Porinju Veliyath is known for spotting small-cap multibaggers. The Kochi-based MD and CEO of Equity Intelligence India had spotted names such as Wockhardt, Orient Paper, Kitex Garments, Force Motors and Biocon, which have multiplied many times over since he spotted them. Many of these stocks still form a part of his over Rs 1,000 crore portfolio. In an interview to ET Now, Porinju Veliyath has predicted Samvat 2074 to be a comeback year for these small-cap laggards! “Two companies which I mentioned earlier also haven’t performed yet. From the railway segment, Texmaco Rail and Titagarh Wagons. One is around Rs 2,000 crore market-cap. TWL is around Rs 1,500 crore market-cap. Strong balance sheet and execution capabilities. I think investors should really watch these two companies in 2074, for reasonable gains, not multi-baggers I would say,” Porinju Veliyath said in the same interview.
Interestingly, Texmaco Rail has corrected by more than 9% in the year so far, at a time BSE Small-cap index is up by more than 41% in the same period. Similarly, Titagarh Wagons has returned just 2% since January. Porinju Veliyath revealed another small-cap laggard.
“Another stock which I have in mind is Allcargo Logistics. Nobody has been talking about this stock for a while. We have been buying this stock in PMS for sometime. The stock price is around Rs 165. There is no hurry to buy the stock. Investors should not jump in to buy at this point of time. Around Rs 4,000 crore market-cap, it’s a very large logistics company. Itsa large multi-model logistics player. I think Samvat 2074 should be a turnaround for this stock,” he told the channel.
He is extremely bullish on the infrastructure space in India, and says that there are a few L&Ts in the making. L&T has a market capitalisation of more than 1,64,000 crores. Speaking to BTVi in August, 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”. Accordingly, he has picked GVK Power & Infrastructure for his portfolio.