Porinju Veliyath’s “Chor” Theory endorsed by Radhakishan Damani. Recommended Stock Bought
Porinju Veliyath’s theory with regard to buying stocks of “chor” promoters has been cold-shouldered by investors. However, the endorsement of the theory by none other than Billionaire Radhakishan Damani means that we can no longer ignore it but have to pay attention and implement it
“It is a known fact that around 75 per cent of promoters of domestic-listed companies are not very ethical and honest. They do not take care of the minority shareholders’ interest. Also, they do not really create wealth for all shareholders. So, this is the major block for people to look at small cap and midcap companies and some of them find it very easy to buy the blue chips — the blue chips of today’s or yesterday’s. The year 2015 will be very different.”
“These may be small companies. They may look like penny stocks. The managements may not be right. They may not be paying dividends, but that is the space to be in. Most importantly, some of these stocks may not be liquid and some of them may be listed only on BSE. These are not the factors which should discourage individual investors from buying the stocks,”
Porinju first recommended Fortis Healthcare in April 2016 on the logic that there is huge potential in the healthcare space.
His precise words were as follows:
“In the case of Fortis Healthcare which is a listed company in the healthcare space, there are some concerns about the management, among lot of investors but still I think these all companies can change for much better from the management perspective and from industry environment.
I find that around Rs 8000 crore market capitalisation, Fortis Healthcare can give a decent return. I am not talking as a multi-bagger kind of thing. It is a very large midcap, one of the leaders in India in a very important futuristic industry”.
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