Kshitij Anand Moneycontrol News
The small and midcap space outperformed largecaps for the last five years and the outperformance is likely to continue in the near future. Betting on the right stocks is the key to wealth creation in this space.
The media shy investor, Ashish Kacholia, who is known for his multibagger mid and small-cap picks, might help you in picking hidden gems in the mid and smallcap space.
Investors keenly eye buy or sell moves of well-known market mavens on Dalal Street to spot possible multibagger picks or stocks which can outperform the market in the near term.
Looking at Ashish Kacholia portfolio which has 19 stocks from the small and midcap space with a shareholding of more than 1 percent has more winners than losers.
14 out of 19 stocks gave positive returns so far in the year 2017 with NOCIL giving a return of more than 100 percent. Stocks which have not performed well include companies like GHCL, Ester Industries, DFM Foods, Parag Milk, and Majesco.
Smallcap theme has created a lot of wealth for investors but because this theme has already rallied a lot, investors should do due diligence before putting their hard earned money in these stocks.
The approach of investing towards small to midcap in a scenario where the market is trading at record highs should be based on core fundamentals and not momentum in the stocks.
Investors might have to do their own research because most of the stocks might not be covered by most brokerage firms or the broader analyst community; hence, the only way to spot a multibagger is by doing your own research.
Key parameters to look at would be the order-book position, debt on books, quarterly revenue growth, product pipeline, demand scenario, management outlook etc. among others.
It makes sense for investors to invest in sectors which might not be favourite among other market participants. Kacholia has set his sights on the packaging sector, specialty chemicals, cable, power, manufacturing, dairy, and pipes etc. among others.
June quarter additions and exclusions:
In the June quarter, Kacholia added Mold- Tek Packaging and Time Technoplast to his portfolio. There are two more stocks which got added in his portfolio – Pokarna as well as Vishnu Chemicals.
Kacholia raised stake in chemical manufacturing company NOCIL to 3.13 percent from 2.82 percent earlier and KEI Industries to 2.32 percent from 1.82 percent recorded in March. Lokesh Machine also saw considerable addition up from 1.17 percent in March quarter to 5.14 percent.
Shreyas Shipping was the only stock where he sold a sizeable portion, cutting stake to 1.9 percent for the quarter ended June from 2.3 percent recorded for the quarter ended March.
He exited from Vadilal Industries, Zen Technology, Vivimed Lab, and UFO Moviez.
Disclaimer: The above report is compiled by inputs from Capitaline database. The views and investment tips expressed in this section is only for information and not a recommendation from the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.
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