Porinju Veliyath’s #1 bet is down 75%: Why the ‘small cap king’ isn’t selling |
Porinju Veliyath is a super investor in the Indian stock market. As the founder of Equity Intelligence India, he has built a reputation as an astute stock picker who is not afraid to take risks. He is famous for swimming against the time, while ignoring the market noise that scares most investors. This clubbed with deep research has helped him find many future multibaggers over the years.
Thanks to his track record, investors pay attention when he makes a move. It turns heads when an expert like him sticks with stocks that otherwise scream danger to the average investor. When Porinju holds onto companies with flashing red warning signs, it sparks curiosity. One wonders what he sees that the rest of us are missing.
Right now, his two biggest holdings by holding value, have given rise to a similar conversation. They are trading at a discount of over 45% and 75%, respectively. Plus, the financials for one and valuation for the other seem to be huge red flags. Let’s take a closer look at these stocks.
Incorporated in 1996, Aurum PropTech Ltd is in the business of software development and other services for the real estate.
With a market cap of Rs 1,260 cr, the company integrates tech expertise in real estate, and builds and operates PropTech products, services, and platforms catering to the B2B, B2C, B2B2C, and D2C Real Estate Value Chains.
Porinju Veliyath, has held a stake in the company since the filing for the quarter ending December 2021. He currently holds 2% stake in the company under his portfolio and another 3.7% under his holding company, Equity Intelligence India Private Limited. A total of 5.7% stake worth Rs 79 cr.
Let us now look at the financials of the company that are raising a lot of questions and rightly so.
Sales of the company have seen a compounded growth of 92% in the last 5 years as it went from Rs 10 cr in FY20 to Rs 264 cr in FY25. And for H1FY26, sales of Rs 151 cr have been recorded.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) is where the........