For some reason, Porinju Veliyath has developed the reputation of being a picker of low-quality and junkyard stocks with dubious corporate governance standards. This perception has made him the target of purists who believe that such stocks are risky and no better than a gamble. Also, when Porinju rakes in big bucks from such stocks and tom-toms the fact, the purists suspect that there is more to it than meets the eye.
Fortunately, in recommending stocks at the CNBC Investors’ Camp, Porinju has been sensible and has steered clear of controversy. He has recommended stocks which are text-book examples of top quality management, corporate governance, and high growth potential.
Let’s do a quick review of Porinju’s latest stock recommendations:
Hindustan Sanitaryware (HSIL): We are very familiar with HSIL because it also happens to Daljeet Kohli’s favourite stock. Daljeet has carefully dissected the stock and explained each of its fundamentals to us. Emkay and Vikas Sethi are also bullish about HSIL. The stock is presently in the doldrums because of the slow down in the real estate sector. However, given its “strong brand, variety of product portfolio, and very strong distribution network across the country” it is only a question of time before the stock takes off in an upward trajectory.
NIIT: Porinju has already made a packet from NIIT as we saw earlier. Porinju called the stock a “very, very safe stock at inflection point”. The stock also has the backing of Vijay Kedia. Vijay Kedia recently tweeted about NIIT: “For 3 years perspective it looks to be a good investment. It holds 24% of NIIT Tech.”
Godrej Properties, Tata Global Beveragres and Transport Corporation of India:
All three are well-known blue chip and no-brainer stocks.
Godrej Properties belongs to the reputed Adi Godrej group and is engaged in top-quality realty projects. When the real estate market recovers, Godrej Properties will be among the first to get off the block.
Tata Global Beverages belongs to the venerable Tata group. It has been one of Porinju’s old favourites though it has also been very sluggish. Porinju is hopeful that the change in management strategy will send TGBL rocketing into space.
Transport Corporation of India (TCI) also needs no introduction to us given its pedigree of ace investors. Ramesh Damani and Radhakishan Damani hold large stakes in it. TCI has a stranglehold over land and coastal shipping and is a direct proxy for the growth in the great Indian economy and the e-com sector.
It is clear that Porinju has put in a lot of thought in selecting his top five stock picks. He appears to have consciously avoided his other “high risk – high reward” stocks like Izmo, Palred, Sahyadhri Industries, Ansal Buildwell, Jubilant Industries etc as they may not be suitable for an average-Raju sort of investor.
Hopefully, now even the purists will like Porinju’s stock selection and they will go easy on him in the future!