Dolly Khanna’s timing and skill in finding stocks that are on the winning track is just unbelievable.
In August 2013, Liberty Shoes was a totally unwanted and discarded stock. It hit a 52 week low of Rs. 68 on 8th August 2013. Dolly was the only one who saw the potential of the stock. She quietly scooped up a truckload (1,73,758 shares) of the stock and walked away. Nobody paid her any attention.
Today, just 3 months later, the stock is bursting at the seams at Rs. 155 and everybody is clamoring for a piece of the action. In just 7 days, Liberty Shoes has soared 70%. The stock has more than doubled in 3 months.
The reason for the sudden exuberance is that Liberty Shoes has reported excellent results. The total operational income for H1 2014 has surged 44% to Rs 209 crore YOY. The Net Profit for H1 2014 has increased 100% YOY to Rs. 5.63 crore.
Adding to the buying frenzy is the bullish statement of Liberty Shoes’ CEO, Adesh Gupta, that the company will outperform peers by achieving a revenue growth of 30-40% in FY 2014 and a turnover of Rs 500 crore.
Adesh Gupta confidently told CNBC TV-18 that despite the slowdown, there was a huge movement of customers flocking to Liberty Shoes because of the change in the merchandise assortment. He said that the company would add almost 30 lakh new customers this year.
Meanwhile, Dolly Khanna is grinning from ear to ear at the huge riches that have come to her from her excellent stock picks. Cera Sanitaryware, where she holds a chunk of 1.45 lakh shares, is also surging to new all-time highs. Cera is up 84% YOY.
Her other stock pick, Relaxo Footwears, has been endorsed by Prof. Sanjay Bakshi, an authority on value investing, as being a terrific stock. Prof. Bakshi gushed “I am confident that Relaxo will continue to grow faster than the market by taking market share from the unorganised players – just as it has been doing over the last several years”. Relaxo is up 35% YOY.
Now, the only stock that has not participated in the fireworks yet is Hawkins Cookers, where Dolly Khanna is the single largest public shareholder with 1.05 lakh shares. Hawkins Cookers also happens to Basant Maheshwari’s favourite stock.
In my view, it would be foolish to miss out on a stock that is endorsed by two master stock pickers. Hawkins Cookers is lying low only because of some temporary problems that it has faced. It is like a coiled spring ready to erupt. So, if you missed Liberty Shoes, Cera and Relaxo, you should consider tanking up on Hawkins Cookers so as not to be left behind when (not if) it surges ahead (I already have a big chunk of Hawkins Cookers in my portfolio).