When Porinju Veliyath bought a truckload of Jubilant Industries’ shares on 5th May 2015, most investors turned their nose up in disgust. Jubilant had reported dismal Q4FY15 results (net loss of Rs 54.39 crore as against a net profit of Rs 75.52 crore in Q4FY14) and there was nothing investment-worthy about the stock, they thought.
Later, Porinju came on record to explain the rationale behind his investment. Porinju pointed out that Jubilant’s core business of manufacturing polymers is an “excellent” one, worth at least Rs. 500 crore. The sole reason for its woes is the recently acquired retail business which is notching up heavy losses.
Porinju speculated that the heavy losses would force Jubilant’s management to jettison the retail business, sooner or later.
“When that happens, Jubilant Industries will give multibagger gains” Porinju exclaimed, with a glint in his eye.
Today, just a few days later, in an incredible coincidence, Porinju’s gamble about what Jubilant’s management might do has turned out to be a prophetic declaration.
Jubilant issued a press release today morning stating that its wholly owned subsidiary, Jubilant Agri and Consumer Products, will transfer its retail hypermarket business including four hypermarket stores in Bengaluru to Aditya Birla Retail via a slump sale.
As expected, there is great jubilation in the Jubilant counter. The stock is locked in upper circuit at Rs. 164. It is expected that the UC will continue for the next couple of days and that the stock will coast in an upward trajectory even thereafter.
Porinju was last spotted with a big grin on his face as he was being congratulated by his vast legion of fans. Porinju stands to make a personal fortune from the stock, given that he bought it at the throwaway price of Rs. 100.
Now, what we have to see is whether Porinju’s brilliant stock picking leads him to be taken more seriously by the investor community.
Isn’t this heights of insider trading!!! Really, that’s a coincidence! and no wonder given the laxity in our security regulation – the balls of the guru to come into the open and declare that he is expecting management to sell off retail business and the same happen within weeks. Come on guys.
Clear case of sharing insider information. Indian legislation cann’t do anything to khan or politicians or to speculators. We live in different society.
If this is not insider trading, then I dont know what is..SEBI needs to take action against these kind of investors..And why are we promoting / encouraging such individuals at this forum by praising about their investing prowess..They need to be completely ignored and reported to SEBI for alleged insider trading..
crystal clear…insider trading..!!
SEBI wake up
Absolutely! I can’t believe that such brazen act of insider trading is happening so openly. What Guru? Porinju should be investigated by SEBI.
I don’t think it is the case of incredible coincidence. No one would bet on crores worth of stock on sick industry with anticipation of turnaround. Viola the buyer guess would turn out to be true within a week time. Whom are we fooling. Hope this matter would be investigated and those responsible for insider trading should be punished.
This is value investing …porinju should be ashamed.but he told in the last interview that he knows the promoter….next time whenever he tell he knows the management that means … 🙂
I do believe it could be co-incidence as management had indicated long back they want to sell off retail business.
However, I want to see how Mr porinju performs in coming times when Nifty goes down to touch 2008/2010 high.
He buys 3 stocks per week so in any case no one remembers which stocks are down 🙂
If this site does not give much space to punters like Ashwani Gujral, I fail to understand why this punter is getting so much space.
Clear case of insider trading..it’s not possible to time it to such a perfection as he did without having insider knowledge of this deal..is there a way we can reach out to SEBI to investigate this matter and find out the truth?
I think sending a email to SEBI regarding this can lead to investigation.
This guy should be arrested and put in jail for Insider trading, Arjun you should log a complaint with SEBI.
Bhs
Insider trading is rampant in Indian stock exchanges .This was a low key company, we have seen it in the case of many high profile stocks ? How many people are you putting in jails ? At least Porinju declared he was purchasing the stock.
he didnt have to declare it…it was available to public from NSE bulk data..
Are you trying to say he is a lesser crook because he disclosed his stake?
Sun – Ranbaxy, ING Kotak, even in cases of bonuses, special dividends I have seen stocks start moving sharply prior to the news coming out. Beyond that I really have no interest in Jubilant, several stocks Porinju bought have flown high, in this market we have seen stocks fly on purchases by MFIs, ace investors… ultimately it is the investors call if they want to follow somebody blindly or adopt their own strategies
This is a clear case of insider trading. There is no gambling. Porinchu buys on 05th May and the company issues a press statement on 12th May saying that they are transferring the retail business to another company. That means, the actual transaction was done before 05th May…. SEBI should look into this… This is a financial fraud
Agree with u all.no doubt inside information.
I dont know why everyone is cribbing.Atleast this chap mentioned the reason and said i am buying.And to traders who die for a 1% return daily thinking they will earn 200% return on 200 working days he provided and opportunity to earn too.
Everyone wants to know why jhujhunwala enter this stock and understand its rationale and earn too on same investment .
If the same think is done by this guy and before any happening happens he statesthe reason whats the big deal.
In a country where a person on killing 10 person via car goes scott free on bail and a person killing one via knife stays inside jail for years what big deal it will make on registering complain with sebi.
This guy is a big fish easily he will come out.He wont be bared unless he does crime big like sarda or satyam.
Right now those who didnt earn from his advice should treat one as being khatha angoor…we didnt had it hence its sour grape.
People write off everything as cool & OK in sin (stock) market. They are blindfolded to see what happened to Sanjay Dutt, Sahara Subrato, Kalmadi, Raja of Telecom, Kanimoli, Sathyam Raju and so on. It is because of public pressure, wealthy & political class are booked. Otherwise everything could have pushed under the carpet.
This guy knows what is happening inside the business. Front ran and made public later to raise the price of stock. After few days, announcement from mgmt came and the price zoomed. This is such a obvious case.
Don’t support saying that this is common across the spectrum. If clear cases are not punished, one can never dream of complicated things.
If you watch him closely about his picks, you can see that inside information is his edge/competence and he simply uses it for his advantage.
I saw his interview. what is more interesting is the moment he started talking about Orient Bell, it started zooming upwards like 10% or so. And the way he smiled when the interviewer asked him about his latest idea, it was very much evident that order was placed before the interview. amazing..
I invested in his PMS in 2006. He returned in 2009 after 30% cut in my capital.
In between kept on booking profit raking PMS fee.
Hyped case by media. Very inferior stock picks is some cases.
Also everyone should note that when he buys, he buy it in bulk so that his name will appear under bulk deals but when he is selling the stocks which made the fortune he will sell in small qty so that it wont appear in bulk deals.
And just to distract people from the sense of insider trading, he is buying some qty at current price also. So that we will believe he is a value investor.