Porinju recommends stocks to buy after Gujarat elections

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Pee Vee
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Porinju recommends stocks to buy after Gujarat elections

Post by Pee Vee »

Porinju Veliyath, Equity Intelligence India, has advised individual investors to buy small and midcap turnaround stocks. This is because large mutual fund managers and big fund managers will find it very difficult to take full advantage of this opportunity because some of these stocks are very below their benchmark for buying a company.

Period of golden opportunity to pick smaller businesses in India and become rich

My focus is on the midcaps and because my AUM, assessment and management in portfolio management has been growing very healthy. I am looking into the high quality large midcaps. I have graduated to that now. But I still believe individual stocks pickers should look smaller companies which may be having 100, 200, 500 crore kind of business. Some of them are doing large business, but the bottom line may not be attractive for various reasons and the biggest reason being, the promoters siphoning out money without paying tax and sharing with the minority shareholders. That era is coming to an end. This is very, very, very important for individuals small stock pickers.

They can make huge money and this has been playing for the last two years as very often I have been talking about it and this will continue for next two to three years. This is once in lifetime opportunity of five years -- a period of golden opportunity to pick smaller businesses in India and become rich.

However, large mutual fund managers and big fund managers will find it very difficult to take full advantage of this opportunity because of the illiquidity and some of these are very below their benchmark for buying a company. It may be Rs 2000 crore minimum market cap and they have to wait for these companies to graduate to Rs 2000 crore or Rs 3000 crore market cap before buying it.

Godrej Industries, Godrej Properties & Godrej Agrovet

Till that time, the individual investors can buy this kind of idea. I can never talk about the individual small stock names but investors can look at some of the Godrej Group companies for example for decent compounding.

If you remember I was very bullish on Godrej Properties over last two-three years and Godrej Industries, Godrej Agrovet the new baby is now listed. There are such smart companies with big brands and national reach and these companies can grow much beyond what most people, most investors think in the market. If they are Rs 10,000 crore today, they can grow to Rs 30,000 crore and Rs 50,000 crore crore eventually in next 10 years time.

Investors should focus on such kind of stories. Use common sense and wisdom and do not give too much importance to the current numbers of many of these companies because they are not really kept as benchmark as they may be having challenging times especially with the regard to the margin.

Some of the evolving business may not even be having margin. So those kind of things have to be considered with a lot of common sense.

https://economictimes.indiatimes.com/ma ... 115491.cms
valuepicker
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Re: Porinju recommends stocks to buy after Gujarat elections

Post by valuepicker »

GODREJ AGROVET looks good as it has corrected after listing and can be a good compounder as it is in a sunrise industry
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