Porinju: 1, Chors: 0
In the olden days of yore, when Porinju was a strapping youngster with lightning-fast reflexes, he used to enjoy going into the den of the Chors and snatch multibagger gains from under their noses.
The Chors were no match for Porinju’s razor-sharp mind and intellect.
Porinju’s historic tweet of 28th August 2013 is testimony to his skills at outwitting the Chors.
Balaji Telefilms@31, Orient Paper@5, Orient Cement@32, KRBL@23, Mirza Intl@20 – all looking penny stocks, but not penny business. BUY
— Porinju Veliyath (@porinju) August 29, 2013
This tweet still holds the World Record for being the most profitable set of recommendations.
Each one of the stocks, which are run by managements with alleged dubious credibility, surged to give mega multibagger gains.
As of the peak of the Bull market in January 2017, there were two 10-baggers in the list, namely, Orient Paper and KRBL. The average return of the five stocks was 664%.
| Stock | Reco price (Rs) | Market Price in Jan 2017 (Rs) | Gains (%) |
| Balaji Telefilms | 31 | 89 | 176 |
| Orient Paper | 5 | 75 | 1186 |
| Orient Cement | 32 | 128 | 289 |
| KRBL | 23 | 350 | 1327 |
| Mirza Intl | 20 | 89 | 344 |
| Total | 3322 | ||
| Average | 664 | ||
In fact, KRBL (which later got embroiled in the infamous Augusta Westland Helicopter Scam and sunk like a stone) went on to give an eye-popping gain of 2500% (25-bagger) after Porinju’s recommendation.
There are several other examples of alleged Chor stocks where Porinju raked in a massive fortune.
In KNR Construction, he made a massive 10-bagger (1000%) gain in just 3 years.
10x in 3 yrs! Many more KNRs in making
Trillion Dollar opportunity in Housing & Infra coming up, Grab it! https://t.co/2h7d3HW1Nv— Porinju Veliyath (@porinju) May 9, 2017
Similar massive gains were made from Mirza International.
Nothing changed in Mirza, but stock price?
Keep investing simple, it's all about common sense! https://t.co/T4fFsJR46v— Porinju Veliyath (@porinju) May 10, 2017
‘Dabba‘ stocks like Kitex Garments, Shreyas Shipping, ZICOM, 8K Miles, Geojit, Fortis etc also delivered massive gains and enriched Porinju and his followers.
Gau Rakshak: Porinju
Blue-Chips are for Sissies, Real men invest in Chor Stocks
Naturally, Porinju was emboldened by his spectacular success with the Chor stocks.
He ridiculed investing in Blue Chip stocks.
He claimed that investing in such stocks “needs no skill” and that even a semi-literate “SSC Pass” can do it effortlessly.
Buying a famous ‘performed’ blue chip stock, with great management, clean BS and excellent growth business, doesn’t need any skill.
— Porinju Veliyath (@porinju) January 5, 2015
High-Quality BlueChip Investing has its merits & higher safety, and trust me, you don't need a fund manager or advisor/distributor for doing it – provided you have passed SSC.
— Porinju Veliyath (@porinju) June 29, 2018
He also attacked blue-chip behemoths like TCS and Infosys and mocked the analysts tracking these stocks.
It's really funny, 1000s analysts tracking and making 100s of reports, notes & comments on INFY & TCS, which may go up or down by 5-10% 🙂
— Porinju Veliyath (@porinju) October 13, 2015
5 top IT Cos: TCS, INFY, Wipro, HCL & Tech-Mah MktCap at 10,00,000 Cr. Zero return in 3 yrs; expect 2% CAGR for next 5 years if managed well
— Porinju Veliyath (@porinju) August 25, 2017
He also advised his massive legion of followers to dump ever-green FMCG blue-chips like HUL, Nestle, ITC and Colgate and instead to buy an upstart like FCEL (Future Consumer Enterprises).
No doubt, the recommendation was brilliant at that time because FCEL gave an eye-popping return of 235% in just 24 months while the Blue-Chips plodded along with a meager 22% return.
