Porinju Veliyath had predicted 2018 to be a comeback year for two smallcap laggards. One of them rallied by more than 8% today, after the company's management informed media about expectations of increased orders.
Ace investor Porinju Veliyath had predicted Samvat 2074 to be a comeback year for shares of Titagarh Wagons Ltd, which had returned just 2% since January up to October. However, the stock has been buzzing in the markets lately, rallying more than 32% in the last one month alone. On Monday, Titagarh Wagons Ltd shares zoomed by more than 7.5% after Umesh Chowdhary, VC & MD of Titagarh Wagons told media that that the railways have enhanced their freight loading target and the wagon tender that was floated for about 9,500 is going to be finalised in a matter of days. The shares closed at Rs 177.35.
Track live stock price: Titagarh Wagons Ltd
“They are also anticipating some enhancement of wagon offtakes in order to take care of their enhanced target. There is no confirmed report that we have from the railways or officially they have not communicated that to us. We are expecting between 20 percent and 25% between Titagarh and Cimmco of the total order,” Umesh Chowdhary pointed out.
Earlier, Porinju Veliyath had predicted the coming year to be comeback for Texmaco Rail too. “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 told ET Now last month.
Decoding the investor psyche in the stock market currently, Porinju Veliyath told earlier this month that investors in India miss the ‘big picture’ while investing for the long term. Explaining the current composition of the markets Porinju Veliyath of Equity Intelligence India told ET Now, “The other day I was talking about the current composition of market players. We have 10% bulls, 20% bears and 70% monkeys. This is an opportunity for the first 10%. This composition changes with time.”
Porinju Veliyath pointed out that the investors must take into account a lot of factors before finally picking stocks. “Investors should not feel that equity investing is just secluded, wherein you look at the charts to buy and sell, that’s a very low end activity. Long-term investors who want to create wealth by investing in equities must look at a lot of things. Politics, the social structure, the changing landscape of the economy, the structural changes, how the corporate world is changing, the frauds, whether they are coming down or not. There are n number of factors to consider, ” said the expert.