What could be the best unlock trade for the month of November?
Many of the unlock trades have played out a lot but one stock which we hold and which I am very bullish on is
and it has also moved up now. No stock is cheap in this market but I believe that VIP is very uniquely positioned and because of the fact that it has moved its entire sourcing from China to Bangladesh just before the Covid crisis and as China supplies are a big issue for many of the other companies, to that extent VIP benefits. They also get a margin benefit because of the shift to Bangladesh.
There is one category of luggage where demand has completely plummeted. Although airlines came back, luggage never came back because Covid restrictions came and went very fast. Now I believe that with clear unlocking, demand will come back strongly. For example, in the first quarter, their sales expectations were just Rs 60-70 crore. They actually did Rs 200 crore business and that surprised many people.
My view is that this company quarter on quarter will keep on surprising analysts more than in terms of the top line and the profits that they have over the next few quarters. The stock should reach at least its all time high of around Rs 700 over the next one year, which is a significant gain from here. This is one stock which we do hold in our portfolios as part of the unlock trade.
