumalai etc.
Sadly, Sterling Tools appears to have been put on the guillotine.
Dolly had first stormed into Sterling Tools in the April to June 2016 quarter in the distinguished company of veteran investors Anil Kumar Goel and Vallabh Bhanshali.
The stock has richly rewarded the three stalwarts with handsome gains of 280% since April 2016.
Thankfully, PPAP Automotive, Sterling’s compatriot, has still retained Dolly’s confidence.
Dolly bought PPAP Automotive at the same time as she bought Sterling Tools.
PPAP has also delivered a mammoth gain of 269% since April 2016.
Rain Industries is still the crown jewel of Dolly Khanna’s portfolio.
Her investment presently stands at Rs. 163 crore and is about 25% of the portfolio.
We saw a report a few days ago about how Mohnish Pabrai has increased his investment in Rain Industries while Dolly has reduced hers.
This contrary action of the two luminaries has baffled cloners who are dependent on copying their moves.
Rain Industries is in a free-fall probably over fears that the business environment is turning adverse for it owing to the revival of competition from China and the impending ban over pet coke.
Two new additions to Dolly Khanna’s portfolio
(i) Selan Exploration
A sharp-shooter at the famous RJ Fan Club was the first to sound the red alert that Dolly has given Selan Exploration pride of place in her portfolio.
Dolly holds 2,43,400 shares of Selan comprising 0.74% of her net worth.
Selan is/ was one of Porinju’s favourite stocks.
He has been periodically recommending it since time immemorial.
Selan@275 is my best pick now! Got permission for a fresh batch of 6 wells at Bakrol. back on growth path after wasting 2 years!
— Porinju Veliyath (@porinju) March 4, 2013
Selan@250 underperformed due to drilling delays. surprised at price decline. I am confident on the stock and its fundamentals.
— Porinju Veliyath (@porinju) April 26, 2013
After Porinju’s recommendation of early 2013, the stock did surge like a rocket to touch Rs. 644 in July 2014.
However, thereafter, for one reason or the other, the stock has not performed upto expectations and has disappointed.
Also, it appears that crude oil prices are sinking to new lows, which does not augur well for oil producers like Selan.
Crude Oil cracks !!
— Ajaya Sharma (@Ajaya_buddy) July 11, 2018
Crude oil benchmark Brent sees biggest one-day fall in two years https://t.co/gg98mrdjZh
— Reuters Business (@ReutersBiz) July 11, 2018
However, some distinguished experts have foreseen an upward price trajectory for crude oil which means that Selan may someday again fulfill Porinju’s prophecy and deliver multibagger gains.
See crude oil prices in range of $75 – $80 a barrel for next 18 months: S&P Global Platts' Paul Hickin tells @IamPuneetW https://t.co/XxVsk48TSy pic.twitter.com/lsD1GoIHV4
— Business Standard (@bsindia) July 10, 2018
Prima facie, it appears that Selan Exploration is a low-conviction bet for Dolly given that she has allocated only Rs. 4.80 crore to the stock, which is literally petty cash for her.
(2) Muthoot Capital
The introduction of Muthoot Capital is not a surprise given that Manappuram Finance, its arch rival, occupies second place in Dolly Khanna’s portfolio.
We have seen earlier that Dolly follows the modus operandi of buying multiple stocks from the same sector so as to avoid the risks from a concentrated holding.
Muthoot Capital is an excellent pick according to the opinion of leading experts.
.@CNBCTV18Live @CNBCTV18News #Antique's target price on #MuthootCapital of Rs1051, which was an upside of 31% from the date of report, has been achieved in 5 months https://t.co/7CrQd0SJ4p
— Abhishek Kothari (@kothariabhishek) June 13, 2018
Growth has been consistent in non-south regions. Digital processes are helping us to exploit operating leverage. Have 3500 branches from Muthoot Fincorp that help source biz, says Mr. Madhu Alexiouse of Muthoot Capital to @NayantaraRai @TheMuthootGroup pic.twitter.com/LQ8uqA6c7t
— ET NOW (@ETNOWlive) June 15, 2018
.@CNBCTV18Live @CNBCTV18News #Antique on gold loan financing sector: Growth returns after 6qtrs#Manappuram BUY, TP at Rs125
Rough patch ends, growth starts, no case to increase target#MuthootFinance BUY, TP at Rs550
Fine blend of stability & growth
FY19 holds a lot of promise pic.twitter.com/ru7WCWQDbS— Abhishek Kothari (@kothariabhishek) June 13, 2018
Muthoot Capital has done the sensible thing of appointing the ultra-charming Vidya Balan as its ambassador.
