Bhavook Tripathi deserves to be complimented. When the Supreme Court banned Endosulphen in May 2011, Excel Crop went into a free-fall and its’ the stock price plunged from Rs. 295 to Rs. 85. There was so much uncertainty that nobody wanted to touch Excel Crop with a barge pole.
Even I did not have the courage (or wisdom) to buy Excel Crop even though I was confident of its business model.
But Bhavook Tripathi was the knight in shining armour for Excel Crop. He bought a mammoth quantity of 388,691 shares, constituting about 7% of its equity, secure in the knowledge that the tide would soon turn for Excel Crop and he would get his outsize gains.
Well, that did happen. Excel Crop slowly got its act together, and at today’s CMP of Rs. 224, Bhavook Tripathi has gained a 70% return on a YOY basis. In the past three months alone, Excel Crop has gained 96%.
Today, Excel Crop surged 16% and settled at 8% on news that an expert panel had opined to the Supreme Court that the Endosulfan pesticide can be used in farms for the next two years.
This is music for Excel Crop because it is India’s largest maker of Endosulfan.
This episode highlights how if one is able to weather the storm and buy stocks that are facing a difficult situation, one can make outsize gains when the storm clears. I saw this happening in Sabero Organics and also in Hawkins Cookers.
Meanwhile, Bhavook Tripathi has been slowly lightening his load of Excel Crop. He sold a chunk of 77,000 shares on 2nd November at Rs. 226 per share. Though he left some money on the table, Bhavook Tripathi is unlikely to regret it because he still has a huge chunk of Excel Crop stock to cash in on.