Yesterday, Shreyas Shipping breached the Rs. 700 mark. Exactly fourteen months ago (1st March 2014), the stock was quoting at Rs. 19. If you go a year back (1st June 2014), the stock was quoting at Rs. 38.
This means that investors in Shreyas Shipping have seen their wealth grow a mammoth 3500% (35 times) in 14 months and 1739% (17 times) in 12 months.
Ashish Kacholia is the sole major shareholder of Shreyas Shipping with a holding of 415,906 shares as of 31st March 2015. Kacholia has been steadily increasing his shares. He held 396,006 shares as of 31st December 2014. The investment is worth Rs. 29 crore at the CMP of Rs. 700.
While Ashish Kacholia chose to keep a studied silence over the monumental event, Porinju Veliyath was beside himself with joy.
Porinju took advantage of the situation to drive home his pet point on how buying stocks of lesser known companies with so-called “low reputation” can lead to mega riches if you choose your stocks well.
Porinju drew attention to an old tweet of his dated 12th November 2014 where he had said that he “loved” Shreyas Shipping “even at the current price”.
Shreyas Shipping @ 100 – up 5 times in a year; I love the stock even at current price. Have suggested many times in the past.
— Porinju Veliyath (@porinju) November 12, 2014
(Shreyas Shipping @ 100 – up 5 times in a year; I love the stock even at current price. Have suggested many times in the past.)
Interestingly, even from that date, Shreyas Shipping is up nearly 6 times (600%).
As expected, Porinju was mobbed by his legion of fans with everyone rushing to congratulate him on the great achievement. Many were delirious with joy and some even called him a “legend” for his brilliant stock picking.
The reason for the spectacular gains is because Shreyas Shipping reported very strong and impressive results for the financial year ended 31st March, 2015. The turnover surged to Rs. 545.88 crore from Rs.487.31 crore while the PAT surged to Rs.61.75 crores as against a loss of Rs.4.32 crores for the previous fiscal. This is the Company’s best ever performance till date. Shreyas attributed the spectacular performance to the consistent and strategic decisions taken by the management. Mr. S. Ramakrishnan, CMD, outlined the future plans of the company as well.
Now, the million-dollar point is that Shreyas Shipping is still a micro-cap with a market capitalisation of only Rs. 1500 crore. It has ambitious plans on the anvil. Does it have the potential to give more gains is the question on everyone’s mind.