The Muthoot Pappachan Group has appointed film actress @Vidya_Balan as brand ambassador and unveiled a new corporate identity | @metrovaartha https://t.co/LcBtKiHT1T
— Muthoot India (@MuthootIndia) July 10, 2018
No doubt, Vidya Balan will bring good luck and usher the stock to new heights.
Is Dolly Khanna also bullish about Goa Carbon?
Some vigilant sleuths have reported that Dolly holds 48,195 shares in a company named as Goa Carbon Ltd.
The holding is as of 31st March 2018. The present holding is not known.
According to screener.in, Goa Carbon has reduced debt and has a healthy dividend payout of 23%. The dividend yield is a hefty 2.31%. The RoE is healthy at 12.06%.
However, there appear to be downsides also.
We will have to scout for research reports from reputed brokerages before we can take a call on whether we should follow Dolly’s illustrious footsteps into the stock or not.
He is smart. Looks like he has trimmed down his Sugar holding.
Its in the interest of the retail investor to stay away from sugar stocks. Daily trying to figure out whats happening in brazil. etc look stupidity from a retail investor point of view.So its better avoided from a retail investor point of view
Although Dolly khana portfolio is always good and She is always ahead in identifying good quality stock and also good at timely exit. But this time I feel that this portfolio is ill prepared for uncertain times ahead now and may underperform market now and if there is hung parliament after 2019 polls, this portfolio may get additional hit. But if there is political stability after 2019,then my views about this portfolio may change from neutral to positive.
I have been bullish of butterfly. But got it at wrong price i guess above 500. I have learnt now that price is also very important how ever great the story
There are hardly any volumes on this counter. Sometimes it becomes scary that the daily volumes are only a few hundreds only. The counter may have run out of steam as of now.
Many of stocks in portfolio are already multibaggers but has run ahead of fundamentals in mid cap rally which has already exhausted. Gold is already making new lows in international market with increase in interest rates in US but has not fallen much in India due to weakness in rupee but as now rupee may stabilise and gold may correct, which may create problems for Gold loan companies . R J is smart, might have trimmed Titan due to weakening of Gold prices internationally. No recommendation but for discussion only.
Gold looks notoriously bad in Indian context. The moment, INR starts appreciating, gold is going to loose much of its sheen for the next 2-3 years. Whether RJ did because of this or some other thing, don’t have any idea.
Informative
Rain industries will come back to its glory days soon. China output still not upto the mark, and PET coke ban is a small issue.
Dear ALL,
Clearly KNOW that: Previously there were “factions like Harshad / Manu Manek, Ketan Parekh / Few of the Current team’s operators…
As of NOW, there are mainly Two Groups and both are working on distinctly different stocks & they have an “mutual agreement” “NOT TO INTERFERE” in each other’s operations… So there is no fight bet’n the “factions/Groups” in the Markets and each one is making tons of money !!!
These VERY SAME Groups acts both as a “Bull & Bear” for their specific stocks depending on the emerging situation affecting the stock… … therefore it is highly erroneous to think that there is some NOVEL entity like Bear …or Bull !!!
Whey they buy they become bull, when they sell they become bear… !!!
ARB
Even if there are two groups, just wait both will be having bloody nose, this market is going to kill operators along with their Andh bhkats.Market is skewing itself to strong Quality Companies , operators has no capacity to manipulate there.They can just work in tandem with crook permoters ,these
crook promoters themselvel are caught between NPAs , false balance sheets and investigations.Just wait and see.
Dear Kharb,
I will be most happy person if “what you said” really happens over next few quarters or years !!!
Good luck & best wishes to you !!
ARB
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