Porinju Veliyath recommends three realty stocks & two railway stocks for 2018

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Pee Vee
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Porinju Veliyath recommends three realty stocks & two railway stocks for 2018

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Porinju Veliyath , MD, Equity Intelligence India, has recommended Oberoi Realty, Sobha and Godrej Properties for the new year 2018.

Stock pickers can make 40% to 50%

It is very clear that the economy and the equity markets are entering into a new growth orbit and we will be seeing very, very strong economic indicators, going forward. The massive economic reforms which happened last year that is Samvat 2073, are going to start yielding results in 2074. I am very optimistic and I am very confident that the people who buy the market, the Sensex or Nifty can make may be around 15% return. The stock pickers are going to make 40% and 50% in the next one year. I am very confident about that.

The Sensex and Nifty will be up by at least 15% to 20% on the broader basis. Investors should focus on stock picking. They should consider the structure of the economy and the market structure, the variety of industries we have in our economy and investors should look for the emerging companies in the midcap and small cap segment. That is where the big money is.

Equity Intelligence PMS gave 45% return

Those who do the cherry picking can easily make 40-50% return like last year. Last year, the same thing happened. Lots of people, even our PMS has performed more than 45% weighted average for all the investors put together at a higher AUM. May be many other portfolio managers, fund managers, AMCs and individual investors made much more money than that. So this is going to be repeated. I am very confident.

Three high quality real estate companies to buy -- Oberoi Realty, Sobha Developers and Godrej Properties

Three high quality real estate companies -- Oberoi Realty, Sobha Developers and Godrej Properties have moved up very well. But even 2074 can be a very good year for these companies, And not only for next one year, next 5 to 10 years these efficient and well managed real estate developers can do well. As a business they have a long way to go, We cannot underestimate.

Investors should focus on smart developers with capability to execute and we need to go far in this business. I am bullish on these three stocks -- Oberoi, Sobha and Godrej Properties. We are not holding stocks in the portfolio right now except Godrej Industries which holds Godrej Properties.

Next multibagger stocks Texmaco Rail and Titagarh Wagons

The next multibagger are two companies from the railways segment -- Texmaco Rail and Titagarh Wagons. One is at around Rs 2000-crore market cap and the other one is at around Rs 1500-crore market cap. Both have strong balance sheets and execution capabilities. The orders should start pouring into these companies in the Samvat 2074. These two companies, investors should really watch for reasonable gains, not as multibaggers.

Allcargo Global Logistics

Nobody has been talking about Allcargo Global Logistics for a long while. We have been buying stock in PMS for some time. The stock prices is around Rs 165. There is no hurry to buy. It is a very heavy stock. Investors should not just jump into buy this stock at this point of time. It has around Rs 4000-crore market cap. It is a very large logistics company. Multimodel logistics player. I think they are largest LCL consolidators in the whole world. This company is worth watching. Again, it cannot be a multibagger. But 2074 should be a turnaround year for Allcargo.

We have to grow our economy much faster in the coming quarters, in coming years. I am very confident and you will see the kind of money flow into Indian markets. Samvat 2074 will be the highest every equity allocation by household savings in India.

I can guarantee you that and also it is going to have a boost to the capital formation for adding the economic growth and because though there are challenges like the high interest rate kind of thing, it all will get adjusted in this next one year. We are heading for much better stable economic growth.

https://m.economictimes.com/markets/exp ... 150077.cms
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