5. Top 'Multibagger' script from here this stock flies, invest if you are wise: EDELWEISS

Top 'Multibagger' from here this stock flies, invest if you are wise: EDELWEISS

CMP: 135 Target: 182

Reasons:

1.Fundamentals: The firm has five major businesses: capital markets, credit, asset management, life insurance, and commodities. Its main focus is on credit. specifically mortgages for housing and loans for agriculture. The firm has 248 offices in 128 cities, including 8 offices outside ofIndia. The firm has a client base of 630,000 and employee strength of 6,227 .It also has a strong network of more than 4,700 sub-brokers and authorised persons.

The borrowing pattern has massively changed in our country. Earlier people used to stick to corporate loans. But common man has started resorting to car loans, education loans and housing loans. And the outburst is too much to be handled by PSUs and traditional banking institutes. The space for NBFC is HUGE. Plus Edelweiss will soon be getting it's own Banking License.

2. Management: Rashes Shah the CEO of this group is a canine. He spares no opportunity. He graduated from KC college later did a Diploma in IIFT to create a base for getting in into IIm Ahemdabad, where he created a strong alumnus base with the likes of Reddif, MakeMyTrip (His initial clients). Thereafter he joined ICICI and Prime Securities where he widened the base and partnered up with Venkat Ramaswamy to create Edelweiss. His managerial skills are widely praised and they are worth all the praise.

3. Shareholding: The shareholding pattern has currently undergone a lot of change. Major shareholder include bigwigs like Rk Damani, Rakesh Jhunjhunwala, Dolly Khanna, Nemish Shah. These people grace the board meetings. With such people on the board there are no loose ends.

There was a major block deal on 10th March wherein Rashes, Jhunjhunwala and Goldman Sachs procured 7% of the company. That's huge!

(Look at the volume chart below)

4. Banking initiation:

It is not confirmed yet but it is sure that they are venturing into Banking. They will get the License. And with such an elegant management and foresight they will surely be trailing HDFC (1375 now). Once they procure the License there is no looking back untill atleast 400–500 Rs. There will be a lot of frenzy then.

Lastly, their Mutual Fund, IPO and Buy back mechanism are also working quite well.

2017 will be solely be dominated by Edelweiss.
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