Porinju Buys Archies 2 Lakh shares on 20 July 2015

Porinju Veliyath bough 2 Lakh shares of Archies on 20 July 2015.

This company is betting big on ecommerce business ... It has opened its website for gifts.. This is a unique website and one stop shop for all gifts requirements.. Gifts for Anniversary, birthdays, retirement, new joining, Valentines day, Friendship day, Mothers day, fathers day, marriage, romance and for every other occassion.

When all other ecommerce business are trading at a huge valuation this company looks very cheap.. and could easily turn into multibagger like intrasoft, izmo etc.

In case of Target , if we see the style of Porinju then he invests only in those shares which can at the minimum double in 2 months.... recent examples are Palred, V2 Retail, Izmo, Vadilal, etc...

So we can expect minimum Rs 60 in 2 months for Archies as well.

Please do your own research before investing as I am not a qualifies person to advice on investing.

 

How do you find that he bought...

 

Hi Shrenuj, Please check the NSE and BSE bulk deals data for 20 july 2015. YOu will find his name in a bulk deal of Archies... Sunny Porinju Veliyath

 

I believe Archies was a screaming buy but we all were ignoring it but once Porinju bought it came into limelight. Archies is already a top brand in expressions business. Its only problem was limited number of stores and heavy stores cost. Now with focus on online sales the number of stores is no more a limitation on reach and cost of stores is zero. With the new startegy of online sales it can easily expand its margins by 5 to 6 times in comparision to current margins from store based sales and also the sales could easily double i a year and thereafter a healthy compounding of 20% can easily be achieved. I believe that a price of 150 for archies although looks unrealistic at this moment but with a 1 year view and if the margin and sales projection materialises then this price target is quite cheap.... lets see how much Porinju is going to make in Archies in coming 1 year...

 

archies has a very strong resistance of 32-36, but if it closes above 32.5 for two days then it it should break 36 and move towards next resistance of 45-48..which is a very strong resistance...if its able to break it then the next upmove should be very fast

 

Q1'16 SALES 7.6% UP, 41.24CR VS 38.23 CR.
Company is virtually debt free.- Stock is trading at 0.85 times its book value.
Stock P/E: 19.65 VS Inds PE 16.21.Price to book value: 0.85.
3 Years sales growth1.47%.
3 Years profit growth: -21.69%

 

What price did he buy at. It seems that the stock was around Rs.17 not too long before july 22 and its already nearly doubled.

 

He bought at 23-24

 

He bought it at INR 28.23

 

Friends look at intrasoft tech CMP 534 from ecoom sector - intrasoft tech is a proxy for big ecommerce sites like Amazon, Amazon-Canada, EBay, Sears, Rakuten,new egg , Let’s Buy and jet dot com and entry in india next year . 1000 looks easy to me . very much bullish on intrasoft .