Porinju Veliyath buys shares with a value of RS 5.5 Croore in Fratelli Vineyards via Bulk Deals

ACE investor Porinju against Veliyath bought 5 Lakh shares in Fratelli Vineyards in a few bulk deals on Thursday. The equity was purchased at a price of RS 109.70 each, which brought the deal size to RS 5.5 Crore.

Shares of Fratelli Vineyards ended today at RS 109.70 on the BSE, witnessing a jump of 5% compared to the Wednesday closing race of RS 104.50.

Fratelli Vineyards has been a market laggards, with its share price in the past 1 year nearly 72%. This year the share price has been eroded by 67%.

The share is currently being traded among the 50-day and 200-day simple advancing averages (SMAS) of RS 136 and RS 200 respectively, according to Trendlyne data.

Fratelli Vineyards is currently trading in a strongly sold -over zone with momentum indicators RSI and MFI who float nearly 20 and 7. A number under 30 is considered over sold.

The company reported a consolidated net loss of RS 5.8 crore in Q1FY25, an improved performance that successively of RS 11 crore net loss in Q4FY25 and on a year on an annual basis versus 2.7 crore net profit in Q1FY24. The total turnover of the company also fell by 80% in the quarter of June to RS 29 Crore of RS 144.2 Crore in the period of a year ago. Fratelli, which means ‘brothers’ in Italian, was started by the Secci Brothers from Italy and the Broers Sekhri and Mohite-Patil from India. According to the newest business shareholders compiled by Trendlyne, Porinju publicly has 11 shares with a net value of more than RS 222.6 Crore.

His other portfolio shares are RPSG Ventures, Orient Bell, Apollo Sindoori Hotels, Sundaram Brake Voing, MM Rubber Company, Kerala Ayurveda and Language companies.

The stock purchase becomes important and comes at a time when the government has rationalized the goods and service tax (GST), reducing it to two tax plates and an additional 40% plate on luxury and sin goods.

The GST -Council has approved a sharp rise in rates for SIN goods, so that they are moved from the earlier 28% plate to a new rate of 40%. This is part of the transition to GST 2.0, a simplified structure with two bib with only 5% and 18% rates, with the higher 40% reserved for sin and luxury items.

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