Porinju Veliyath, often referred to as the "Warren Buffett of India," commands respect in the investment community. As the founder of Equity Intelligence India Pvt Ltd, he has established himself as a formidable force in the world of finance. Known for his astute, value-driven investment strategies, Veliyath has successfully identified multibagger stocks, helping countless investors build wealth. His stock selections are worth noting, especially for those new to the market, as they can learn from his proven methodologies.
Notable Stocks in Veliyath’s Portfolio
Porinju Veliyath holds a diversified portfolio, but two stocks stand out as his major investments. These companies reflect his unique approach to identifying potential high-growth opportunities.
Aurum Proptech Ltd: A Tech-Driven Real Estate Player
Founded in 1996, Aurum Proptech Ltd specializes in software development and technology solutions for the real estate sector. With a market capitalization of ₹493 crore, the company has carved a niche by offering various PropTech products and services for diverse customer segments, including B2B and B2C.
- Investment Insight: Veliyath’s significant stake in Aurum Proptech comprises 4,320,000 shares, valued at approximately ₹73 crore, making up about 6% of the company.
Aurum’s growth trajectory is noteworthy. The company’s sales skyrocketed from ₹10 crore in FY20 to ₹264 crore in FY25, achieving an impressive 92% compound annual growth rate over five years. However, the ride has not been smooth for EBITDA, which has fluctuated considerably during this period.
EBITDA Performance (FY20–FY25):
- FY20: -₹1 crore
- FY21: -₹10 crore
- FY22: -₹19 crore
- FY23: -₹16 crore
- FY24: ₹3 crore
- FY25: ₹46 crore
The current fiscal year appears to mark a turning point for Aurum, as it finally reports positive operating profits.
Despite promising sales numbers, net profits raise eyebrows due to their decline since December 2021. The company’s net profit has been inconsistent:
Net Profit (FY20–FY25):
- FY20: ₹9 crore
- FY21: ₹2 crore
- FY22: -₹13 crore
- FY23: -₹40 crore
- FY24: -₹66 crore
- FY25: -₹41 crore
The share price of Aurum Proptech has declined from around ₹218 in May 2020 to ₹169 as of May 7, 2025—a substantial drop of about 23%. This price is significantly lower than its all-time high of ₹741, representing a 77% discount.
Kerala Ayurveda Ltd: A Legacy in Wellness
Established in 1945, Kerala Ayurveda Ltd specializes in Ayurveda products and services, including research, treatment centers, and clinics throughout India. With a market cap of ₹409 crore, the company is recognized for its extensive range of over 350 classical and proprietary formulations.
- Investment Insight: Veliyath holds a 5.18% stake in Kerala Ayurveda, equating to approximately 623,000 shares valued at ₹21.2 crore.
Sales performance has been commendable, rising from ₹59 crore in FY19 to ₹108 crore in FY24, which translates to a 13% compound annual growth rate. The EBITDA also witnessed growth, increasing from ₹5 crore in FY19 to ₹7 crore in FY24:
EBITDA Performance (FY19–FY24):
- FY19: ₹5 crore
- FY24: ₹7 crore
Despite the positive sales growth, net profits have posed challenges for the company:
Net Profit (FY19–FY24):
- FY19: ₹34 crore
- FY20: -₹5 crore
- FY21: ₹20 crore
- FY22: -₹1 crore
- FY23: -₹40 crore
- FY24: -₹66 crore
The share price of Kerala Ayurveda has seen a remarkable rise from ₹48 in May 2020 to ₹340 on May 7, 2025—an impressive 608% increase. However, the stock trades at a PE ratio of 341x, while the industry average hovers around 34x.
Evaluating Opportunities in Small Caps
Porinju Veliyath’s investments in lesser-known companies like Aurum Proptech Ltd and Kerala Ayurveda Ltd offer valuable insights into his investment philosophy.
- Aurum Proptech: Despite its strong sales growth and positive EBITDA, the stock’s price remains low, raising questions about its profitability.
- Kerala Ayurveda: While the company’s sales continue to climb and its stock price reflects investor confidence, the high PE ratio coupled with declining net profits presents a risk.
Investors should carefully assess these stocks, weighing the potential rewards against the inherent risks. Understanding Veliyath’s strategy could yield significant insights, but thorough research is essential to make informed decisions.
Disclaimer: This article serves educational purposes and is not a recommendation for investment. Always consult with a financial advisor before making investment choices.
Author’s Note: The writer has no financial interests in the stocks discussed.
