New year gift bonanza for novices
It is the unwritten law in Dalal Street that all luminaries have to offer stock recommendations to novices on auspicious occasions like Diwali, Dussera, New Year etc.
Porinju Veliyath, as usual, was the first in the queue to offer recommendations.
For 2019, he has recommended that we invest in “safe” stocks with multibagger potential (see Porinju Veliyath Recommends Safe Multibagger Stocks For 2019).
Shankar Sharma also has fulfilled his obligation by recommending a fail-safe large-cap stock which has been a magnificent 15-bagger in the recent past (see Shankar Sharma Recommends Blue-Chip Multibagger Stock For 2019).
Basant Maheshwari is also eager to see that novices are able to make a living from Dalal Street.
He has recommended two NBFC stocks and also revealed the strategy that he intends to adopt in 2019 to snare multibaggers for himself and his distinguished PMS clients (see Basant Maheshwari Reveals Stock Picks + Multibagger Strategy For 2019).
Now, it is Vijay Kedia’s turn to fulfill his obligation.
“Top stocks you think are good buying ideas with a target price for the year 2019?” Vijay Kedia was asked in a point-blank manner by Kshitij Anand of moneycontrol.com.
“Everest Industries, Repro India, Sudarshan Chemical Industries and Vaibhav Global” pat came the reply.
Vijay Kedia explained that these stocks are good buys for 2019 because they are doing well and moving into a high growth era.
“Skin in the game” recommendations
We have to compliment Vijay Kedia because he has not given us abstract or theoretical recommendations but has instead recommended stocks which are a part of his own portfolio.
The holding of Vijay Kedia as of September 2018 in the four recommended stocks is as follows:
|Stocks recommended by Vijay Kedia for 2019 and held in his portfolio|
|Nos of shares
(Vijay Kedia and Raamdeo Agrawal rejoice in anticipation of multibagger gains in 2019)
Vaibhav Global has been a magnificent multibagger in the past with a fabulous return of 5650% (56-bagger) over the past 10 years since 2008.
The return over the past 24 months is 180% though the stock is flat on a YoY basis.
The stock has attracted distinguished investors such as Nalanda Capital, Malabar Fund and Ashish Kacholia.
Summet Nagar of Malabar Fund described Vaibhav Global as a company with a “terrific management theme”.
He pointed out that the Company is very focussed on creating an opportunity and that what it has been able to do is “nothing short of phenomenal”.
“To be in that business in the US where there are only a handful of people, maybe four or five people who have been able to create businesses of that size despite huge barriers to entry. It is amazing,” he added.
He also pointed out that Vaibhav Global enjoys “tremendous operating leverage” and that over the last one year, its’ earnings have more than doubled.
It will also benefit from the steep depreciation in the rupee, he opined.
Vaibhav Global runs a 24×7 TV Channel called “Liquidation Channel” where all sorts of jewellery trinkets are sold to teeny-boppers across the Globe.
Everest Industries was first recommended by Porinju Veliyath in May 2017.
He explained that it is a great proxy for the ‘housing-for-all’ theme.
“We were discussing about that housing theme. Actually I was looking at two companies. One is Everest Industries. There is no hurry to buy these stocks today. You could buy it at 5-10% higher. There are enough opportunities in the Indian market. Everest Industries is not fancied. There are a few companies in this sector,” Porinju said.
Vijay Kedia also personally recommended Everest Industries to us during the joyous celebrations of Diwali 2017.
He also provided a one-pager fact sheet to enable us to understand the intricacies of Everest Industries.
Repro India is one of Vijay Kedia’s all-time favourite stocks. He is the single largest shareholder with a holding of 6.51% of the equity.
Repro has also attracted Sumeet Nagar’s Malabar India Fund, Mukul Agrawal, Nita Khera and other distinguished personalities.
Vijay Kedia has explained earlier that Repro India is likely to be a major disrupter of the publishing sector and that this will lead it to deliver multibagger gains for investors.
Next Big thing and theme is "Disruption". Anything which can be disrupted will be disrupted.
Let's find such story.
— Vijay Kedia (@VijayKedia1) December 8, 2015
@Mayank50feather yes. Rapples also but mainly one book factory is very big disruption from Repro.
— Vijay Kedia (@VijayKedia1) December 10, 2015
Sudarshan Chemical Industries
Sudarshan Chemical Industries needs no introduction to us because it is one of Vijay Kedia’s high-conviction stock picks and also the crown jewel of his portfolio.
In fact, when Edelweiss recommended a buy of the stock on the basis that there is a 40% upside, Kedia half-jokingly referred to their upside estimate as being “bearish”.
— Vijay Kedia (@VijayKedia1) July 22, 2016
It is obvious that if Vijay Kedia has recommended his own high-conviction stock picks to us, there is no reason for us to feel apprehensive about the stocks’ prospects. We can also confidently add these stocks to our own portfolios and wait for the multibagger gains to gush in!