13th Jun 2018 | 14:47 PM IST

The Worst Mistakes Made By Porinju Veliyath's Ambit Capital

Admitting its blunders in the last 12 months, research and brokerage firm Ambit Capital has come out with a latest report which includes names such as Radhakrishnan Damani-led Avenue Supermarts, Jubilant Foodworks and Bajaj Finance.

Shares of Avenue Supermarts, which runs the D-Mart chain closed at Rs 1,606.1, up by more than 0.7% this afternoon.

Admitting its bloopers in the last 12 months, research and brokerage firm Ambit Capital has come out with a latest report which includes names such as Radhakrishnan Damani-led Avenue Supermarts, Jubilant Foodworks and Bajaj Finance. Notably, the firm had a ‘sell call’ on the shares of D-Mart. The shares crossed the Rs 1 lakh crore market capitalisation yesterday, multiplying investor wealth by more than 5 times in the last 15 months.

“D-Mart and the missed bus to India’s best grocery retailer: Despite the best pre-IPO research (management said so too!), we initiated with a SELL; the stock is up 35 per cent since then,� Ambit Capital said in the note. Shares of Avenue Supermarts, which runs the D-Mart chain closed at Rs 1,606.1, up by more than 0.7% this afternoon. Apart from D-Mart prominent stocks such as Bajaj Finance and Jubilant Foodworks also form part of the list.

“Bajaj Finance and our refusal to learn: It has delivered a 4-year CAGR (compounded annual growth rate) of 70 percent; we’re sellers throughout. Growth at the cost of asset quality thesis is yet to play out,� said the firm. Notably, Bajaj Finance shares have risen by more than 150% in the last one year, and closed at Rs 2,263 on BSE this afternoon.

Another stellar performer in the last 12 months has been Jubilant Foodworks- India exclusive franchisee of Domino’s Pizza. “Jubilant Foodworks and the lowest target price on the street: Stellar same store growth (SSG) growth and margin expansion. The stock gained 175% in 12 months. Confession: It is the best performing stock in our coverage,� Ambit Capital said in the release.

The firm has got many buy calls wrong too. Featuring in the list of ‘buys’ gone wrong are the shares of Tata Power, VA Tech Wabag and PI Industries. “VA Tech Wabag, DB Corp and Greaves Cotton: Stocks that we love that no one else cares about. Each is down more than 20%,� Ambit Capital said in the note. Notably, ace investor Porinju Veliyath had recently pointed out that Va Tech Wabag looks attractive.

Now Follow Porinju Veliyath's Latest Portfolio, Holdings And Track his Picks With Us. To Know His Latest Stock Picks Read Porinju Veliyath’s Latest Portfolio, Holdings, And Picks March 2019

 

ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells...
FULL BIO

LEAVE A COMMENT

RECOMMENDED READING

Markets On A Buffer Before Budget, Expect a Rangebound Movement

Our Analysis As discussed in our earlier weekly, the benchmark indices took a breather, however, strong action was seen in the broader market. By the last weekend, it was evident
Read More>>

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and
Read More>>

Expect A Broader Rally Than Just An Uptrend Ahead

Our Analysis As mentioned in earlier weekly, Nifty has touched its magic figure of 12345 this week. Though it was not a straight uptrend, the market has filled a gap made earlier
Read More>>

Equity Intelligence: Latest Portfolio, Fees, Investment Strategy – Jan 2020

Equity intelligence is the SEBI registered portfolio manager, and fund management firm promoted by India’s guru investor Porinju Veliyath. Equity intelligence ranks among India’s best portfolio management service providers as its promoter.
Read More>>

Rakesh Jhunjhunwala’s Latest Portfolio, Top Holdings, News Jan 2020

Rakesh Jhunjhunwala is India’s billionaire investor even known as Indian warren buffet. Rakesh Jhujhunwala is one of the most respected guru investors in India. And investor from all the classes tries to follow him to learn the technique of
Read More>>