When it comes to value investing and picking the right themes, there is none other than Porinju Veliyath, of Equity Intelligence India, who says there is still a lot of opportunities in Indian market right now as the economy is changing structurally which is giving way to value migration.
The man, who is known for spotting small and midcap stocks at the right time, says he sees over 2 dozen themes which are yet to be explored.
“There are a lot of themes in the economy in a country like India which is changing structurally. When the economy changes from black to white, from unorganised to organised results in value migration in numbers of pockets and that is where investors can make 10-baggers and 20-baggers in coming years,”
There is a lot of opportunity in India and if investors are able to pick the theme at the right time, wealth creation will happen. One such opportunity lies in the real estate sector,
Real estate is a very important sector where the value migration is happening. A similar theme was visible in the banking space a few years back when private sector banks created wealth and something similar has already started happening in the real estate sector.
Real estate is a very important industry for the stock market going forward. But, why now?
If you remember real estate was considered to be an ugly sector where mostly black money dealings use to take place and was not organised earlier, but now with the introduction or RERA, REIT, or Real Estate Investment Trust, and participation of PE players is making the sector attractive.
There is a lot of structural change which is happening in the sector. “The governments push towards housing, and entry of new players and new IPOs to name a few,”
The market share of real estate companies will go considerably in Sensex, Nifty or BSE 500 index, said Porinju. He holds Godrej Properties, Oberoi Realty and Sobha Developers in his portfolio and all of them have doubled.
Media is another sector where value migration is happening and hence investors should be watchful.
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