Renowned investor Porinju Veliyath picks stake in this Nomura-backed small-cap stock; counter hits new all-time high

This small-cap holding company – Max India Limited share price jumped over 11 per cent in two sessions after the renowned investor Porinju Veliyath bought stakes in the company. The stock on Monday touched a new lifetime high of Rs 112.4 per share, up over 6 per cent BSE intraday.

The counter, however, has pared gains and is trading flat at Rs 105 per share levels on the BSE as compared to a 0.8 per cent rise in the S&P BSE Sensex at the market close

Who is Porinju Veliyath

According to Bulk Deals Data on the NSE, the ace investor Veliyath has bought 2,30,000 equity shares in Max India at the weighted average price Rs 100.31 per share on the NSE. Max India is a holding company of Max Life Insurance, Max Healthcare, and Max Bupa Health Insurance.

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Porinju Veliyath is also a fund manager besides being a celebrity investor in the Indian stock market. He manages his own portfolio and the portfolios of investors through fund management firm Equity Intelligence India Private Limited.

Veliyath publicly holds 16 stocks with a net worth of over Rs 182.6 crore as of December 19, 2022, according to the stock analysis website trendlyne.com.

Max India FPIs Favourite

Max India Limited is backed by a global financial services group – Nomura. The global brokerage has nearly 1.5 per cent stakes or 6,40,000 equity shares in the company, as per the latest shareholding pattern.

Other Foreign Portfolio Investors (FPIs) such as Habrok India Master hedge fund have nearly 2 per cent stake, similarly, TVF Fund operated by TCF Capital also holds nearly 2.47 per cent stake in the company. The total FPIs holding in the company stands over 7 per cent as per the holding pattern.

Max India Share Price History

The stock of Max India has given incessant positive returns to the positional investors as in the last six months it has reported a surge of over 55 per cent from Rs 68 on June 20, 2022 to Rs 105 per share levels at present as against nearly 20 per cent rise in the S&P BSE Sensex.

Similarly, the scrip in the last one month has jumped over 13 per cent as compared to an over 1 per cent surge in the benchmark index, while in year-to-date (YTD), Max India shares have gained around 41 per cent rise on the BSE versus over 4 per cent up in the benchmark index.

Max India Outlook

The company’s latest bet is on the fast-emerging Senior Care space in India, which is already a $10-12 billion market, as per its investor presentation. The company expected demand for senior’s residences in India is expected to be 12X of the current supply and healthcare spends of senior household are 3-4X of others - driven by increased life expectancy and nuclear families, it said.

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