Porinju Veliyath: This Kochi-based investor gives reasons to stay put in Indian equity market
Data showed that Equity Intelligence held over 1 per cent stake in companies such as Orient Bell, Ansal Buildwell, Hindware Home Innovation, Kaya and Priti International as of December 2022.
- Mar 24, 2023,
- Updated Mar 24, 2023 11:04 AM IST
Kochi-based investor Porinju Veliyath believes that the next 20 years will be the rising phase of India in the global economic landscape. In his letter to investors, the founder and CEO of PMS firm Equity Intelligence said that India should breakout with substantially higher per capita GDP and bring a prosperity of immense proportion.
“Nifty and Indian equities, in general, would have even more stupendous rise on the back of potential much faster economic growth and corporate earnings,” he said.
To convince investors to think and stay invested for long, Veliyath highlighted that Warren Buffet once said that nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 to 20 years.
“We hope that this one advice is taken home by a lot more Indians to generate generational wealth for their families over the next 10 to 20 years; especially when we see India rising. We hope our cumulative learnings and rising prosperity of India would help us generate even more wealth for our investors,” he said.
From a few crores to Rs 1,700 crore assets under management, Veliyath said that Equity Intelligence has lived through multiple bear-bull cycles since 2003. This includes several elections and political turmoil, the global financial crisis of 2007-08, once in the century pandemic, several scams and frauds, among others.
“The last two decades have seen the sentiment pendulum swing between greed and fear many times. We have managed to avoid getting caught at the wrong end of the pendulum most of the time but sometimes we may have faltered too. And all this has led to cumulative learnings that very few organisations in Indian capital markets can claim to have amassed,” he said.
The market veteran added that when Equity Intelligence was founded, China was the rising story of the global economy. In fact, the 2003-2008 global bull market was predominantly driven by capital formation in China. Last 20 years, India's nominal GDP had grown at 12.5 per cent CAGR, Nifty earnings had grown 13 per cent CAGR and for investors, Nifty had delivered 15.4 per cent CAGR. This proves the belief of a value investor that in the long run, prices are slaves of earnings even though daily quotes fluctuate constantly reacting often illogically to all sorts of temporary and trivial influences.
Data showed that Equity Intelligence held over 1 per cent stake in companies such as Orient Bell, Ansal Buildwell, Hindware Home Innovation, Kaya and Priti International as of December 2022. Veliyath also held over 1 per cent stake in companies such as Duroply Industries, Ashok Alco-Chem, Aurum Proptech, Kerala Ayurveda, Taneja Aerospace & Aviation, Lakshmi Automatic Loom Works, Max India and Orient Bell.
Kochi-based investor Porinju Veliyath believes that the next 20 years will be the rising phase of India in the global economic landscape. In his letter to investors, the founder and CEO of PMS firm Equity Intelligence said that India should breakout with substantially higher per capita GDP and bring a prosperity of immense proportion.
“Nifty and Indian equities, in general, would have even more stupendous rise on the back of potential much faster economic growth and corporate earnings,” he said.
To convince investors to think and stay invested for long, Veliyath highlighted that Warren Buffet once said that nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 to 20 years.
“We hope that this one advice is taken home by a lot more Indians to generate generational wealth for their families over the next 10 to 20 years; especially when we see India rising. We hope our cumulative learnings and rising prosperity of India would help us generate even more wealth for our investors,” he said.
From a few crores to Rs 1,700 crore assets under management, Veliyath said that Equity Intelligence has lived through multiple bear-bull cycles since 2003. This includes several elections and political turmoil, the global financial crisis of 2007-08, once in the century pandemic, several scams and frauds, among others.
“The last two decades have seen the sentiment pendulum swing between greed and fear many times. We have managed to avoid getting caught at the wrong end of the pendulum most of the time but sometimes we may have faltered too. And all this has led to cumulative learnings that very few organisations in Indian capital markets can claim to have amassed,” he said.
The market veteran added that when Equity Intelligence was founded, China was the rising story of the global economy. In fact, the 2003-2008 global bull market was predominantly driven by capital formation in China. Last 20 years, India's nominal GDP had grown at 12.5 per cent CAGR, Nifty earnings had grown 13 per cent CAGR and for investors, Nifty had delivered 15.4 per cent CAGR. This proves the belief of a value investor that in the long run, prices are slaves of earnings even though daily quotes fluctuate constantly reacting often illogically to all sorts of temporary and trivial influences.
Data showed that Equity Intelligence held over 1 per cent stake in companies such as Orient Bell, Ansal Buildwell, Hindware Home Innovation, Kaya and Priti International as of December 2022. Veliyath also held over 1 per cent stake in companies such as Duroply Industries, Ashok Alco-Chem, Aurum Proptech, Kerala Ayurveda, Taneja Aerospace & Aviation, Lakshmi Automatic Loom Works, Max India and Orient Bell.