The small-cap segment in the Indian market is considered by many as shark-infested. It is a segment that most risk-fearing investors ignore while a few navigate its murky depths with as much practiced patience as Porinju Veliyath.
One of the most followed and highly respected super investors of India when it comes to proving that smallcaps are not risky if you know what you are doing, Veliyath has a current portfolio of 16 stocks worth Rs 235 cr as per Trendlyne.com. He has built a reputation on the understated art of identifying value where others see only risk.
But something he has been doing consistently in the last few quarters is what has caught the attention of the investor circles. He has been steadily, but in small spurts, increasing his stake in two of his existing small cap holdings.
Such persistent buying by an investor like Veliyath is rarely accidental. It signals a conviction in the underlying business cycle that the current market price has yet to wake up to, suggesting a gap between perceived risk and actual value.
Let us look at these two smallcap favourites of Porinju Veliyath.
Orient Bell: Why Veliyath is Betting on the Tile Sector’s Turnaround?
Incorporated in 1977, Orient Bell Ltd is in the business of manufacturing, trading and selling of ceramic and floor tiles.
The current market cap of the company as on 27th February 2026 is Rs 444 cr. Porinju Veliyath bought a stake in the company through his holding company Equity Intelligence India Private Limited, as per the filings for the quarter ending June 2020. And this is how the holding has changed in the last few quarters.
| Quarter | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 |
| Holding % | 3.71 | 3.71 | 4.61 | 4.6 | 4.92 |
As we can see, he has steadily increased the stake in the last few quarters. The current holding as per the filings for the quarter ending December 2025 is closer to 5% worth Rs 22 cr.
Analyzing the Orient Bell Financial Landscape
Let us dive into the financials of the company to try and find out what is it that has not only kept Veliyath interested but also had him increase his holding.
The sales have seen a compounded growth of 6% from Rs 492 cr in FY20 to Rs 670 cr in FY25. For the 3 quarters of FY26 ending in December 2025, sales of Rs 477 cr were recorded.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a roller coaster ride in the past few years.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 26 | 34 | 57 | 47 | 21 | 28 |
For the 3 quarters of FY26 ending in December 2025, EBITDA of Rs 25 cr were recorded, hinting at a stronger finish to FY26.
The net profits also saw jumps and fall in the last 5 years.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit/Rs Cr | 7 | 8 | 32 | 22 | 1 | 3 |
For the 3 quarters ending in December 2025, the profits logged were over Rs 6 cr already.
The share price of Orient Bell Ltd was around Rs 235 in February 2021 and as on 27th February 2026 it was Rs 302, a jump of 29%.
Charting the 29% Climb: Orient Bell’s Five-Year Trajectory
At the current price of Rs 302, the stock is trading at a discount of over 63% from its all-time high price of Rs 831 and 14% from its 52-week high of Rs 350.
As for valuations, the company’s share is trading at a current PE of around 50x, while the industry PE currently is 35x.
A Massive Revenue Base at a Steep Discount
While a P/E of 50x might traditionally signal an overvalued stock, especially against an industry median of 35x, it could be a deceptive metric for Orient Bell. This inflated P/E is a mathematical byproduct of the depressed earnings in FY24-25. If we pivot to Price-to-Sales (P/S) which is 0.6x or EV/EBITDA which is about 15x, a different story emerges.
These ratios suggest that the market is valuing the company’s massive revenue base and operational infrastructure at a steep discount, likely what caught the eye of value-hunters like Porinju Veliyath.
Apollo Sindoori Hotels: Lean Operations Waiting Trigger a Coiled Spring?
Incorporated in 1998, Apollo Sindoori Hotels Ltd is in the business of managing food outlets at hospitals and reputed organizations. It also undertakes outdoor catering services, skilled manpower to hospitals, etc.
The U-Turn: Why Veliyath Re-entered Apollo Sindoori
With a market cap of Rs 322 cr as on 27th February 2026, Veliyath bought a 1.35% stake in the company first as per the filings for the quarter ending September 2024, once again through his holding company.
However, this holding fell below 1% (a partial or complete sell off) as per the filings for the quarter ending December 2024.
But when the filings of the quarter ending March 2025 came out, it shows that Veliyath had once again bought close to a 1.7% stake in the company. Here is how the holding has changed in the last few quarters.
| Quarter | Mar-25 | Jun-25 | Sep-25 | Dec-25 |
| Holding % | 1.67 | 2.12 | 2.31 | 2.31 |
Looking at the financials, the sales of the company jumped from Rs 193 cr in FY20 to Rs 542 cr in FY25, recording a compound growth of 23%. For the quarters of FY26 ending December 2025, the sales recorded by the company were close to Rs 450 cr.
The EBITDA saw an upward trend until FY24 and then recorded a fall in FY25.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| EBITDA/Rs Cr | 8 | 5 | 12 | 17 | 25 | 19 |
For the 3 quarters ending December 2025, the EBITDA logged by the company is Rs 21 cr already, signalling a stronger Fy26 than FY25 was.
The net profits also saw a similar trajectory.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profits/Rs Cr | 15 | 10 | 15 | 17 | 11 | 8 |
For the 3 quarters of FY26 ending December 2025, the net profits recorded by the company are close to Rs 8 cr already.
The share price of Apollo Sindoori Hotels Ltd was around Rs 560 in February 2021 and as on 27th February 2026 it was Rs 1,259, which is over 120% jump. However, in the last 6-8 months, the stock has corrected by over 20%.
A 50% Discount from All-Time Highs
At the current price of Rs 1,259, the stock is trading at a discount of 52% from its all-time high of Rs 2,652 and a discount of 22% from its 52-week high of Rs 1,605.
The company’s stock is trading at a PE of 26x, and the current industry median is 30x.
Operating Profit Margins for Apollo Sindoori Hotels could be one reason that pushed Porinju Veliyath to keep adding more of the company to his holdings. Here is how the OPM moved up:
| Quarter | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 |
| OPM | 3.54% | 2.16% | 3.60% | 4.24% | 5.94% |
This indicates that the core business is becoming leaner and more efficient. When a company hits record revenues and peak operational efficiency simultaneously, it creates a coiled spring effect; as soon as interest costs stabilize, the bottom line tends to explode.
Value Picks or Value Traps?
Whether these moves are the prelude to a multi-bagger rally or a quiet accumulation of value traps remains the central question for investors. Porinju Veliyath has built a name for himself by finding the signal through the noise, and his increasing interest in Orient Bell and Apollo Sindoori Hotels suggests he sees a fundamental recovery that the broader market is missing.
In both cases, the numbers tell a story of operational resilience. Orient Bell is trading at a steep discount to its historical highs, with a revenue base that underplays its current market valuation. Meanwhile, Apollo Sindoori is showing a clear trend of becoming leaner and more efficient, even as its stock price takes a breather.
For the average investor, the takeaway here is not necessarily to mirror every move made by a super investor. Instead, it is to notice the patience required to sit through periods of underperformance while the internal mechanics of a business begin to turn. Veliyath is perhaps betting on the coiled spring effect; the real test will be whether the market eventually agrees with his math. Add these stocks to a watchlist to keep a track of whether they do.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.