Performance of stocks recommended in Sohn India Conference 2016
First, we have to perform the delightful activity of evaluating the YoY performance of the stocks recommended during last year’s Sohn India conference.
|Stock||Expert||YoY Gain (%)|
|Federal Bank||Akash Prakash||123|
|Coromandel International||Kenneth Andrade||78|
|A2Z Infra||Shanker Sharma||59|
|Kiri Industries||Shanker Sharma||18|
|Repco Home Finance||Shiv Puri||15|
|Interglobe Aviation a.k.a. Indigo||Raamdeo Agarwal||14|
|Tata Motors||Rakesh Jhunjhunwala||5|
As one can see, Akash Prakash of Amansa Capital has emerged in pole position with Federal Bank having delivered an impressive gain of 123% on a YoY basis.
The best part is that Amansa Capital is itself one of the largest shareholders of Federal Bank with a holding that is higher than that of Billionaires Rakesh Jhunjhunwala and MA Yussuffali.
He later also urged us to buy with the solemn assurance us that Federal Bank has “rediscovered its mojo” and has “significant upside”.
No doubt, the promise has been fulfilled.
Federal Bank was also recommended by Mark Mobius, the legendary fund manager with Templeton Mutual Fund, in an interview with Tanvir Gill of ETNow.
Kenneth Andrade and Shankar Sharma have taken second and third place with their stock picks having delivered gains of 78% and 59% respectively.
Rakesh Jhunjhunwala, the Badshah of Dalal Street, has to stay content with fourth place because DLF, his stock recommendation, delivered 34% gain.
The average gain from the eight stocks is 43%, which is quite a hefty return.
Stock recommendations of Sohn India 2017
Now, let us turn to the more important task of peering into the stock recommendations of the experts for 2017.
The recommendations are as follows:
|Aakash Prakash/ Aanand Chouhan||Info Edge|
|Raamdeo Agarwal||PNB Housing Finance|
|Kenneth Andrade||ENIL (Radio Mirchi)|
|Saurabh Mukherjea||Garware Wall Ropes|
|Shankar Sharma||MEP Infrastructure Developers|
|Hiren Ved||Varun Beverages|
|Shashank Singh||DCB Bank|
|Ashwini Agarwal||Persistent Systems|
|Sunil Singhania||Cement Sector|
|Navneet Munot||Telecom sector|
Youngster makes debut amongst legends
Aanand Chouhan, a 2nd Year student from IIM Bangalore, deserves to be complimented.
This youngster has achieved the unique and enviable distinction of sharing the stage with legendary investors and offering a stock recommendation.
What is even more impressive is that Aanand Chouhan’s stock recommendation is the same as that of Aakash Prakash, much to the delight of the latter as well as of the distinguished audience.
No doubt, this shows the caliber of Aanand Chouhan and we will have to keep a look out for his future endeavours.
Info Edge (Naukri) – 3x/ 4x multibagger with limited downside risk
Info Edge is the common stock recommendation of Aakash Prakash and Aanand Chouhan.
The duo explained that Info Edge has a stranglehold over several segments of the internet such as employment (naukri.com), real estate (99acres.com), matrimony (jeevansathi.com), food (zomato.com) and insurance (policybazaar.com) etc.
It is a matter of common sense that as more and more Indians take to the internet as a result of NAMO’s Digital India initiative, Info Edge’s fortunes will sparkle.
Aakash Prakash opined that the risk-reward ratio is very much in favour of an investment in Infoedge.
While the downside risk is minimal, the upside could be a magnificent 3x or 4x multibagger, he added.
It is notable that Amansa Holdings holds a massive chunk of 40,00,862 shares of Info Edge as of 31st March 2017.
Info Edge has other distinguished investors such as Nalanda India Equity Fund, Mathews India Fund, Morgan Stanley etc.
PNB Housing Finance is a “Lakh Crore Ki Kahani”: Raamdeo Agarwal
Raamdeo Agarwal’s words of wisdom can never be ignored by us because he has single-handed made an incredible fortune from the stock market.
In fact, Raamdeo and (Mr) Motilal Oswal have been officially awarded the prestigious title of “Billionaire” for having amassed a net worth in excess of Rs. 6500 crore.
PNB Housing Finance is a “Lakh Crore Ki Kahani”, Raamdeo Agarwal exclaimed loudly in his typical extravagant style even as the distinguished audience sat erect in their seats and took notice.
As expected, Raamdeo gave a masterful explanation as to why he regards PNB Housing Finance as having the potential to give multibagger gains.
However, we don’t have to labour the point much because Basant Maheshwari has already given us the green signal to invest in the stock by declaring that he is “super, super bullish” about it.
It is also worth recalling that Vijay Kedia has declared that the housing finance sector could be the “next market leader“.
A similar view has been expressed by CLSA, the internationally reputed broking house. It has assured that housing finance is a “trillion dollar plus market” and the “next big growth driver” for the economy.
So, under no circumstances should we be caught without PNB Housing Finance or some other HFC stock in our portfolio.
MEP Infrastructure Developers (“Ghotala” stock) – Shankar Sharma
Shankar Sharma’s stock recommendations are not for the faint hearted.
In his latest interview, Shankar made it clear that he loves buying stocks which are at the bottom of the barrel in terms of high debt, high losses, dubious corporate governance.
Shankar’s logic is that all expectations are drained out of such stocks and they are quoting at valuations which makes them literally risk-free. Even a slight improvement in the operational parameters of such stocks sends them flying into the sky.
In recommending MEP Infrastructure Developers, Shankar has stayed true to form.
The Company suffers from the malaise of high debt and has only now managed to eke out a profit.
Worse, the Company was caught with its hands in the till. It is alleged to have been indulging in the deadly offence of “toll collection fraud”.
However, the stock has given an impressive return of 163% on a YoY basis. So, it does appear that Shankar is correct in his theory that drawbacks have to be forgotten because the positive features of profitability and debt reduction plan will continue to spur the stock to new heights.
Other stock recommendations
The other stock recommendations offered by the stalwarts are equally well thought of. We can confidently say that these are fail-safe stocks that we can buy without having to look over our shoulder for lurking dangers!