43% gain in 2016-17, 34% gain in 2017-18
Edelweiss appears to have discovered the magic formula for defying the Bears and churning out massive returns from their stock picks.
Their recommendation for 2016-17 delivered massive average gains of 43% as seen below:
| Diwali Picks | Entry | 1 Year Price | Returns |
| Bajaj Finance | 1115 | 1727 | 55% |
| Kotak Mahindra Bank | 780 | 987 | 26% |
| Motherson Sumi | 218 | 324 | 50% |
| PC Jewellers | 252.5 | 356 | 41% |
| Portfolio Returns | 43% | ||
| Nifty Index | 14% | ||
| Alpha | 29% |
The Nifty gave a return of only 14% which means that the Alpha is 29%.
The excellent show continued in 2017-18 as well with the stock picks giving an average return of 34%.
The Mid-cap Index lost 7% in the same period which means that the Alpha is a hefty 41%.
| Diwali Picks | Entry | 1 Year Price | Returns |
| National Aluminium | 82 | 70 | -15% |
| NIIT Technologies | 595 | 1164 | 96% |
| Bharat Forge | 640 | 585 | -9% |
| Radico Khaitan | 172 | 404 | 135% |
| MCX | 1103 | 700 | -37% |
| Average | 34% | ||
| Mid Cap | -7% | ||
| Alpha | 41% |
Radico Khaitan was a stunner with a massive gain of 135%.
Incidentally, Radico Khaitan is a core stock in Dolly Khanna’s portfolio of multibagger stocks.
NIIT Technologies also displayed amazing grit by surging 96%.
However, MCX was a major disappointment with a loss of 37% as was National Aluminium with a loss of 15%.
53% gain expected in 2018-19
Edelweiss is very bullish about their stock picks for 2018-19.
They have handpicked 5 stocks and foreseen a hefty return of 53% from them.
The chosen five stocks are the following:
| Stocks To Buy | Entry | Potential Target |
| Axis Bank Ltd | 603 | 900 |
| Aurobindo Pharma Ltd | 790 | 1200 |
| PVR Ltd | 1423 | 1850 |
| Muthoot Finance Ltd | 445 | 700 |
| Firstsource Solutions Ltd | 57 | 100 |
| Potential Portfolio Return | 53% | |
It is notable that Firstsource Solutions is the star of the portfolio with expected gains of 75%.
This is a sensible pick because the stock is already a star in Rakesh Jhunjhunwala’s portfolio.
Firstsource Solutions has enriched Rakesh Jhunjhunwala with 50% YoY return which clearly implies that it has the potency to deliver the expected mega gains of 75% in 2019.
Muthoot Finance is also one of darlings of the portfolio with expected gain of 57%.
Muthoot Finance is the younger sibling of Muthoot Capital which is one of the trusted confidantes in Dolly’s Khanna’s portfolio.
Edelweiss has given a succinct commentary for each stock which can be read from the report.
