In a climate where stock markets are often unpredictable and many investors chase quick returns, the essence of patience stands out as a valuable trait. One prominent figure in India’s investment landscape, Porinju Veliyath, often referred to as the country’s equivalent of Warren Buffett, adopts a unique strategy that diverges from conventional market trends. His disciplined investment philosophy shines through in two long-held stocks, showcasing a steadfast belief in the enduring value of these companies.

Investment Insights from Porinju Veliyath

Veliyath’s approach urges us to explore whether these under-the-radar stocks are poised for significant growth or if they merely exemplify the strength of unwavering confidence in a company’s fundamentals. Currently, Porinju’s favored picks are trading at nearly 50% below their peak prices, a situation that could present a golden opportunity for investors willing to look beyond the surface.

Exploring Duroply Industries Ltd (DIL)

Established in 1957 as Sarda Plywood Industries Pvt Ltd, Duroply Industries Ltd has a rich history in the manufacturing sector. Initially focused on tea chests in Jeypore, Assam, the company pivoted to plywood production in 1964 and expanded into veneers in 1994.

With a market capitalization of ₹180 crore, Duroply’s diverse offerings include various plywood types, decorative veneers, and flush doors, all marketed under the brand name “DURO.” Both Porinju Veliyath and his wife, Litty Thomas, have maintained stakes in Duroply since December 2016. As of the end of December 2024, Porinju held 3.64% while Litty owned 1.90% of the company.

Steady Growth Indicators

Duroply has demonstrated steady growth over the years. In FY19, sales reached ₹228 crore, increasing to ₹323 crore by FY24, reflecting a compounded annual growth rate of 7% over five years. During the first nine months of FY25, the company has already recorded ₹265 crore in sales.

• EBITDA Growth: The company’s EBITDA rose from ₹10 crore in FY19 to ₹12 crore in FY24, marking a 4% compound growth. Interestingly, for the first three quarters of FY25, EBITDA stands at ₹11.65 crore.
• Profit Insights: Despite flat profits of ₹1 crore over the last five fiscal years, a notable increase to ₹5 crore in 9MFY25 suggests potential for recovery.

Duroply’s stock price soared from approximately ₹27 in April 2020 to ₹183 by April 3, 2025, a staggering increase of 578%. An investment of ₹100,000 five years ago would now be worth around ₹678,000. However, the current price of ₹183 is still 50% lower than its all-time high of ₹370.

Ansal Buildwell Ltd (ABL)

Founded in 1983, Ansal Buildwell Ltd focuses on developing integrated townships and various residential and commercial properties. With a market cap of ₹82.5 crore, the company operates trade offices in locations including Moscow, Dubai, Bangkok, and Dhaka.

Porinju has had a stake in Ansal Buildwell through Equity Intelligence India Private Limited since at least March 2016, holding 2.71% as of December 2024.

Financial Performance and Recovery

Ansal Buildwell’s sales saw a slight dip from ₹43.96 crore in FY19 to ₹41.37 crore in FY24, a decrease of 6%. However, the company recorded ₹33.66 crore in sales for the first nine months of FY25.

• EBITDA Growth: The company’s EBITDA skyrocketed from ₹2.09 crore in FY19 to ₹18.66 crore in FY24, showcasing an impressive 55% compound growth rate. For the nine months ending December 2024, EBITDA was recorded at ₹8.92 crore.
• Profit Surge: After incurring losses of ₹8.51 crore in FY19, Ansal Buildwell turned around to a profit of ₹14.51 crore in FY24, indicating a 30% compounded growth.

Ansal Buildwell’s share price climbed from around ₹21 in April 2020 to ₹112 by April 3, 2025, marking a 433% increase. A ₹100,000 investment made in March 2020 would have grown to over ₹500,000 today.

Currently priced at ₹112, the stock is trading at a 75% discount from its peak of ₹460. The company recently received good news with the National Company Law Tribunal allowing the withdrawal of a Corporate Insolvency Resolution Process petition, providing a significant relief for its future operations.

Conclusion: Future Prospects of Duroply and Ansal Buildwell

The long-term holdings of Duroply Industries and Ansal Buildwell in Porinju Veliyath’s portfolio offer a fascinating glimpse into his investment philosophy. Both companies present a blend of challenges and potential rewards—Duroply with its consistent sales growth and Ansal Buildwell with its remarkable profitability turnaround.

Given Porinju’s commitment to these stocks over nearly a decade, it hints at a deeper understanding of their potential. Investors may find it worthwhile to monitor these companies closely, as the evolving economic landscape in India could reveal new opportunities.

For more investment insights, consider exploring other articles related to market trends and investment strategies. Remember, it’s crucial to conduct thorough research or consult with an investment advisor before making any financial decisions.