Yesterday, I reported that Mohnish Pabrai’s “The Pabrai Investment Fund II LLP” had bought 26,64,000 shares of Rain Industries at Rs. 34.52 each, laying out an investment of Rs. 9.20 crore.
Well, the good news continues today. Mohnish again stormed the Rain Industries counter and picked up another chunk of 51,14,568 shares at Rs. 35.44 each for his “Pabrai Investment Fund 3 Ltd”. His investment today is Rs. 18.12 crore.
Mohnish’s total investment in Rain Industries stands at Rs. 27.32 crore.
It is quite obvious that Mohnish is a firm believer in the investment thesis for Rain Industries projected by Parry Pasricha at Beyond Proxy. Parry Pasricha has foreseen a 4x gain from Rain Industries in the best case scenario and an 80% gain in the worst case scenario.
So, Rain Industries is the ideal “Heads I Win, Tails I don’t lose much” sort of stock that Mohnish Pabrai loves to invest in.
Whether Rain Industries will live up to Mohnish’s lofty aspirations and give him the much desired 4x gains requires to be seen.
Arjun sir, is it okay 2 buy at this price ?? I want to put 25000 rupees in this share. Can you please tell me if I can put the money now or wait till the price goes up.
Arjun,
Seriously man ! Do some research on Vardhman Acrylics Ltd and Munjal Showa Ltd.
Forget about the junk stocks.
Can you throw some light on Vardhman ? the group does not enjoy a very good reputation if I am not wrong ? as far as Munjal Showa is concerned it is highly dependent on one company and that too primarily a domestic manufacturer, I really do not see how it can be an out performer, more so when Hero Motocorp itself may face dwindling sales ? also it has already given good returns
I agree with Bholu on Munjal Showa. I entered and without much success exited. The company solely depends on Hero Motocorp and Hero is not doing well. It is not advisable to get into Munjal Showa.
Munjal Showa:
70 percent in this quarter is from Hero and around 10 percent is from Maruti balance from Honda cars and Honda scooters.
Vardhman Acrylics:
Vardhman, a leading textiles group in India ventured into manufacture of Acrylic Fiber & Acrylic Tow in 1999. A modern plant with technology from Japan Exlan Co. Ltd, Japan, a company in forefront of innovation in this field was set-up initially as a joint venture with Japan Exlan Co. and Marubeni Corporation, Japan in the state of Gujarat in western India. Mr. SP Oswal is the chairman. Fundamentals look good. Suitable for long term investors.
If Rain Commodities is such a strong buy then why are the promoters not buying? Infact in recent times, a major FII – CIR International SA has sold most of its shares.
Who said promoters are not buying, the Reddy family picked up at 29.45 and then at 31 and then at 32 in open market, you dont see them as it is not in bulk deals, I guess.
Most of the fraud companies are emerged from Hyd and AP. It needs a lot of guts to invest when everything about the company sounds negative. Mohnish has a luxury of losing his entire capital which we are not. Even if Rain Industries turns good next quarter, am not going invest a single rupee on this counter. By the way, he must have lost good chunk of capital on J&K Bank.
Krish,
Interestingly if you go by facts maximum fraudster companies are from Gujarat & Punjab.
Regards
Bhs
RAYALASEEMA GROUP
RAYALASEEMA GROUP
TGV
I am not convinced by the numbers, he also bought south indian bank at 32 as of today it is available at 24.84 rupees.
May be some one should buy sib, at 24 and a dividend of 2.85% and a P/e of 9
@Bhs
we have seen /investors of 1990 have seen the great MESCO multi core co..of Rita singh .. where is it now
we have seen MS shoes .. never single day went off without that ad.. where is it now
we have seen and i have experienced cos like Shrishma chemicals Banglore, Southern Herbal,
WOW.. you guys are so informed. I have entered the stock scene only recentlt-june 27th, 2016 to be precise.Im just a single guy but yeah inthis period i have made profits-good profits. One must do research yourself and not leave it to experts. I have only one exper in the form of my banker who is also NSE registere broker. I go with it–but no blindly. Try it guys.. Nesfield Sangma, Tura Meghalaya