'Indian Stock' is up 235% in 2 yrs, while #BlueChips #Bookish #Academicians #BuffettFollowers gained 22%. #IndiaGrowthStory We hold FCEL https://t.co/3k6ax5pRsZ
— Porinju Veliyath (@porinju) September 7, 2017
Chors strike back with vengeance – Rip up Porinju’s PMS
In hindsight, Porinju committed the cardinal error of being complacent and letting his guard down.
Earlier, he was careful with his bets, ensuring that there is a proper risk-reward balance.
However, in the case of LEEL (for example), he got carried away and bought massive truckloads of the stock, without a care in the World.
Leel Electricals in focus@porinju Equity Intelligence India stake in Leel Electricals has been increasing
Feb 2018 7.35%
Dec 2017 5.52%
Sep 2017 4.92%@CNBCTV18Live— Nigel D'Souza (@Nigel__DSouza) February 2, 2018
Ultimately, to cut a long story short, Porinju lost all of the investment that he made in LEEL.
He accused the promoters of siphoning off funds and committing “daylight robbery“.
The promoters in turn accused him of “arm twisting” & “intentionally depressing” the stock price.
Don't believe that in the long term everything will be fine!
Even if Porinju likes the stock2004 – Stock was Rs. 40
2017 – Rs. 340 (Porinju buys!)
2019 – Rs. 40Porinju on why he bought this stock
Bought more and owned 8% of the co
and What went wrong!https://t.co/UMgyl37wFQ— Nagpal Manoj (@NagpalManoj) January 12, 2019
Leel Electricals feels that well-known investor Porinju Veliyath is intentionally deflating the company's stock & wants SEBI to pass a restraining order against him till the probe into alleged siphoning of funds from the company is completed. My story.https://t.co/ftVQFyeSRL
— Ashish Rukhaiyar (@ashishrukhaiyar) June 5, 2019
PMS clients stay loyal and keep the faith
Porinju’s PMS, Equity Intelligence, has borne the brunt of the bad bets.
Apart from LEEL, his other mega bets like KAYA, Va Tech Wabag, GVK Power etc have also failed to fire due to the prevalent Bear market.
However, the heartening aspect is that a large number of clients are still invested in the PMS.
According to a SEBI report of 30th September 2019, the PMS has Rs. 886 crore under management.
Of this 1680 resident individuals have contributed Rs. 606 crore while 658 non-resident individuals have contributed Rs. 281 crore.
At the peak of the Bull market, the PMS had an AUM of nearly 1300 crore.
Chors will never transform. Only companies with Integrity will survive
Porinju had earlier conceded that his strategy has backfired and that the chors easily find loopholes.
A Rule-Based Economy cannot be built overnight! Change is a painful and time-consuming process. It is true that many chor promoters still find loopholes during the transition period.
— Porinju Veliyath (@porinju) June 28, 2018
He now appears to have conceded defeat against the machinations of the chors.
“Most chors never transform!” he exclaimed.
“Trust me, I have burned my fingers than anyone else betting on #ChangingIndia theme,” he said.
He added that the Chors will “perish in the ongoing "Historic Detoxification Drive" of Corporate India” and that “Only companies with Integrity would survive & emerge as winners“.
Most chors never transform!
Trust me, I have burned my fingers than anyone else betting on #ChangingIndia theme?
They will perish in the ongoing "Historic Detoxification Drive" of Corporate India. Only companies with Integrity – small or large would survive & emerge as winners.— Porinju Veliyath (@porinju) October 5, 2019
It is explicit from the statement that Porinju has now washed his hands off chor stocks and will invest only in companies with integrity.
Porinju’s declaration was welcomed by his followers, all of whom heaved a sigh of relief.
Sir, that means corporate governance and good management should be of utmost priority when investing. Examples being Bajaj Finance, HDFC group. These sort of companies are perfect for long term investing.
— Satpal Rainu (@RainuSatpal) October 5, 2019
That's how it ought to be. You can't expect a management without integrity to prosper in the long run.
