At a time when the stock markets tremble with all headlines and most investors are only looking for quick profits, patience has become a rare commodity. But one of India’s Warren Buffetts, Porinju Veliyath, boasts of an investment approach that is probably that of swimming against the tide. Rather than following fleeting market trends, Veliyath has built a name for himself by carving his own way.
Two of his long-time holdings are ones which he has held for almost a decade have brought into focus the discipline Porinju has demonstrated in case of these stocks. Are these overlooked opportunities on the verge of substantial growth, or do they demonstrate the power of steadfast conviction in a company’s enduring value proposition?
The good news is that these trusted picks off India’s Warren Buffett, Porinju Veliyath, are currently trading at almost half of their all-time high prices, due to the crash.
Let us look at these stocks to see it is worth following them
Founded as Sarda Plywood industries pvt ltd 1957, Duroply Industries Limited’s erstwhile business of tea chest manufacture was in Jeypore (Assam) and in 1964, company began producing commercial plywood. The Company entered veneers business in 1994.
With a market cap of Rs 180 cr, Duroply’s product portfolio includes various types of plywood and blackboards, decorative veneers and flush doors. The products are sold under the company’s own established brand “DURO”.
India’s Warren Buffett, Porinju Veliyath and his wife Litty Thomas have both been holding a stake in the company since December 2016 (since records were available), per Trendlyne.com. As of the quarter ending in December 2024, Porinju holds 3.64% and Litty holds 1.90% stake in Duroply.
What is it that has kept Porinju’s interest and money in the company all these years?
The company’s sales were at Rs 228 cr for FY19 and it jumped to Rs 323 cr for FY24, which is a compounded growth of 7% in 5 years.
For 9MFY25, April to December 2024, the company has already recorded sales of Rs 265 cr.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Duroply was Rs 10 cr in FY19 and saw compound growth of about 4% as it went to Rs 12 cr in FY24. And between April and December 2024, it is already at Rs 11.65 cr.
When it comes to profits, Duroply has not seen any compounded growth in the last 5 fiscal years as the profits were at Rs 1 cr in FY19 and FY24. For 9MFY25, the profits are however at Rs 5 cr, signalling a possible comeback.
The share price of Duroply went from around Rs 27 in April 2020 to its price as on closing on 3rd April 2025, which is Rs 183. That’s a jump of about 578% in just 5 years.
If one had invested just 1 lac in the company 5 years back, it would today be about Rs 678,000.
The current price of Rs 183 is over a 50% discount from the stocks all-time high price of Rs 370.
The company’s share is trading at a current PE of 47x, which is similar to that of the industry median which is also close to 47X as well. The 10-year median PE for Duroply is also close to 41x, while the industry median for the same period is 31x
In the most recent investor presentation, the company’s Managing Director, Akhilesh Chitlangia said, “Our healthy bottom-line growth despite the industry still feeling the margin squeeze due to the higher input raw material cost manifests our sound operational efficiency. We hope to close the fiscal year with decent growth, which should gather momentum once the economy has braved the head winds, both internal and external.”
Incorporated in 1983, Ansal Buildwell Ltd is in the business of promotion, construction and development of integrated townships, residential and commercial complexes, multi storied buildings, flats, houses, apartments
With a market cap of Rs 82.5 cr, Ansal Buildwell has trade offices in Moscow, Russia; Dubai, UAE; Bangkok, Thailand and Dhaka, Bangladesh.
Porinju has held a stake in Ansal Buildwell through his company Equity Intelligence India Private Limited at least since March 2016 (since records were available), per Trendlyne.com. Holding as of the quarter ending December 2024 is 2.71%.
As for the financials, the company’s sales dropped from Rs 43.96 cr in FY19 to Rs 41.37 cr in FY24 which is a drop of 6%. And between April and December 2024, the company logged in sales of Rs 33.66 cr.
EBITDA also grew from Rs 2.09 cr in FY19 to Rs 18.66 cr in FY24, which is a compounded growth of 55%. And for the period of the 3 quarters between April and December 2024, it has recorded Rs 8.92 cr in EBITDA.
Ansal Buildwell booked losses of Rs 8.51 cr in FY19 and for FY24 the net profit was 14.51 cr, which is a compounded growth of 30%.
The profits and EBITDA seem to be strong points that have probably kept Porinju interested in the company
Ansal Buildwell’s share price was around Rs 21 in April 2020 which has grown to its current price of Rs 112 (As on closing of 3rd April 2025). This is a jump of 433%.
If one had invested Rs 100,000 back in March 2020, it would have grown to over Rs 5 lacs today.
At the current price of Rs 112, the company’s share is trading at a discount of 75% from its all-time high of Rs 460.
The share is however trading at a negative PE and hence the same is not available on screener.com. The industry median is however 32x.
The 10-year median PE for the company is 6.5x and the industry median for the same period is 24x.
The company was facing a CIRP petition (Corporate Insolvency Resolution Process) filed by IDBI Trusteeship Services Ltd. However, on 13th March 2025, NCLT (National Company Law Tribunal) allowed IDBI Trusteeship Services Ltd. to withdraw its CIRP petition. As a result, the insolvency proceedings were dismissed, which is a sigh of relief for Ansal Buildwell.
Future Multibaggers or Risky Picks?
The holding of Duroply Industries Ltd and Ansal Buildwell Ltd in Porinju Veliyath’s portfolio, held for nearly a decade, is very interesting to study and dig into, given that Porinju’s picks are in the news usually.
The financials for these companies offer a blend of challenges and opportunities— Duroply showing potential for profit rebound alongside consistent sales, and Ansal Buildwell demonstrating impressive EBITDA and profit growth despite sales pressures, especially with the CIRP petition dismissal—the real test lies in their ability to adapt to India’s ever-changing economic landscape.
Having said that, one cannot ignore the significance of Porinju Veliyath maintaining his stake for such an extended period. It could mean that he sees something deeper in these companies. What is that exactly, only time will tell. But keeping an eye on these stocks wouldn’t hurt.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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