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Porinju Veliyath bets big on e-commerce Companies

Porinju Veliyath continues his shopping like there is no tomorrow!!!. Data shows that he is not short of money. What our guess is that, wealthy kerala NRI’s are betting high on Porinju Veliyath and his PMS firm – Equity Intelligence and pouring money. Below are the two e-commerce companies that Porinju is heavily betting on.

Palred Technologies
Palred Technologies owns the online store which is the largest retailer of HDMI cables in India. The company is following the “inventory” model and not the “market place” or “aggregrator” model because the former offers higher margins. Company is seeking to achieve a turnover of Rs. 500 crore in the next three years. 
The stock was identified by Ashish Chugh who has excellent track record of identifying hidden gems in Indian stock market. Porinju Veliyath waited for none and bagged 2 lakhs share @ Rs. 23.50. In just 45 days, stock reached Rs. 46. Currently the stock is suspended from trading in pursuant to reduction of capital. Company will refund the surplus capital i.e. Rs. 16.50/- per share to the eligible shareholders consequent upon reduction of capital by 60%.

This shows company is becoming more popular
Along with Porinju, other big names like Ashish Dhawan of ChrysCapital(13,42,641 shares), Six Rivers Group (10,84,742 shares), Amol Chauhan (7,45,000 shares), Parle Biscuits (7,00,000 shares) and Passage to India Master Fund (6,38,000 shares) are also foreseeing bright future for this company.

IZMO alias Logix Microsystems
Logix Microsystems offers software and web solutions to automotive dealers. The company provides customized web marketing platforms, online stores etc. Company has a client base of over 600 including many fortune 500 clients. It offers hi-tech Automotive e-retailing solutions in U.S.A, Mexico, Europe, and Asia. Porinju bought his first 1 lakh shares of Logix Microsystems at Rs.36.4 in February 2015.As of today he holds 280,000 shares at an average price of around Rs. 45. 
When conservative investors are reluctant to buy e-commerce companies due to high valuations, lets wait and see whether the conviction of Porinju finally make smile.

Tail End: There was a recent news that remittances by NRIs to Kerala cross Rs 1 lakh crore. Most of the money simply goes into fixed deposits or real estate. Porinju would be dreaming, If he can divert 1% of that money to his PMS, from the current 220 crores, he can multiply his business 4 times. If you land Cochin international airport, you will be invited by the smiling facing of Porinju Veliyath in bill boards inside the airport. So Porinju is actually aiming it!!

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