Daljeet Kohli and Prerna Jhunjhunwala deserve to be complimented for the consummate skill that they have demonstrated in recommending HSIL as an investment.
The duo first homed in on HSIL on 16th April 2014 when it was quoting at Rs. 136. The stock was unwanted at that time because of the losses that it was suffering in the glass (containers) division. However, Daljeet & Prerna had the foresight to see that the business was undergoing a “turnaround” and the container division would turn to profitability in a few quarters.
HSIL came to my attention in May 2014 when Daljeet & Prerna issued an “Initiating coverage” report. I immediately reported this in my piece “Keep A Lookout For HSIL. Daljeet Kohli Has Put A Buy On It”. The stock had surged to Rs. 180 by then.
In my piece, I supported the analysis by referring to NAMO’s 100-cities plan (“Pehle Sauchhalya Phir Devalaya”). I also referred to the statement by RB Kabra, President, HSIL, that there was “huge scope for expansion in the sanitary ware business”.
Then, when HSIL reported blockbuster Q4FY14 results, and the stock price surged to Rs. 220, Daljeet and Prerna issued an update advising a buy and promising a target price of Rs. 330. I reported this in my piece “Daljeet Kohli Sees 50%+ Upside In HSIL. Do You Have The Stock In Your Portfolio?”
Well, today, even that target has been achieved on the back of encouraging Q1FY15 results. This means that investors who heeded the buy call from Daljeet and Prerna in April 2014 (5 months ago) are sitting on gains of nearly 150%. Even latecomers, who in bought the stock in June 2014, after the price had surged, are taking home gains of 50%+.
As to the future, given NAMO’s 100 cities plan, the future is indeed bright for all top-quality stocks like HSIL etc. I have earlier referred to Basant Maheshwari’s stellar advice (see Basant Maheshwari Recommends 5 Top Quality NAMO Stocks To Buy Now) on why one should grab stocks like Repco Home Finance, Cera Sanitaryware, Kajaria Ceramics etc, as they will benefit from NAMO’s game plan. I have also suggested a close look at the Housing Finance companies in my piece “Why We Need To Grab A Chunk Of Housing Finance Stocks Soon” and “Why We Need To Grab Stocks Now Before NAMO Implements His “100 Cities” Idea”.