272% profits from Hitachi investment…


The summer in 2014 was hotter than it was in the previous years. Air conditioner sales peaked & Hitachi Home Solutions, one of the leaders in this segment, came into our portfolio following the consumer durable growth story in July 2014. We identified this company when the stock was at 314.00.

The company continued its robust results in the September 2014 Quarter, which helped us increase our exposure in this company. We reached our maximum permissible 3% exposure when the stock was priced at 900.


Today there is an announcement that this company is to be acquired by Johnson Controls, a global leader in HVAC Equipments. Following this news, Hitachi stock has closed at Rs. 1169.00 a share today.

As of 22nd January 2015, the net gain on this stock from its first investment is 272% in 6 months. An annualized return in this business is 528.65%. This stock is not going to stop its run and we are likely to hold till it gets exhausted.