Heavy multibagger gains in 2017, more to come in 2018?
2017 has been a good year for novice investors. We have been able to effortlessly snare multibaggers for our portfolios by the simple expedient of holding on tight to the coat-tails of eminent investors.
Hopefully, the good run will continue in 2018 and we will be able to bask in more riches with bulging bank balances.
Five mid-cap multibagger stocks to buy in 2018
Jwalit Vyas has used the enormous resources of ETIG to cherry-pick five stocks which are exhibiting all the attributes of a multibagger.
Let us get a grip on these stocks without further delay.
Manappuram Finance, cheapest NBFC stock
Manappuram Finance is one of Dolly Khanna’s highest conviction stock picks. It is in fact tied with Rain Industries for the coveted position of crown jewel of Dolly Khanna’s portfolio.
Dolly broke her long standing rule of not investing in Banks and NBFCs and made an exception for Manappuram Finance.
So, this gives us an idea of the potency of the stock.
I reported earlier that a big-ticket FII named Quinag Acquisition (FPI) Ltd has stormed into the stock.
In addition, Ekansh Mittal of Katalyst Wealth has recommended Manappuram Finance as his “Best pick for 2018”.
Ekansh Mittal is known for his conservative approach. He prefers to err on the side of caution rather than take a chance.
So, a green signal from him implies that we can buy the stock without a care in the World.
Jwalit Vyas has now opined that Manappuram Finance is the cheapest NBFC stock on the planet. He has also emphasized that the promoters are buying the stock which implies that the Company is doing well.
Nilkamal, cheapest in the plastics sector
When Dolly Khanna aggressively grabbed Nilkamal in April 2014 with both hands, I instinctively knew that the stock would turn out to be a mega bagger.
As usual, I was right because today the stock is up an eye-popping 1000% (10-bagger).
Nilkamal’s dominant brand image and strong distribution network means that more multibagger gains are waiting in the wings according to Jwalit Vyas.
The astonishing part is that despite its multibagger credentials, Nilkamal has been described by Jwalit Vyas as the “cheapest” stock in the plastics industry.
What about Prima Plastics?
At this stage, we have to ask the pertinent question whether Prima Plastics, which is in the same business as Nilkamal, is also a good/ better stock pick.
Prima Plastics was first discovered by Aceinvestortrader, the famous anonymous blogger, when it was available at the throwaway valuation of Rs. 41.
“The stock has broken out of 9 yr long consolidation and it will not just double or triple and stop. It will go wayyyy beyond,” aceinvestortrader claimed.
His words were prophetic because the stock is up in excess of 400% since then.
Shyam Sekhar and Jyotivardhan Japipuria, both noted value investors, have big chunks of Prima Plastics in their respective portfolios.
This puts us in the difficult position of having to decide whether to back Dolly Khanna or the duo of Shyam Sekhar and Jyotivardhan Jaipuria.
We can play it safe by backing both so that there is no risk that we will be unfairly deprived of the multibagger gains that will gush out of either or both stocks.
JSW ENERGY – Betting on Power Sector Revival
Mudar Patherya’s recommendation of Adani Transmission as the ideal candidate to take advantage of insatiable demand for electricity was simply brilliant. The stock is up more than 200% and is still flying high.
JSW Energy appears to be in the same mould given its strong balance sheet and cheap valuations of PBV of 1.2.
It is implicit that NAMO’s ambitious “Saubhagya Scheme” under which Rs. 16,300 crore is to be spent on power infrastructure will catapult the fortunes of all power companies into orbit.
RK Forgings – Best Play on CV Uptick
All commercial vehicle and auto ancillaries stocks are flying high while RK Forgings is subdued.
This makes the stock the ideal buy according to Jwalit Vyas. Its valuations are cheaper compared to arch rival Bharat Forge.
RK Forgings is also the favourite of Sanjoy Bhattacharyya, the doyen amongst value investors. He bought a massive chunk for his Ocean Dial Gateway to India Fund.
We can also consider Automotive Axles which is a powerhouse of the Kalyani Group. Mudar Patherya recommended it a few days ago as his Christmas Gift to us. The stock is also recommended by DD Sharma, the veteran stock picker.
Quick Heal – Digitisation Play
Quick Heal has the privilege of being first recommended by Ramesh Damani on the basis that it is a classic amalgam of ‘Make in India’ and ‘Digitisation/ Internet Boom’.
However, when the stock pick did not work out, Ramesh Damani gracefully acknowledged it.
#CNBCTV18Exclusive | Cyber Security Idea Didn’t Work Out The Way I Thought Of; Positive On Quick Service Restaurant Space,Says Ramesh Damani
— CNBC-TV18 (@CNBCTV18Live) June 5, 2017
Thankfully, Quick Heal appears to be getting its act in order if one goes by the September 2017 quarter results.
The company is also flush with cash of Rs. 460 crore which makes it an irresistible bet according to Jwalit Vyas.