Porinju Veliyath has mastered the art of spotting “hidden gems” i.e. stocks which have a lot of embedded value in them but which are not given their true worth by the market for various reasons.
Ansal Buildwell is a case in point. Till a few days ago, the stock had no takers because it is in the unpopular realty sector and is backed by promoters with a so-so track record.
However, Porinju was not deterred by all the negatives that were floating around about the company. Instead, on 23rd March 2015, Porinju’s Equity Intelligence Fund bought a chunk of 55,000 shares of Ansal Buildwell Ltd at Rs. 64.25 each. He bought another chunk of 45,000 shares on 16th April 2015 at Rs. 99 per share.
Today, Ansal Buildwell closed at Rs. 108. This means that in less than four weeks since his first purchase, Porinju has raked in massive gains of 68%.
Porinju’s latest tweet suggests that Ansal Buildwell is deeply undervalued because it has assets worth Rs. 5000 crore while its enterprise value is only Rs. 100 crore.
Ansal Buildwell – Why 100 Cr EV for 5000 Cr wealth?
http://t.co/hQuXt2Qosl
— Porinju Veliyath (@porinju) April 17, 2015
(Ansal Buildwell – Why 100 Cr EV for 5000 Cr wealth?)
Porinju has drawn attention to a talk by Ansal Buildwell’s director where he pointed out that the Company has low debt (about Rs. 100 crore) and that the development potential of the land bank held by it is in excess of Rs. 10,000 crore. The director also pointed out that while Ansal’s past has been ordinary with sluggish growth in sales and profits, its future is bright because it has several ambitious plans on the anvil.
So, it does look like Porinju Veliyath has got himself yet another multi-bagger stock to add to his roster of winning stocks.
Arjun Sir
Quite interesting, “Mr Porinju” tweets here that Ansal Buildwell is deeply undervalued because it has assets worth Rs. 5000 crore while its enterprise value is only Rs. 100 crore, on what basis?
See because as per the money control mentioned here that
Name-Ansal Buildwell, Last Price-108.80, Market Cap(Rs. cr.).-80.34, Sales Turnover-90.96,Net Profit- 10.66, “Total Assets-132.31.”
which true? Please guide me,
Mr. Arjun
Thank You
I is this as nexus between stock advisory and company promotorers. Land valuations can be stretched to any limits by promoters and an ordinary investor can never able to validate. Let this company be valued by its revenue, profit, growth and demand but not by future plans. These plans require lot of capital and we are not sure whether it has such funds.
Porinju is one of the operators in stock market. He artificially drives up the price by tweeting and unsuspecting investors get trapped in duds. He may have built goodwill in early days but now he is using it to become a stock operator. See his holding off this stock next QTR and it will be nil.
http://alphaideas.in/2015/04/19/ad-create-wealth/
This explains a lot doesn’t it? 😀
It would be in order for the publishers/managers of this blog, i.e. “Rakesh-Jhunjhunwala” to come clean on this issues, like, conflict of interest by experts, including a follow-up later on as suggested by some one above.
Try to analyse it by it’s management comments. If they are having a land bank of 1000-1500 acre then it comes 1500*2.49*20=74700 katta. Normally the land price in any rural area is 120000/katta. Most of their projects are in TierI/II/III cities where land prices are much more higher. 74700*1200000=89640000000. And granting it’s marketcap their is a potential to touch at least the equivalent level of it’s land bank. Every co will trade 2x of its Total net worth. So it must have a mcap of 179280000000.
Profit is not the criteria for value investing
a profit made does not make one successful investor
ANSAL group i know for over 25 yrs
Yes i used to invest in similar scripts from 1985 to 2008 jan
Therafter the events globally made me think a lot and sat sideline and reflected..
so i will never invest in this co of cos and i donot want that profit.. too
with all regards to those who invest or disinvest
I have no vested interest
i do invest in similar cos of ROCE of not less than 15 and BY HIS GRACE doing wonderful.
I have regards for Porinju for the simple reason that he made a wealth for himself investing in stock market!!!!
he is a successful PMS manager as i see in the published returns of previous years and in the bill boards held prominently at the Kochi Intl airport depart ure terminal
jacobvacha@gmail.com