There are some stock pickers whose recommendations deserve to be treated seriously. Neha Majithia of Microsec belongs to that hallowed club. I have already talked at length about her stellar stocks picks in my previous articles and will not repeat it here. For your ready reference, Whirlpool is her last stock pick which has given staggering gains and looks good for more.
On 1st August 2014, Neha recommended a “Strong Buy” of Lloyd Electric. Lloyd was then quoting at Rs. 123. The fact that Lloyd had already posted an incredible YOY return of 340% did not deter Neha Majithia one bit. (This clearly shows that unlike a lot of us, Neha Majithia does not suffer from the “price anchoring” bias.)
Instead, she went about her job, coolly analyzing the merits and demerits of Lloyd Electric and considering whether Lloyd was indeed a good investment.
At the end of the analysis, Neha gave 9 reasons why Lloyd Electric is a compelling buy and sent out a “strong buy” recommendation.
Well, a lot of investors do seem to have acted on Neha’s recommendation because, at the CMP of Rs. 167, the stock is up a fabulous 34% in just 26 days.
Neha’s target price for Lloyd is Rs. 205, which means more juice is left in the stock for you to feast on, if you haven’t already.
At this stage, we must note that there are two other stocks recommended by Microsec that deserve consideration. The first is Finolex Cables by Anik Das, which has also been given the coveted status of a “Strong Buy”, with a target price of Rs. 333 (72% upside). The second is Bajaj Electricals, which, according to Kushboo Jaiswal, has a target price of Rs. 405. Interestingly, ICICI-Direct has posted a target of Rs. 416 for Bajaj Electricals. The CMP is Rs. 285 and it implies that there is a potential upside of nearly 40%+ from the stock.