2 infra stocks + healthcare stock recommended by Porinju Veliyath

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Pee Vee
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2 infra stocks + healthcare stock recommended by Porinju Veliyath

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IRB Infrastructure and Titagarh Wagons

Porinju Veliyath, MD & Portfolio Manager Equity Intelligence India, has recommended IRB Infrastructure and Titagarh Wagons.

IRB Infrastructure has reasonably healthy balance sheet and good business model.

Titagarh Wagons lost big money in European operations but in India, it is still making some profits. Given the railway and related infrastructure allocation coming up, we have to be optimistic on these companies going forward.

Stock picking in infrastructure space is a challenge. Some of these are emerging companies within infrastructure space. There could be future L&Ts in next 5-10 years.

Fortis Healthcare

Porinju revealed that recently he bought some shares in Fortis Healthcare. The rally in Fortis Healthcare shares after promoters Malvinder and Shivinder Singh resigned and Supreme Court allowed to sell pledged shares is the best example of corporate governance, he said, adding it shows that how bad the promoters behave with investors community and country.

Future Group stocks

He exited Future Group stocks which moved up by 4-6 times.

No Bubble

Porinju believes the markets are not looking into any bubble territory, they look reasonable and healthy.

Benchmark indices have corrected about 6 percent and mid & smallcaps around 8 percent in the last 2-3 weeks, which was healthy correction, Porinju said.

In fantastic rally of 29 percent on the Nifty in 2017, investors made average 30-40 percent kind of returns and smart investors made 80-90 percent returns; but in 2018, investors have to live with much lower return expectations, he said.

He thinks correction for the time being is done, but some stocks, which are still overpriced, may correct more.

Avoid 'too hot' stocks

Porinju advised investors to avoid 'too hot' stocks.

After sharp run and Union Budget, now the time has come that the market has to consolidate, he said. "We can't see 20-30-40 percent rally every year."

Porinju strongly believes politics will take the centrestage on Dalal Street over next one-and-half-years. In fact, politics will be trend decider for the market.

All-in-all, this is a year of consolidation but I am optimistic on investing front. India is in the midst of huge economic reforms, he believes.

Three Themes

Smart investors can create wealth by using midcap and smallcap theme for another 2-3 years.

The second theme is corporate governance.

Buying stocks when they have a problem in the company and selling it when everything is perfect - is the mantra of ace investor Porinju.

He continues to be bullish on infrastructure space as there is large deficiency of infrastructure in India. India needs to spend Rs 10-50 lakh crore over next 10 years to help people to live comfortably.

http://www.moneycontrol.com/news/busine ... 09481.html

Top 7 stocks which could grow from small & midcap stock to largecaps: Porinju

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.

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.

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.

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.

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.

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.

http://www.moneycontrol.com/news/busine ... 59691.html
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