Prof Sanjay Bakshi, the authority on value investing, imposes very high demands on his stocks. He expects them to have a solid business model with a deep and impenetrable “moat”. He also expects the management to have utmost integrity and excellent managerial skills. In addition, because the Prof is allergic to debt, he wants the companies to be debt-free. Another non-negotiable criterion that the Prof stipulates is that the companies must have high ROE and profit margins.
It is obvious that very few companies pass through the Prof’s stringent filters. The few that do are meant to be grabbed with both hands and cherished for a life-time.
There are several examples to prove that we cannot ignore the Prof’s stock picks or stay aloof from them.
Relaxo Footwears is a classic example. The Prof released a lecture note on 20.09.2013 in which he waxed lyrical about Relaxo’s future prospects. Before our very eyes, the stock has effortlessly turned into a mind-boggling seven-bagger!
Thomas Cook is another example. Since the Prof’s “lecture note” of 01.12.2013, the stock is up a magnificent 168%.
There are other examples which I will not go into for want of time.
Now, lets take a quick look at the Prof’s other stocks that have been pounded out of shape:
Ashiana Housing & Poddar Developers:
Both stocks have been pummeled over poor Q1FY16 results as well as the savage slowdown in the realty sector. Ashiana lost 10% yesterday and also today. Poddar Developers lost 11% today. Ashiana had touched a high of Rs. 327 on 24.02.2015. At the CMP of Rs. 171, there is a loss of 47%. Similarly, Poddar had touched a high of Rs. 1710 on 07.07.2015. At the CMP of Rs. 1325, there is a loss of 22%. In just the last month, Ashiana has lost 26% while Poddar has lost 14%.
There is no doubting the quality of both stocks. A slight change in the sentiment towards realty stocks, caused by say, a drop in interest rates, can send both stocks surging back to their upward trajectory.
| Stock | Correction in last month (%) |
| Kitex Garments | 27 |
| Ashiana Housing | 27 |
| Poddar Developers | 14 |
| Ambika Cotton | 12 |
| Vaibhav Global | 9 |
Ambika Cotton Mills:
The stock touched a high of Rs. 1148 on 07.08.2015. However, because it reported poor Q1FY16 results, it has corrected 28% in just the past few days.
Here again, one cannot doubt the pedigree of the stock. Also, according to some leading experts, the tailwinds are in favour of the textile sector.
Vaibhav Global:
Vaibhav Global is lauded as the only e-com company to be making a profit. However, the paradox is that while its loss making peers are commanding sky-high valuations, Vaibhav is going a-begging.
According to Runjhun Jain of Nirmal Bang, Vaibhav Global’s asset-light model with high ROCE and free cash means that it is only a question of time before the Sun shines again on the stock.
Kitex, Symphony Coolers & Wim Plast:
Each one of these stocks is a text book example of what a top-quality stock looks like. However, each one of them has faced a sound drubbing in the correction that the markets are currently undergoing.
In my view, each one of us needs to carefully evaluate the prospects of each stock. If we are convinced about the long-term prospects of the stocks, then the present correction is a blessing in disguise and an opportunity for us to give these stocks pride of place in our respective portfolios.
all are indian fanatics
not only seven
poddar
ambika
viabhav etc
had he said one word about Shri Dirubhai Ambani who is the founder of equity cult in india followed by Perwani who introduced Master share i would not have written this
arjun and co reflect on this and talk of those who have no vested interest
anythign of amra raj battery founder who ousted a multinational and conquered indian battery business..
this is not fanatic
i donot have to go to any school of economics to know this
god bless u
writing with utmost honesty
I don’t understand a word of what you are trying to say…
lol….i cant understand a word of anything written on this board. I am not sure if people are praising each other or panning them.
Sir everybody eats their cake first, let’s be honest prof lectures are basically his picks with his analysis and would only paint rosy picture without covering the risks basically marketing pitch but always has some lesson to learn and without this hype they would not have caught market’fancy. He is aggressive but if you can benefit from it or learn couple of things why not
what is this ?????nobody can understand,explain in details
Jacob,
What you wanted to say…
Jacob,
What you want to say? please elaborate.
I just want to say this…. do not follow too much the gurus like, Prof Bakshi, basant
maheswari, porinju, dolly ,buffet , etc etc..( more names but not mentoined).
The thing is.. we should learn stock picking skills from them ,but do not follow blindly thier particular picks. ( Intra traders can do it short term ,i think). Long term investors should be carefull… because we may know thier entry time but we will never know thier exit timing… this will certainly kill us.
See how dolly has dumped hawkins stock every alternate day last year when yu all were aggresively buying it when it was making new high…
for all we know basantM may have dumped Page industries AS WE ARE reading this. We should not be angry with them, it is entirely thier call , and they are whithin thier full right to do it…
my point is this … when a mid/small cap stocks comes too much in the news
for some time in media ,,its time to exit,,,,
mY FORMULA for success.
Spend weekends reading /surfing/googling stocks preferebaly small/midcaps and enter/buy very early and hold with conviction till some target achieved and start exiting when target achieved.
put the profit in some debt fund or new stocks…
good luck to all
atif sir
I am also agree with you. anyone must not be followed blindly .
can u suggest some good websites to search investment ideas in weekend leisure
regards
sushil
Its a good time to build a portfolio of these stocks, slowly nibbing on the stock prices on the upcoming days. The market will correct more on negative sentiments. GST bill not passed on the parliment, currency valuvation of china etc..
So the market will still correct im the coming days… Keep a watch on good stocks and add when you see a good price and value.
All these stocks are currently highly valued, but offcourse the value is for the ongoing growth of the respective stocks. If you are a long term investor off course this is a good time to buy the stocks like the below :
Thomas cook, Kitex garments, Ashiana housing, Vaibhav global etc…
Keep your eyes open..
Further to my above post –
Every small inverstor hides when there is a correction in stock market. This is a problem i too have the same problem. But instead we should agressively buy the stocks when there is a good correction provided that the fundamentals of the company is unchanged.
In my opinion there is no change in the fundamentals of any of the above companies, some companies like Thomas cook are on a aggresive growth path by getting more companies. Offcourse this will take some time may be 2 to 3 years to show in the profit books. Others like Ashiana housing are doing quiet well instead the sector is negative now by mind that the sector cannot remain like that for too long and very soon there will be a rate cut and a upswing.
Kitex is a good company too, their growth is fantastic. They are supplying childrens wear to some of the best MNCs in USA also they are planning to setup their own label in USA, so its a matter of time and the stock prices will surely shoot up. Remember time is a friend of good business.
I don t know how other stocks will fare but be careful with symphony. Their mcap is out of whack and they sell misplaced product for Indian condition and with cheap Chinese import available under all brands
Only issue with the kitex is the huge amount of cash of 200 crores lying idle in the bank account.
Why?
Why not invested in some short term liquid funds or FMP’s?
What are their planning with these huge money?
Something to do with merger with kitex childrenwear?
This is one big red flag with kitex.
@ Chirag,
Kitex is planning to set up their own label for childrens wear in USA offcourse that needs money, also after this they are planning for a good launch in India most probably thats where the cash will be used.
These things will happen only in a couple of years.
Agree and do know that but why is company losing interest money by investing in short term liquid fund. Moreover they paid interest of 21 crores in fy 15.
Wondering how long will Vaibhav Global survive. They are not an e-commerce company. As per reviews gathered from all over the web, they are totally into some shady business, which though may go on for sometime but the eventual outcome will be ugly. Investors beware.