Track record of stocks recommended by CNBC TV18’s stock wizards for 2017
First, we have to perform the ritual of checking the performance of the seventeen stocks recommended by the wizards for 2017.
The performance is as follows:
|Stock||CMP (Rs)||YoY (%)|
|Daljeet Singh Kohli|
As one can see, the performance is quite impressive. As many as eight stocks have given returns higher than 50%. One stock (Shakti Pumps) has given a mind-boggling return in excess of 200%.
Two stocks gave a negative return while two were almost flat.
The average return of the said seventeen stocks is 50% which is quite impressive.
In comparison, the average return generated by the wizards of Outlook Business in 2017 was 36%.
Now let us turn to the important task of perusing the multibagger recommendations of the wizards for 2018.
These are as follows:
|Stock||CMP (Rs)||YoY (%)|
|Engineers India (EIL)||328||20|
|Camlin Fine Sciences||130||33|
|Karur Vysya Bank||124||65|
Prima facie, the selection of stocks looks quite stellar. All the companies are well known and have a distinguished track record of corporate governance and profitability.
Six stocks in the list are already multibaggers with a YoY return in excess of 100%. This implies that the stocks have a robust business model and the stamina to deliver more gains in 2018 as well.
Asian Granito is Dolly Khanna’s favourite stock. I reported earlier about how Dolly bought the stock when it was languishing unwanted and how she effortlessly pocketed multibagger gains from it. Several leading brokerages have now recommended a buy of the stock on the basis that the expected boom in the home improvements sector will send the stock soaring into orbit.
Mehraboon Irani has assured that Asian Granito would surge to Rs. 750 – 800 within the next 12 months. He explained that the Company is the third most profitable tile company in India and the fourth largest in terms of turnover. He also opined that the company would report compounded annual growth rate (CAGR) growth of at least 40 percent over the next 2-3 years.
Karur Vysya Bank and Edelweiss are also no-brainer stock buys because they are the high-conviction stock picks of Rakesh Jhunjhunwala, the Badshah of Dalal Street.
The Badshah has raked in an enormous fortune from both stocks. However, given that these stocks are still mid-caps, it implies that they have a long road of wealth creation ahead of them.
In Edelweiss, Rakesh Jhunjhunwala is in the distinguished company of Akash Prakash of Amansa Capital.
Mehraboon opined that Edelweiss’ dominance in sunrise sectors like asset management, wealth management, stressed asset reconstruction, insurance etc makes it immune to the vagaries of interest rates and a force to reckon with.
He predicted that Edelweiss would see a target price of Rs. 450 shortly.
AksharChem was one of Dolly Khanna’s favourite stocks and was once spotted in her portfolio. However, for reasons that are not known, Dolly appears to have been spooked about something. She beat a hasty retreat and dumped the stock.
Her dumping the stock was providential because Aksharchem thereafter reported poor quarterly results which sent the stock plunging.
SP Tulsian has now opined that the poor results are priced in and the stock is ready to make a comeback. He has emphasized that the company’s product profile of dyes and pigments coupled with the ambitious expansion plans and the debt-free status make the stock irresistible for discerning investors.
As regards the other stocks in the recommended list, the wizards have provided a detailed commentary in which they have explained all of the merits of the stocks and why they deserve to be given a place in our portfolios.