The Teji Mandi Flagship portfolio delivered an annual CAGR of 62.89%. While the Teji Mandi Multiplier portfolio delivered an annual CAGR of 86.09%. Despite the noise like rising Omicron cases and Fed Reserve’s tapering etc., we still believe the Indian market is in the sort of a structural bull run.
Here’s a quick look at 6 best-performing stocks in 2021 from the Teji Mandi portfolio:
Tata Power (Return: 85.54%)
Entry Date: 19th July 2021 Entry Price: Rs 124.15
Exit Date: 21st Oct 2021 Exit Price: Rs 230.35
Reason to Enter:
Tata Power’s revenue stood at Rs 9,831 crore, up 47% as compared to Rs 6,671 crore last year, during the quarter ended June 2021. Profit after exceptional items was up 74% at Rs 466 crore on a YoY basis.
All the existing generation, distribution and transmission business units of Tata Power have reported a robust performance despite the challenges presented by the pandemic.
Reason to Exit:
Tata Power has run its course in terms of the valuation after the sharp uptick in the stock prices led by higher coal prices and a potential divestment of renewable portfolio.
Tata Power has been one of our top performers and has given a return of close to 85% since July 19, 2021.
CDSL (Return: 77.32%)
Entry Date: 1st Apr 2021 Entry Price: Rs 655.65
Exit Date: 26th Aug 2021 Exit Price: Rs 1162.60
Reason to Enter:
Central Depository Services Ltd (CDSL) has seen healthy growth during the quarter ended June 2021 and has reported a 98% growth in net profits on a standalone basis.
With more retail investors opening Demat accounts, CDSL has made a drastic gain in terms of the number of new accounts.
Reason to Exit:
After a recent rally in the stock, even from a 1-2 year perspective, we see a limited upside. We at Teji Mandi believe that the current valuation factors in major positives. Also, continued retail momentum and increase in pricing are key upside risks.
CDSL has been one of our top performers and has given a return of over 75% since April 1, 2021.
Max Financial Services (Return: 63.33%)
Entry Date: 5th Nov 2020 Entry Price: Rs 617
Exit Date: 11st Oct 2021 Exit Price: Rs 1007.75
Reason to Enter:
We entered Max Financial Services as we expected it to sustain healthy growth in premiums and profits through its well-diversified product mix and strong distribution channel.
Reason to Exit:
Max Life’s two-year individual APE CAGR of 12% was lower than the industry average of 18%. Max Life's APE growth continued to underperform the industry growth of private players for the third straight month.
Max Life's market share has also declined marginally to 2.36% during the same period.
Intellect Design (Return: 50%)
Entry Date: 22nd Feb 2021 Entry Price: Rs 448.85
Exit Date: 17th Aug 2021 Exit Price: Rs 672.95
Reason to Enter:
In Q3FY21, Intellect Design reported healthy revenues. It also won 6 large deals during the quarter which represented improving revenue visibility in the coming quarters.
Reason to Exit:
Intellect Design reported a mixed bag in Q1FY22. Revenue was in line with the street estimates but, EBITDA was a slight miss.
The stock has been one of our top performers and has given a return of over 50% since 22nd February 2021.
PNC Infratech (Return: 30%)
Entry Date: 4th Feb 2021 Entry Price: Rs 224.7
Exit Date: 12th Feb 2021 Exit Price: Rs 285
Reason to Enter:
We entered PNC Infratech taking into consideration the company’s proven credentials and sustained cash-generating ability. After a 2.8x scale-up in revenue over FY17-20 the company planned to add more verticals to its business.
Reason to Exit:
PNC Infratech has run its course. The long-awaited turnaround was delayed due to the second COVID-19 wave. This is likely to further delay the recovery.
Crompton Greaves Consumer Electricals (Return: 22.12%)
Entry Date: 1st June 2021 Entry Price: Rs 398.30
Exit Date: 5th Oct 2021 Exit Price: Rs 486.40
Reason to Enter:
Crompton posted its highest-ever quarterly revenue of Rs 1,522 crore, up 48% on a YoY basis. Profit for the quarter grew by more than 100% and stood at Rs 249 crore as compared to Rs 102 crore in March 2020. Q4FY21 numbers were higher than the street expectation.
Reason to Exit:
Crompton Greaves reported recovery all through the second quarter ended September 2021. However, the recovery was not that sharp as seen in FY21.
The Way Forward
There are certain issues in the short term like the Omicron variant impact, global inflation, increase in interest rates and decline in easy liquidity in the market. We at Teji Mandi believe these are temporary speed breakers to the overall bull run that we might see over the next couple of years. Despite the noise, the market is expected to do well. Going forward, it will be a very stock specific and sector-specific opportunity.
