Ace investor Porinju Veliyath’s ability to spot multibagger stocks needs no elaboration. The Kochi-based MD and CEO of Equity Intelligence India had spotted names such as Wockhardt, Orient Paper, Piramal Enterprises, Kitex Garments, Force Motors and Biocon, which have multiplied many times over from the time he picked them. Many of these stocks still form a part of his over Rs 1,000 crore portfolio. What is the ace-investor betting on this Diwali? In an interview to CNBC TV18, Porinju Veliyath revealed- Zee Media and GVK Power and Infrastructure Ltd. Both these stocks are currently trading at under Rs 50.
Zee Media Corporation Ltd
Interestingly, Zee Media shares have returned just 2% in the year so far, while the BSE small-cap index is up by more than 40% in the same period. In a recent interview to ET Now, Porinju Veliyath says that investors should look at these stocks as long-term bets, as there are certain challenges right now. “I like two mid-cap media stocks currently, Zee Media and Balaji Telefilms. Investors could explore and try to understand the business model and their relevance for the future. We hold both the stocks in our portfolio (PMS),” he had said earlier last month. In July this year, Porinju Veliyath told CNBC TV18 that he had always been bullish in the media sector. In the same conversation, he mentioned that there’s a lot of growth opportunity for smaller unlisted entities to enter the space as India is a huge market with 1,300 million people and there’s hardly any market capitalisation. Zee Media shares were trading at Rs 41.35, up by more than 4% this afternoon.
GVK Power and Infrastructure Ltd
Porinju Veliyath is extremely bullish on the infrastructure space in India, and he 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. Speaking to ET Now earlier this year, he said that the GVK Power and Infrastructure Ltd stock could have become a 1 lakh crore market capitalisation company today. The current market capitalisation of the company is around Rs 1,920 crores. Since January this year, the stock has returned 115%, while the BSE Smallcap Index is up by around 40%. While these returns may seem impressive, Porinju Veliyath expects 5- 10 times growth from select Infrastructure space over the next few years. GVK Power and Infrastructure shares were trading at Rs 12.20, up by more than 4.5% since the previous close.