A few days ago, I wildly speculated that Porinju is likely to buy Archies Ltd, the micro-cap e-com stock.
To everyone’s surprise, Porinju did just that. He casually walked up to the Archies counter on Monday, 20th July, and bought a truckload of 200,000 shares. He had no problem paying the bill of Rs. 57.66 lakhs from the Rs. 220 crore stashed under his belt.
Tata Global Beverages (TGBL), the blue chip FMCG stock from the venerable Tata stable, has been one of Porinju’s favourites for a long time. As long back as in the year 2010, Porinju revealed in one of his investment letters that TGBL was one of the core stocks in the portfolio of ‘Equity Intelligence’, his PMS.
Porinju has also been repeatedly tweeting about the virtues of TGBL to his vast legion of fans. “Tata Global Beverages@119 (Rs.7300 Cr mkt cap). genuine investors can comfortably own this company, which is worth 20,000 Cr.!” he said on 18.11.2010. He added later on 11.01.2011: “Tata Global is damn cheap at Rs.6000 Cr. I am comfortably staying invested….”. Porinju also promised a return of 50% in one year from the stock on his facebook page.
Sadly, TGBL has been immune to Porinju’s charms and overtures. Despite the raging bull market, the stock is down 12% on a YOY basis. Over a period of five years (01.07.2010), the stock is up only 15%.
However, Porinju has not given up hope that his favourite stock will live up to the lofty expectations reposed in it.
Today morning, he was at it again: “Invest in ‘Good for you’ Beverages @ 138 Focus on ‘profitable growth’ by new leadership at Tatas could be game changer! I have been buying”.
Porinju’s fascination with TGBL is quite intriguing because a few days ago, he made his contempt for the Tata group quite plain: “Shareholder wealth creation had never been an agenda with Tatas; a TCS or JLR just accidental, could happen to anyone doing too many things!”
However, he appears to have made an exception for the new leadership within the Tata group.
Anyway, now, whether Porinju and his vast legion of followers will be able to pull Tata Global Beverages out of the morass that it finds itself in will be interesting to watch.