Porinju Recommends 7 Multibagger Small-Cap Stocks

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Pee Vee
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Porinju Recommends 7 Multibagger Small-Cap Stocks

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Porinju Veliyath, MD, Equity Intelligence India, has recommended 7 small & midcap stocks which can become large cap multibagger stocks

(i) Allcargo Logistics:

I like Allcargo logistics and we have been buying this company for our portfolio as well. It is a decent midcap company which has a potential to become a largecap company going forward. It will grow along with the economy.

(ii) Indian Hotels:

Although this company has been lagging behind in the last couple of years despite a turnaround in the industry. But, this is one stock which is an industry leader and can be differently managed to grow faster and create wealth for shareholders for next 5 years.

(iii) Kaya Ltd:

Kaya feeds the luxury segment of the society. The stock is already up over 30 percent so far in the year 2017. Kaya Ltd started its journey on 27th March 2003. It now has a range of Kaya Skin Clinics across India and the Middle East.

(iv) UFO Moviez:

In the media space, Porinju likes UFO Moviez which is on track to become a large company. The stock rose nearly 20 percent so far in the year 2017. It is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of a number of screens.

UFO operates India’s largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India’s largest D-Cinema network.

(v) & (vi) Tata Global Beverages & Tata Coffee:

Porinju is very positive in selective Tata Group stocks. Tata Global Beverages has actually doubled in the last 6 months because there is a change happening at the group level. The company still has potential to create wealth.

Investors can look at some of the underperformers in the Tata Group because they remained under pressure thanks to not so dynamic management. But, things are now changing under Chandra, said Porinju. The management has also indicated selling of underperforming companies.

(vii) GVK Power & Infrastructure:

Infrastructure in India is going to witness manifold growth in coming years. Plenty of money running into crore is likely to get invested both by the private sector and the government in this space. But, the problem will come with execution.

Porinju sees tremendous potential in GVK when it comes to execution of orders and the segment it caters to – building of airports and almost all the airports are in trouble which means more airports will be required. Going forward, the management is planning to make the company debt free in the next 2-3 years.

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