Ace investors, Dolly Khanna and Rajiv Khanna are known for spotting multibaggers. One such small-cap Asian Granito, picked by the couple has more than doubled since January. But, it’s not too late to buy the shares, as the small-cap scrip remains a top pick for global firm Edelweiss. Dolly Khanna held more 1.1% stake in the company as on June 30th 2017. He held 1.06% as at the end of march 2017, implying a 0.04% increase in stake in the Apr-June quarter, according to company filings.
Asian Granito shares were trading at Rs 483.2, up by more than 2% since the previous close. Edelweiss has a buy call on the shares with a target of Rs 640, implying an upside of more than 32% from the current market prices. Notably, the shares have returned more than 118% in the year so far, as compared to BSE Small cap returns of 36% in the same period. “The key drivers that will spur AGL’s surge are: 1) rising capacity; 2) focused vertical for value-added products; 3) aggressive launch of new products; 4) expanding network; and 5) demand recovery. These, we believe, will boost the company’s profitability in coming years, which is likely to lead to re-rating of valuation multiple. We initiate coverage on the stock with ‘BUY’ recommendation and target price of INR 640 based on 25x FY19E earnings,” Edelweiss said in a recent report.
Angel Broking has picked the fourth-largest tile manufacturer as a top buy for this ‘Diwali.’ “We expect AGIL to report a net revenue CAGR of ~9.9% to ~`1,286cr and net profit CAGR of ~23% to `59cr over FY2017-19E. On the EV/Sales, AGIL is trading at 1.2x compared to 3.2x of Kajaria Ceramics.We have a buy rating on the stock,” said Angel Broking in its report. The research and brokerage firm has a target price of Rs 570 on the shares.
Notably, PPAP Automotive, another small-cap stock is Dolly Khanna’s portfolio has posted staggering 136% returns in the year so far. BSE data showed that investor Dolly Khanna owned 1,53,362 shares, or 1.10 per cent stake, in the company as of June end, 2017.