Two days ago, I reported on how Prof. Sanjay Bakshi and Ashish Kacholia have taken home spectacular gains of 300% (in less than one year) from their fantastic stock pick, Kitex Garments.
The good news continues today as well because the stock surged another 20% today to rest at Rs. 790.
Amongst the other stalwarts who spotted the potential of Kitex Garments, Ravi Dharamshi of ValueQuest deserves to be singled out for praise. In an interview given in November 2014 (when Kitex was quoting at Rs. 490), Ravi Dharamshi recommended a buy of Kitex and promised that it would give “fantastic returns”. He gave detailed reasons in support of his call. “We have lots of conviction and belief in promoter Mr. Sabu Jacob and he knows his game better than anybody else and he is very confident of achieving that” Ravi Dharamshi said.
Vikas Sethi of Finmart was also very direct in his recommendation. “Kitex Garments is a Page Industries in the making” he declared with immense confidence in his voice.
Motilal Oswal also got it right. In their ‘Initiating Coverage’ report issued in September 2014, Motilal Oswal recommended a buy on the basis that Kitex Garments has an “unique business model” and that there are “promising times ahead”. Motilal’s target price of Rs. 615 has long been breached by Kitex.
At this stage, we must note that if Kitex Garments is indeed to be the next Page Industries, then it has a long way to go even from here. Kitex has a market cap of Rs. 3,700 crore while Page Industries has a market cap of Rs. 15,600 crore.
So, maybe, one can look to starting a SIP in the stock even now.
Motilal Oswal has issued an update dated 6th April 2015, recommending a buy with a target price of Rs. 850.
GEPL has also recommended a buy though it has listed the merger of Kitex Garments and Kitex Childrenswear (an unlisted entity) as a “key risk”. It points out that the swap ratio pf the merger is unknown and that it can lead to “substantial equity dilution” in Kitex Garments, thereby dragging the EPS lower and the stretching the valuations higher.
The Investor come out and so late. At 240 levels we new it is the next page Industries.
well KITEX will command better valuations than PAGE INDUSTRIES, KITEX GARMENTS is the no1 enitity in the world by 2017 in kids wear. so see valuations soar ,KITEX set to double in a month even current price is super attractive,pe 110 or so in coming days
I am really surprised…the company came out with results in less than a week of financial year ending when there were 2 holidays in between ..
@Bholu..even I got the same doubt. Here is something which surprised me, even further. The qtr ending 31/3/15 is already audited and so is 31/3/15 end full FY. Hmm…here is another convoluted audit remark…quarter ending 31/12/14 is ‘unaudited’ but the year ending 31/3/2015 is already audited. Isn’t amazing?
yea, kitex is the no1 in 2017, indians get afraid of perfection sometimes, only laggards are accepted by shareholders , that really surprises me! i ask you if something is wrong in producing results on time?
Hello
I am relatively new to investment. I have been seeing kitex for past 1 month but did not invest. Now it ran up too much. What is the best entry point for kitex from the current level.
sriram, yes small dips is a big buy at current price. i see fii’s and mutual funds coming in.hold this for long term and enjoy solid profits.i see this at 3000rs with a p/e higher than page industries.
shareholding pattern will appear this week, last qtr FII had increased by 2.5%, will be interesting to see this qtr
@ranga…given the nature of business and the retail sector in which the company operates, accounting in less than a week after financial year end and declaring results seemed a bit surprising…I just raised my doubt..obviously, this is no advice for buying or selling
bholu, if at all an increase in FII holding this qtr- will spike the share price beyond 1000rs IMHO.
Investors in this are now left standing in their undies . undies from page . multibager becomes beggar .
look at the share price now…. all these stockpickers are appearing as fools.