On Friday, 28.02.2014, when Tata Elxsi spurted 13% to touch an all-time high of Rs. 586, Vineeta Mahnot and Astha Jain of Hem Securities had a big smile of their lovely faces.
The two ace stock pickers had good reason to be pleased because since they put their trust in Tata Elxsi in November 2013, when the stock was quoting at Rs. 253, the stock has given a staggering return of 131%.
The reason for the great exuberance amongst investors is because Tata Elxsi has showed considerable improvement in revenue and profitability over the last three quarters. It is engaged in the niche business of software development which has high margins. The revenue shot up 28% to Rs. 200 crore while the net profit rocketed nearly one-and-half times to Rs. 22 crore. The EBITDA margin for the first nine months of 2013-14 was 18%, nearly twice that in the year-ago period.
Now, the great thing that Vineeta Mahnot and Astha Jain have to take pride about is that Tata Elxsi is not an isolated success story. In fact, several of their stock picks like Vaibhav Global (recommended in August 2013 at Rs. 176, CMP Rs. 698, gains 295%), Suven Life Science (recommended in October 2013 at Rs. 46, CMP Rs. 75, gains 63% and Fiem Industries (recommended in December 2013 at Rs. 337, CMP Rs. 386, gains 14%) have given outsized gains to delighted investors.
In fact, the spectacular gains of Tata Elxsi pales into insignificance when you compare it with the nearly 3-bagger gains that Vaibhav Global has garnered.
The only stock that has not fired so far is Himatsingka Seide. The stock was recommended in January 2014 at Rs. 61 per share. At the CMP of Rs. 56, the stock is nearly flat.
So, next time, keep a keen look out for the stock picks of Hem Securities. Who knows, it might be your ticket to multibagger profits!