Neha Majithia of Microsec belongs to the hallowed club of stock pickers whose recommendations you need to pay attention to.
Her track record speaks for itself. Top quality winning stocks like La Opala (8 bagger), Somany Ceramics (4 bagger), Dhanuka Agritech (3 bagger), Cera Sanitaryware (2 bagger) tell you everything that you need to know about her stock picking skills.
Neha released a report in May 2014 advocating a buy of Whirlpool. Her rationale was simple: Whirlpool is part of a global MNC, it has zero debt, powerful brands and marketing muscle. To top it, its valuations are reasonable. So, how can you lose, she asked, with a sparkle in her lovely eyes.
Neha first homed in on Whirlpool in November 2013 when the stock was at Rs. 171. Then, in May 2014, when the stock had surged to Rs. 304, she advised investors to buy more.
Today, Neha’s prophecy came true because Whirlpool reported block-buster Q1FY15 results. The net profit surged 66% YOY to Rs. 83 crore. Net sales surged 19% to Rs 1,052 crore YOY. EBITDA surged increased 57% to Rs 130 crore while the EBITDA margin surged 300 basis points to 12.7%.
Within seconds of the results becoming public, delirious investors thronged the counter and sent the stock price surging to Rs. 412, tripping the UC in the process. There will be a couple of more UCs to reckon with.
People who followed Neha Majithia’s splendid advice have taken home a gain of 136% since the first recommendation and 35% since the second.
The irony is that when I profiled the stock pick, I raised the issue whether Bajaj Electricals “offered more bang for the buck” than Whirlpool. I relied on logic, which seemed appealing at that time.
Unfortunately, Bajaj Electricals did the reverse of Whirlpool and reported disappointing results. Bajaj is down 25% since that day.
Luckily, all may not be lost yet for Bajaj Electricals’ shareholders because Khushboo Jaiswal of Microsec has recommended a buy with a target price of Rs. 405.
ICICI has also recommended a buy with a target price of Rs. 416.
Coming back to Neha Majithia, her latest stock pick is Lloyd Electric. Lloyd has also been given the coveted status of a “strong buy”. Neha recommended the stock at Rs. 123 and has promised a gain of 67% (TP Rs. 205) from the stock. At the CMP of Rs. 141, about 14% gains are already on the table.
So, if you don’t have any of Neha’s stellar picks in your portfolio, you need to read up her research report and take an informed decision.