Daljeet Kohli’s USP is that he is very clear headed. Unlike the rest of us, there is no trace of doubt or confusion in his mind when he is recommending a stock. We have seen this right from the day that he recommended Ajanta Pharma and Alembic Pharma when they were at throwaway valuations. Today, both of these stocks are super duper multi-baggers.
It is true that his stock pick, Sharon Bio-Medicine, did not work out. However, this is due to the recklessness of the promoters in causing her pledged shares to be sold and not due to fundamental reasons. Of course, Daljeet ought to have been wary of recommending a stock with pledged shares though he was probably dazzled by its fundamentals.
(Incidentally, Sharon Bio-Medicine was up 10% today on the back of heavy buying).
Anyway, coming back to Nesco, Daljeet first homed in on the stock in his report dated 1st April 2013 when the stock was languishing at Rs. 769. He called the stock a “debt-free cash cow with negative working capital cycle” and recommended a buy with a target price of Rs. 1133 (45% upside). When that was effortlessly taken out on 13th June 2014, Daljeet issued an update increasing the target price to Rs. 1,680 (another 45% upside).
What was implicit in Daljeet’s analysis is that Nesco is/ was the classic “Heads I Win, Tails I Don’t Lose Much” kind of stock where you could invest large sums in the assurance that you would not lose much even if all projections failed.
At this stage, we must note the contribution of Nooresh Merani, the technical whiz kid & CEO of Analyse India. After some brilliant chart reading, Nooresh Merani advised investors that Nesco had given a “channel breakout or a flag breakout” and that it has a target of Rs. 1800 over the next few months.
Today, in a surprising move, Nesco spurted 20% to reach Rs. 1697 on the back of heavy volumes. The result is that Daljeet’s followers have taken home gains of 120% in 18 months while Nooresh’s followers have taken home gains of about 30% in less than a month. We have to bear in mind that Nooresh Merani’s target price for Nesco is Rs. 1800, which means that some upside is still left in the stock. We also have to wait for Daljeet’s update for the stock.
In the meanwhile, you can take a look at Ashiana Housing which appears to be a bit under the weather owing to the alleged slowdown in the realty sector. Daljeet and Religare have come out strongly in favour of the stock. It is also backed by whiz-kids Westbridge Capital, Ashish Kacholia & Prof. Sanjay Bakshi. We have to keep an eye on the stock because you never know when it will surprise on the upside.