“After some soul searching, the team presents the worst of its buy and sell ideas over the past 12 months,” Ambit’s Institutional Equities said in the report.
Those looking at striking it big with every trade should take note heart from a recent Ambit report which list its worst bets in the last one year.
“After some soul searching, the team presents the worst of its buy and sell ideas over the past 12 months,” Ambit’s Institutional Equities said in the report. Appended below is the list of company-specific recommendations:
Ambit’s worst buys for the last 12 months:
Tata Power & Ambit’s unrequited love: The investment bank has been a big buyers in the stock for over 5 years, but the stock has been flat throughout. People look for earnings stability, while Ambit was looking for stock price stability!
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Dish TV & the perennial wait for ARPU increase! Ambit initiated recommendation at Rs75 in March 2016 which has only proven to be a good resistance! Free Dish played spoilsport.
India’s oil marketing companies & Ambit’s resolute faith in them despite limited ability to predict crude, currency or government behavior. Stocks are down over 25 percent from peaks.
VA Tech Wabag, DB Corp, and Greaves Cotton: Stocks that Ambit loved, no one else cared about! Most of the stocks are down over 20 percent.
Bharat Electronics and Ambit’s continuous upgrades even at peak multiples on peak earnings. The stock is down over 40 percent from its peak.
The agro-chemical cycle turn that never came: Ambit predicted it was “just around the corner” for 2 years now. The biggest bet – PI Industries, well the stock trades flat for the year
Ambit’s worst sells for the last 12 months:
D Mart & the missed bus to India’s best grocery retailer: Despite the best pre-IPO research (management said so too!), Ambit initiated with a SELL; the stock is up 35 percent since that.
Jubilant Foodworks & the lowest target price on the street: Stellar SSG growth, along with margin expansion which led to 175 percent rally in the last 12 months. Confession: It is the best performing stock in our coverage!
Bajaj Finance and our refusal to learn: It has delivered a 4-year CAGR of 70 percent and Ambit is a seller throughout. Growth at the cost of asset quality thesis is yet to play out.
United Breweries & Ambit dislike for beer! Ambit loves sprits (United Spirits up >60% since initiation) but United Breweries (SELL) is also up over 50 percent. The company clearly surprised on growth.