How to spot multibaggers in this market? Porinju offers a formula
Porinju says prudent investors will make big money outside Nifty and Sensex baskets.
The recent blip in the market will help keep the market healthy, says he. Equity benchmarks BSE Sensex and NSE Nifty plunged 554 points and 203 points to 32,760 and 10,118, respectively, in the three sessions till November 15. The indices have logged gains for the past four sessions since then.
Porinju says today’s Indian market is a paradise for stock pickers, and prudent investors will make big money outside the Nifty and Sensex baskets in the coming years.
Recent reforms initiated by the government will bring down corruption as well as poverty and make Indians richer.
Porinju does not see any multibagger from among Nifty50 stocks. “Look beyond Nifty to make big money,” he said in an interview with ETNow.
The ace stock picker recently increased his stake in GVK Power to around 6.5 per cent. Commenting on the debt-laden firm, he said: “Infrastructure is definitely a story to look at going forward. So, GVK is a company with leverage. It has got very interesting assets and looks futuristic also.”
He sees huge potential in GVK Power once it comes out of the debt trap. “If you want to make big money, or are looking for multibaggers, you have to take risk,” said Porinju.
He said mega gains and big appreciation lay ahead in this market, and one should avoid looking at the indices on a daily basis.
Porinju avoided a comment on the PSU bank stocks, saying, “investors have much better things to do.”
He says a status of under-valuation is getting rectified in Tata Global Beverages, but Tata Coffee looks good at current valuations.
On a year-to-date basis, the Tata Coffee stock has surged 22 per cent to Rs 141.45 till November 15, 2017, while Tata Global Beverages has advanced 102 per cent to Rs 250.50.
Tata Coffee and Tata Global Beverages traded at Rs 115.55 and Rs 123.55 on January 2, 2017.
For stock-specific investors, the ace investor recommends turnaround stories in the midcap and smallcap segments. One should be careful about over-valuation at the same time, he warns.
Porinju is bullish on HSIL. The stock in up 62 per cent on a year-to-date basis. “I think HSIL can double stock price in next one or two years,” said he.
Porinju’s holds Tata Global, Tata Coffee and HSIL in his PMS portfolio.
The ace investor still likes DCM Shriram. He is buying that stock since it was at Rs 50. It is hovering at Rs 571 now. He said DCM Shriram is a risk-free company and he continues to hold it in his portfolio.
Porinju’s Equity Intelligence also holds 7.17 per cent stake in Emkay Global, 3.3 per cent Sarda Plywood and 2 per cent in Ansal Buildwell.
“You can maximise returns in this market with reasonable churning,” he said.