The founder of Equity Intelligence India, believes that one cannot remain bearish in the Indian economy. He observes that select micro caps have been turn around candidates.
Porinju Veliyath has always been bullish on select micro cap stocks, and sees a lot of opportunity in this space. Recently he had tweeted that India is a paradise for micro cap investing. Also known as penny stocks, mico-caps constitute those companies whose market capitalisation is less than Rs 2,000 crores. Speaking to ET Now, 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 1800 crores. On a year to date basis, the stock has returned 110%, while the BSE Smallcap Index is up by around 33% in the year. While these returns may seem impressive, Porinju expects 5- 10x growth from select infrastructure space over the next few years. He believes that the infrastructure companies have reached an inflection point, and all companies will not survive. The MD and CEO of Equity Intelligence India, observed that GVK Infra is a very important stock in the infrastructure space. However, he advised the investors interested in the infrastructure industry to read the annual reports before putting in their money. The stock was trading at Rs 11.65 on Friday, up by more than 2.5% from the previous close.
Speaking to ET Now, he said that one cannot remain bearish in the Indian economy. He shared that he continues to remain fully invested at all times in the market. The ace investor posits that stock market is the best way to benefit from structural changes in the economy. While sharing his thoughts on the Nifty 50 attaining the much awaited 10,000 points figure, he tweeted, “Nifty: 5,000 to 10,000 in 10 years, next 5000 points will take only 2.5 years – though not much relevant to stock-pickers”.