Ace investors, Dolly Khanna and Rajiv Khanna are known for spotting multibaggers. One such small-cap Asian Granito, picked by Rajiv Khanna, who invests in the name of his wife Dolly, has more than doubled since January.
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.