— Anuraag Bavaria (@AnuragBavaria) October 5, 2019
Even Basant Maheshwari, who is a stickler for quality and who has been warning us against investing in “chakri” stocks, welcomed the admission by Porinju.
“Wow. Finally !!!,” Basant exclaimed, with a big smile on his face.
Wow. Finally !!! ? https://t.co/we2cC3idkz
— Basant Maheshwari (@BMTheEquityDesk) October 5, 2019
Old habits die hard?
We will have to keep a hawk eye on Porinju to see whether he has really bid goodbye to chor stocks or it is just a passing phase.
A few days ago, there was furore over news that he bought Manpasand Beverages, a junk stock, in a bulk deal.
Manpasand is accused of several deadly irregularities such as GST Fraud, Questionable Books, Invisible Real Sales etc and has squandered away investors’ wealth.
MANPASAND BEVERAGES
Just a little more than a year ago – Deloitte resigned as Co's Auditors.Guess what – Mehra Goel & Co resign now!
-Stock was at 431 when Deloitte resigned, down more than 90% now at 40!
GST Fraud, Questionable Books, Invisible Real Sales, So Much Drama! https://t.co/MZ3ziJRxrI pic.twitter.com/ioALDmDzBs
— Mangalam Maloo (@blitzkreigm) July 10, 2019
Thankfully, Porinju nipped the controversy in the bud by clarifying that his transaction in the junk stock is not a “purchase” but a trade caused either by “trading for fun, gambling, booking loss/profit, even fat fingers“.
He also advised his followers to ignore bulk deals and cautioned that penny stocks can go to zero.
Just to clarify: Equity Intelligence PMS/AIF has never bought Manpasand Bev.
Ignore bulk deals; you never know, some could be triggered while trading for fun, gambling, booking loss/profit, even fat fingers! In the current biz/mkt environment many penny stocks could go to zero.— Porinju Veliyath (@porinju) October 5, 2019
I think he got unlucky in LEEL. Also Bear market started and so other stocks like KAYA, VATech Wabag also got depressed valuations.
Otherwise it is a good track record with a lot of multibagger stocks and few losers also.
When investing such stocks, diversification is very important. Amount betted on stock cannot be more than few percent (max 5%) of portfolio size.
sad story about losses
for the investors in PMS
I am glad that PV considers ‘SSC pass’ strategy of investing in blue chips is better. May be PV didn’t clear SSC. As much as he says now that ‘Chor’ companies could never be trusted, people could also argue that never trust guys who got into ‘Chor’ companies. Those instincts will be back in no time be it Chor companies promoters or investors. I am dumbfounded that 60% of PMS is still intact. May be his investors would have written off this investment and not bothered to come out.
In the first place, it is shockingly surprising that how openly, brazenly and daringly PJ promoted about the chor companies. And it is a pity on the investors who were trapped in these chor companies based upon comments and actions by PJ – of course based upon his PMS investors’ money and not his money.
Secondly, even the earlier (from 2014 to 2018) track record of making good money on his PMS investments by investment in these chor companies was not because of his any analytical skill or any other skill but rather since the market was extremely euphoric in those days because of BJP coming to power and lots of high expectation built around those themes, therefore the entire market went up and of course the chor companies also went up. But this hardly confirms the investment and analytical skill of PJ.
I always knew he was swimming nacked and will be exposed when tide will turn but sorry for those small investors who were carried away with Kachra Stocks.
A totally misdirected and over the top strategy which really destroyed PMS investors wealth by Porinju. He learnt a sensible lesson at the cost of his high net worth clients…Alas!
In my opinion Kaya stock should be kept under your keen observation ,may not invest ,because once it declares even a miniscule profit the price will shoot through the sky like a ROCKET, last week an entity bought about 13000 shares , that investment can not be without any rationale .god bless all .
I don’t understand why Kaya is dragged into the discussion. Every stock is sold and bought in millions each day. Is 13000 shares of Kaya a big deal?. It is funny some one goes tangential and whisper irrelevant data.