Porinju Veliyath recommends infra stocks to buy for 2018

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Pee Vee
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Porinju Veliyath recommends infra stocks to buy for 2018

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@porinju Call On Markets on @BTVI

India In a Multi-Year Bull Run
Equity Can Create Unprecedented Wealth Indian
Markets Very Healthy, Don't See A Bubble Bullish On 'India' As A Theme
Look At Emerging Companies,
Focus On Value Picking
Look At Infra Stocks With Execution Capability

GVK Power & Infra, J Kumar, Simplex

Have Recently Bought Some Infra Cos; Currently Hold GVK Power & Infra.

Some Infra Cos Like J Kumar, Simplex May Also Perform Well Going Ahead

@porinju bets on Infra theme, tells @btvi
Infra can be a big theme in the markets
Look for names with strong execution track record and long term visibility

Selective mid & small caps are biggest wealth creators in India, says @porinju of Equity Intelligence. He is bullish on Indian Hotels at current levels and sees significant change in Tata group cos.

@porinju of Equity Intelligence believes there can be a game-changing environment for railway stocks

Stocks in Porinju Veliyath's portfolio

Kaya, gvk, zee media, som distillery, sarada plywood, cimmco, Tata global, Tata coffee, Aarvee denim, Liberty shoe, Daawat, om metals infra, viceroy hotels, Gpt infra, confident petro

Palash Securities. It is part of KK Birla Group. @porinju holds 1.01%.

Indian Hotels, Tata Global Beverages, Tata Coffee, Tata Chemicals

I am very bullish on Indian Hotels kind of stocks even from these levels. Of course, I am not holding the stock. Indian Hotels was mismanaged by the Tatas for the last 20 years. Otherwise, it would have been already three-four times of current market value. If it is better managed under the new management led by N Chandrasekaran, this company can still double from here in the next three-four years' time. I am not holding the stock.

As a segment, as a vertical I would say I had recently indicated about this Tata Group is changing significantly after Chandrasekaran has taken over and Mr Chandra is doing an amazing job to my knowledge. The way he is looking into every segment, every company and interacting with the CEOs, he is exceeding expectations, They are looking at profitable growth. The earlier motto in the Tata Group 10 years ago, 15 years ago was about going global, acquiring businesses and growing big. That theme has given a setback to many of the companies in the group. Now things are changing. They are trying to disinvest which is not the core business or focus on their strength in each of the segment.

I would say some segments - the Tata Global Beverages and Tata Coffee kind of stocks, even some part of the Tata Chemicals have found consumer interest. There can be infrastructure segment for the Tata Group which indicated recently that it is an unlisted company. There could be something happening in Tata Power, Tata Projects which is an unlisted subsidiary and there are lots of companies in that segment. None of them are well organised, nor well managed.

If the Tata Group wants to keep this vertical with them, they will be looking at growing it big, consolidating and restructuring all these companies together. In that case, there will be lot of wealth creation in that pocket. I am not recommending any individual stocks. Look at the infrastructure business of Tatas. They could want to grow big in that sector.

Railway stocks Titagarh Wagons, Texmaco

In the infra sector, if you look at the government spending and the upcoming projects, the larger projects and government's vision -- the railway stocks have not moved up much. Even Titagarh Wagons has moved a little -- 30-40%. Texmaco is almost at the same price. I am holding both the stocks and they are not big performers but I feel there can be a game changing kind of development for these companies going forward.

Looking at the big picture, the way government is planning to transform the railways, it is a huge task. It is a very large organisation and we need to upgrade and we need to spend huge money on railways because looking at our demography and the way we can develop it for the economic growth, if railways and the coastal seaways are properly managed, that can make our Indian economy grow higher. That is the kind of opportunities we are sitting on. This needs a large amount of capital outlay and the biggest benefit India is accruing from the recent reforms.

DCM Shriram

In the coming years, you will see significant increase in the number of tax payers and the amount of tax being collected by the government. It will surprise most of the economists and we can even afford to spend money on such important projects. So look at companies which are catering into those aspects. In rural economy theme, I used to buy DCM Shriram a long ago when it was Rs 50-60. There are a very few companies which have strong numbers but investors have to be watchful. Many companies will emerge in this sector.

Jain Irrigation, EPC Industries

Now there is Jain Irrigation which has already moved up. There is something like Mahindra. It is holding some stock called EPC Industries. There are a number of small companies. Some of these companies can come up and do large business because there is opportunity out there in the coming years but I do not want to give any small stocks as a recommendation because some of them are very illiquid, some of them there is no visibility at this point of time. In some of these cases, investors have to take a chance, they have to take calculated risk going forward then only there is multibaggers.

https://economictimes.indiatimes.com/ma ... 615370.cms
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