A few days ago, I jokingly said that the best way to get amused is to view the youtube videos of the great carnage of 2008. It is chilling the way the stock prices effortlessly melt into nothingness before our very eyes.
Today was a replay of that horror day of 2008. The day started normally. However, suddenly, without any warning or provocation, the stock prices plunged. By the EOD, the Sensex had lost 1625 points (5.94%) while the Nifty lost 491 points (5.02%). The CNX Midcap lost a whopping 8.77%. Several stocks like Ricoh, Wockhardt, OnMobile Global, Pokarna, Tata Elxsi, Tasty Bite, Meghmani etc lost upto 20%+ of their value. Even the blue chip large cap stocks were not spared.
What caused the sudden crash is a big mystery. According to experts, fear appears to have suddenly gripped global investors that the devaluation of the Yuan by China will send the entire Global economy into a tailspin.
Worse, the crises is likely to exacerbate in the foreseeable future was the grim prognosis of the experts.
Now, the astonishing part is that while most investors (including me) were cowering in fright at the savage and merciless destruction of wealth, two ace stock pickers were fearlessly roaming around Dalal Street, their pockets bulging with cash, looking for bargains to buy.
Sanjoy Bhattacharyya, the doyen amongst value investors, has a fearless demeanour at all times. In his long and distinguished career as an investor and stock picker, he has witnessed several such crashes and lived to tell the tale.
His Ocean Dial Gateway to India Fund bought 924,034 shares of Gujarat Heavy Chemicals at Rs. 115.87, making an investment of Rs. 10.70 crore.
Why Sanjoy Bhattacharyya preferred GHCL over all the other stocks in the market is a big mystery that will have to be solved on another day.
Porinju Veliyath is a known maverick. He has an unorthodox and independent mind. He buys stocks that others shun. He also has no sense of fear. On an earlier occasion, when the Nifty had crashed, Porinju jokingly remarked that the Nifty had reached a botton “for decades to come”. Even today, while his followers were quivering in fear, Porinju boosted their morale by tweeting “I have been bullish on Value Investing in Indian equities; the panic sell-off simply made it more attractive!”
Porinju is convinced that Jubilant Industries, which presently has a market cap of Rs. 272 crore, is worth not less that Rs. 500-600 crore. So, he constantly loiters around the counter, looking for opportunities to buy the stock.
Today, when the stock plunged 10%, Porinju got his chance. He scooped up 100,000 shares at Rs. 238.39 each, making a hefty investment of Rs. 2.38 crore. The investment was for Equity Intelligence, his PMS.
Interestingly, this is the fourth time in the past few months that Porinju has raided the Jubilant Industries counter. His first foray was on 05.05.2015 when he bought 60,000 shares at Rs. 100.96 each. Then, on 13.05.2015, he bought another lot of 60,000 shares at Rs. 169.97 each. On 20.08.2015, he bought yet another 64,000 shares at Rs. 240.28 each. Today’s foray is the fourth one.
Porinju’s aggressive buying tells you how bullish he is about Jubilant Industries.
We must also make an honourable mention of the Malabar India Fund which bought 45,505 shares of Indian Terrain Fashions Ltd at Rs. 600.45 each, making an investment of Rs. 2.73 crore. Malabar India is a regular at the Indian Terrain Counter. They bought a chunk in January 2015 and hold 248,535 shares as of 30.06.2015. Indian Terrain has also attracted the interest of Vijay Kedia and Prof. Shivanand Mankekar. Their present shareholding in the Company is not known.
Now, time will tell whether these braveheart stock pickers will be rewarded for their adventurous streak or not!