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Porinju Veliyath Buys Globus Spirits

As per NSE bulk data on 24th November 2015, Our Master Portfolio Member Porinju Veliyath has bought a small cap breweries and distilleries company named Globus Spirits.  According to NSE data, daughter of Porinju Veliyath, Ms. Shilpa Porinju Veliyath scooped out 155000 shares of Globus Spirits @Rs. 66.30. The stock hit upper circuit of 20%, after the news. Along with Porinju, Rajasthan Global Securities also bagged 321000 shares at a rate of Rs 65.82. 

Back in 1994, Globus Spirits started its humble operations with a distillery in Samalkha, Haryana having an installed annual capacity of 14.4 million bulk litres. After pioneering grain based distillation in India in 2001, annual production has now crossed 84 million bulk litres across three distilleries, with a captive bottling of over 18 million cases per annum, making the company amongst the largest grain based distillers and bottlers in the country.

Globus Spirits  expects its EBITDA margins to grow to 10 percent from 8.5 percent in FY16 with its capacity utilization to be well over 80%. In an interview to CNBC-TV18 in May 2015, Shekhar Swarup, Executive Director (ED) of Globus Spirits said the company has seen a 22 percent growth in its manufacturing business. He attributes this growth to the price increase in consumer space and inclusion of more value added products.

  • Globus Spirits cater to four important segments of the alcohol industry – Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), IMFL Bottling and Bulk Alcohol.
  • Collaborations with Jagatjit Industries Ltd and ABD Ltd for supply of bulk alcohol and contract bottling of their brands
  • Established relations with the largest brands liquor in India for supply of bulk alcohol.

From the mutual funds side, SBI Emerging Busi (G) is holding 1,627,112 shares of Globus Spirits and SBI Emerging Businesses -Direct (G) is holding 126,848 shares. We are expecting some short term momentum in this stock along with its peers.

3 thoughts on “Porinju Veliyath Buys Globus Spirits”

  1. Remember one thing. They will always tell you after they have bought. But they will never tell you about their exit plan, not even after they have done so. They want the share to hit upper circuit after they have bought. Once they exit they have no interest to let others know.

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