Vijay Kedia’s Stock Pick Gives Hefty Gains Of 128% (In 8M) But He Is Still Buying It Aggressively

In his interview to Nikunj Dalmia of ET, Vijay Kedia candidly disclosed (@17.00) that Repro India is one of his favourite stocks. He pointed out that Repro is a company with a long track record (50 to 60 years) and that it has good management and board of directors. He emphasized that Repro’s board comprised of eminent personalities like JJ Irani, Alyque Padamsee, M. S. Ramadorai. “I like the business, the company is well-placed” Kedia added in his earthy manner.

Vijay Kedia also pointed out that Repro is engaged in the unique business product called “Rapples” by which it converts school textbooks into digital form. “There is no competition for this business in India” he added.

Well, Kedia bought 398,709 shares on 21st May 2014 at Rs. 174 per share. Today, just eight months later, the stock is at Rs. 400, meaning that gains of 128% are on the table.

The best part is that Vijay Kedia is still buying aggressively. On 18th February 2015, he stormed the counter and scooped up a further lot of 106,379 shares at Rs. 402 per share.

This is a clear indication that Vijay Kedia does not consider Repro to be overvalued and he believes that it has a lot more steam in it.

If you want to learn about Repro’s fundamentals, there are two concise research reports. One is by ICICI-Direct dated 17th September 2014 and the other is by SPA Research dated 18th November 2014. Both reports project Repro as a great buy owing to its strong clientele, high end technologies, focus towards high growth education sector and completion of the planned capex. Repro’s is said to be well placed to register +27% earnings CAGR over FY14-17E.

Of course, the target price promised in the research reports has long come and gone. There is no update available as of date.