Porinju Veliyath buys stake in this small cap holding company

Renowned investor and fund manager Porinju Veliyath has picked up a stake in small-cap holding company Max India in the December quarter.

As per the latest shareholding data of the stock on the BSE, Porinju Veliyath held 4.5 lakh shares or 1.05% stake in the entity in the third quarter.

The market czar holds 15 stocks with an estimated net worth of over Rs. 173.4 crore says the latest shareholding data.

Some of his prime holdings are in stocks including, Gati, Shalimar Paints, Orient Bell, Kaya and Aurum Proptech.

Max India has reaped 33% return in the last 1 year, while in the last 3 months it has gained over 21%.

The stock’s 52-week low and high prices are Rs 67 and Rs 112, respectively. Currently, the share is trading 49% higher than its 52-week low price.

In the quarter ended September, FIIs also raised stake in the stock to 7.55% from the earlier 5.76% in the June quarter.

The low-debt company with zero promoter pledge has been logging gains in net profit with increasing profit margin.

Nonetheless, some of the shortcomings at the company as marked by Trendlyne are high interest payments compared to earnings, declining net cash flow, reduced book value per share over the last 2 years and fall in quarterly revenue as well as net profit year on year (YoY).

In the September quarter, the company’s net sales were down 30% to Rs 58.01 crore as against Rs 82.83 crore in September 2021.

Max India is the spun off company that operates in the insurance segment. It offers senior care insurance products and services.

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