Porinju Veliyath, CEO and MD of Equity Intelligence India, is bullish on the prospects of the Infrastructure space in the next 10 years. He believes that there maybe a few L&Ts in the making. L&T has a market capitalisation of more than 1,64,000 crores. Porinju believes that currently, there are at least 2-3 large companies in the sector, which have the potential to reach the 1 lakh crores market capitalisation figure in the next decade. Speaking to BTVi, he said, “ In the next 10 years, the infrastructure development in India is going to be a huge game changer. I’m looking at the next L&Ts”.
According to the expert, L&T is a very professionally managed company with huge execution capability. Porinju predicts that this sector is going to witness tremendous growth in the near future, and companies with dynamic management and proven track record are good bets.
He feels that even though there may be strained balance sheets as of now, the profitability seems to be improving in the space. In the same conversation he said, “I’m able to see atleast 3-4 large companies in the infra space at this point of time. The latest annual reports and balance sheets of these companies look attractive.”
The ace investor said that while the investors may have their reasons not to buy them, some of them will turn out to be multi-baggers. In fact, the reputed market expert believes that some of the companies which have Rs 5,000- 10,000 crores of valuations today, have the potential to grow to 1 lakh crores of market capitalisation. “Other than L&T. we are going to have at least 2 more companies with 1lakh crores valuation in the infrastructure space in the next 10 years,” predicted Porinju.
The L&T stock has outperformed the benchmark indices in year to date terms with returns of more than 31% in the year so far. The Nifty Infrastructure Index is up by 26% in the year. Notably, GVK Power & Infrastructure has registered a year to date return of 150%. The stock has a market cap of 2,054 crores as on date.