In my piece of 15th January 2015, I sounded the alarm that Ashish Kacholia and Rahul Saraogi of Atyant Capital are surreptitiously buying truckloads of Navin Fluorine. I emphasized the point that Rahul Saraogi’s interest in the stock is very significant because this stock wizard has a reputation for demanding “asymmetrical” gains from his stock picks – i.e. he expects the rewards to be far in excess of the risks.
Then, in March 2015, when the stock had already notched up 27% gains, I sent a reminder urging everyone to quickly take note of the stock and take appropriate action.
In July 2015, when the stock had notched up 100% gains since my write-up, I sent yet another reminder where I boldly called Navin Flourine a “no brainer”. I also pointed out that when a stock is backed by Ashish Kacholia and Rahul Saraogi, that stock can be said to have the best combination of “safety” and “growth”. One really cannot go wrong with such stocks was my bold assertion.
Today, Navin Flourine surged 20% to rest at Rs. 1652 to celebrate blockbuster Q2FY16 results. The net profit surged 130.5% to Rs 23.23 crore while the net sales surged 21.7% to Rs 150.76 crore in Q2 September 2015 over Q2 September 2014.
|NAVIN FLUORINE INTERNATIONAL LIMITED – FINANCIAL RESULTS|
|PARTICULARS (Rs. CR)||SEP 2015||SEP 2014||% CHG|
Since I wrote my first piece in January 2015, the stock is up 154%. On a YOY basis, the stock is up 177%.
The moral of the story is that we should never be dismissive of the stock picks of the wizards especially when two or more of them team up to aggressively buy a stock.