Porinju Veliyath who delivered 153% return to investors in FY21 tells where to invest now

While retaining a bullish view on the Indian equity market, a Kochi-based investor Porinju Veliyath said every sector in India is giving an opportunity to investors on Dalal Street. However, one should stay very choosy in stock picking.

Veliyath who is the founder and CEO of Equity Intelligence India came with a bang in FY21. His portfolio management services delivered a 153% return to investor last fiscal when the benchmark BSE Sensex witnessed a surge of 75%.

However, he admitted that the year 2018 and 2019 stood very challenging for him due to heavy selling in the broader market. Broader indices BSE Midcap and BSE Smallcap, which are hovering at their record high levels at present, had witnessed a correction of up to 30% between January 2018 to February 2020.

“Every investor is prone to make mistake. We had a painful time in value investing. We played formalisation and compliance as themes earlier than needed. I have tweaked my investment strategy but not changed it” he said in an interaction with ET NOW on Monday.

Veliyath who has 1.2 million followers on the social media platform twitters is widely known among investing community for identifying stocks early.

What to buy?

Sharing his thoughts on the available investment opportunities in the market, he said that the biggest theme right now is to buy proven winners at a premium. However, the real opportunities are still in the broader market.

The market maven is bullish on Tata Communications. “I still find it underpriced. However, I advised investors not to buy this stock in a hurry,” Veliyath said adding the company has really got transformed into a real global solution company. The opportunity size for Tata Communication is really big.

Veliyath is also positive on public sector companies. “PSU stocks still looking good as a theme. I expect further re-rating in this space. I am very confident that disinvestment are going to successful and investors should take PSUs seriously. This can be a theme for the next 1-2 years,” he said.

He also advised leveraged traders to stay careful as money made can be lost very fast if there is any correction. However, he advised investors to strictly adhere to the principle of value investing.

“It is going to be a good time in the market,” Veliyath said adding he does not see any other asset class near to equity investing for wealth creation,