The Smallcap Czar- Porinju Veliyath Success Story [& More…]
Porinju Veliyath Success Story:
Porinju Veliyath comes from Kerala from a very humble family background. His story is really captivating, he started his career in Mumbai as a floor trader with Kotak securities in 1990, later he joined Parag Parikh securities as a research analyst and worked as a fund manager till 1999. Here he learned the skill of buying and selling of stocks. Then he shifted back to Kochi and founded his own ‘Equity Intelligence’, a portfolio management service.
He is a small-cap value investor. Porinju Veliyath has identified several multi-bagger stocks early in his career such as Shreyas Shipping, Kitex Garments, KRBL etc. He is reported to have made crores for himself and his clients in multi-bagger deals.
In one interview with ET he said:
“Equity investment is not a hectic activity if someone makes it that way, they will underperform. This is something we have to keep simple. Too much information/noise is not good, it takes away a lot of spirit of living”,
and that is why he prefers to come to his farmhouse often where he was actually born. In a calm situation, he’s able to analyze more effectively.
Equity Intelligence is a SEBI registered portfolio manager which was incorporated in the year 2002. The Fund has three key personnel, namely, Porinju Veliyath, the fund manager, Abhilash Varghese, the Director of Operations and Miriam Philip, the relationship manager.
In an interview with ET, Veliyath claimed his investment portfolio has generated 33 percent average compounded returns every year since 2003.
Indeed he is a master of choosing a right stock, here is the portfolio and shareholding of Equity Intelligence, the main fascinating thing about his portfolio is the YoY(year on year) gain
|Stock||CMP (Rs)||YoY Gain|
|Lakshmi Vilas Bank||161||81|
|Hindustan Sanitaryware (HSIL)||324||24|
|Jubilant Life Science||706||90|
|BBTC (Bombay Burmah Trading Corp)||716||102|
|Tata Global Beverages||143||31|
|Bengal & Assam||1306||202|
Nevertheless, he is not correct all the time, for example in the case of Selan Exploration which has yielded a negative return over three years. He said that “We cannot go and casually buy any stock in any industry. One has to be really choosy in picking stocks and that is required every time, anytime,”
As of Feb’17, they are worth of Rs. 742.92 crores. He has also written one insightful book ‘Ohariyiloode Engane Nettam Koyyam’ (Complete step-by-step guide to share market and investing) in 2008 by Dhanam Publications.
Apart from stocks, he loves nature and he has a huge farmhouse in his hometown. Porinju Veliyath is an organic farmer and his farm is spread over acres. There is a plenty of water and thus he has a huge pond, the source of water is natural as spring water runs through it. As the land is very fertile, he grows chikku, mangoes and a number of other vegetables. A lot of birds and animals are there.
He is quite active on twitter and has a huge fan following, there is no doubt that he is a mastermind as it is evident from his recent tweet “Select Indian equities could be the second best hedge against domestic inflation, global slowdown, negative rates and deflation, fanaticism/terrorism!”. Some of us might understand this, some might not. But the truth is everyone in the market wants to lose small, whereas he wants to win big!
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Being a realist, I don’t have any big ambitions on my India – we just need a below-average corrupt party and an above-average intelligent leader!
— Porinju Veliyath (@porinju) February 24, 2018
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting