Porinju Veliyath's Contrarian Bets: Why He's Holding on to Loss-Making Stocks

Porinju Veliyath is a super investor in the Indian stock market, known for his astute stock-picking skills and willingness to take risks. As the founder of Equity Intelligence India, he has a reputation for finding future multibaggers through deep research and a contrarian approach. His recent portfolio moves have raised eyebrows, especially with his continued holdings in Aurum Proptech and RPSG Ventures, despite their significant price declines.

Thanks to his track record, investors pay close attention when Veliyath makes a move. When an expert like him holds onto stocks that seem risky to the average investor, it sparks curiosity. What does he see that others are missing? Let's take a closer look at these two stocks.

1 Aurum Proptech: The ‘Dividends Disguised as Losses’ Story

Aurum Proptech Ltd, incorporated in 1996, specializes in software development and services for the real estate sector. With a market cap of Rs 1,260 crore, the company integrates tech expertise in real estate and operates PropTech products, services, and platforms catering to various segments of the real estate value chain.

Porinju Veliyath has held a stake in Aurum Proptech since the quarter ending December 2021. He currently owns 2% of the company under his personal portfolio and another 3.7% through Equity Intelligence India Private Limited, totaling a 5.7% stake worth Rs 79 crore.

The financials of Aurum Proptech raise several questions. Sales have grown at a compounded rate of 92% over the past five years, from Rs 10 crore in FY20 to Rs 264 crore in FY25. For H1FY26, sales stood at Rs 151 crore. EBITDA has shown a turnaround, growing from losses of Rs 1 crore in FY20 to profits of Rs 47 crore in FY25, with H1FY26 EBITDA at Rs 35 crore.

However, net profits have been a different story. After an anomaly in FY21, the company has struggled to return to profitability, recording losses in subsequent years. The share price of Aurum Proptech fell from around Rs 718 in December 2020 to Rs 175 as of December 12, 2025, a drop of almost 77%.

The significant drop in Aurum Proptech’s share price in December 2020 was due to a technical adjustment. After selling its US arm, the company distributed the proceeds via a record interim dividend of Rs 974 per share. The stock price corrected downward by the dividend amount on the ex-date, effectively transferring value to shareholders' bank accounts rather than wiping it out.

At the current price of Rs 175, the stock is trading at a discount of almost 77% from its all-time high. On an adjusted basis, including the dividend payoff, the stock could be considered a long-term winner.

2 RPSG Ventures: A Luxury Bet Trading at 400x PE

RPSG Ventures Limited (RVL), formerly known as CESC Ventures Limited, is a diversified company that operates in sectors such as IT services, business process management (BPM), fast-moving consumer goods (FMCG), Ayurveda formulations, real estate, sports, and restaurants. With a market cap of Rs 2,499 crore, RVL is part of the RP-Sanjiv Goenka Group (RP-SG Group), which has business interests in power, carbon black, IT-enabled services, consumer and retail, media and entertainment, sports, and more.

Porinju Veliyath has held a stake in RPSG Ventures since the quarter ending March 2020, under the EQ India Fund managed by Equity Intelligence India Private Limited. He currently holds a 1.4% stake worth Rs 34 crore. Fellow super investor Ashish Dhawan also holds a 3.7% stake in the company.

RPSG Ventures has seen steady growth in sales, with a compounded growth rate of 16% over the past five years. Sales increased from Rs 4,608 crore in FY20 to Rs 9,608 crore in FY25. EBITDA has also shown steady growth, from Rs 405 crore in FY20 to Rs 1,386 crore in FY25. However, net profits have been volatile, with significant fluctuations over the years.

The share price of RPSG Ventures jumped from around Rs 270 in December 2020 to Rs 755 as of December 12, 2025, a gain of 180%. At the current price, the stock is trading at a discount of about 45% from its all-time high of Rs 1,360. The company’s share is trading at a PE of 397x, much higher than the industry median of 26x, due to a recent net loss of Rs 52 crore in Q2 FY 2025-26.

In November 2025, RPSG Ventures acquired a 40% stake in FSP Design Private Limited (Falguni Shane Peacock brand) at an enterprise value of Rs 455.17 crore, marking its entry into the luxury couture segment. FSP’s FY25 revenue was Rs 91.75 crore, up from Rs 77 crore in FY24.

Is Porinju Veliyath Banking on a Big Turnaround?

Aurum Proptech and RPSG Ventures are the largest holdings in Porinju Veliyath’s current portfolio, indicating his confidence in these companies. Aurum Proptech is struggling to return to profitability, while RPSG Ventures has shown good growth in sales and profits but is currently overvalued at a 400x PE.

Will these stocks be a big turnaround story that adds another feather to Veliyath’s cap, or will they turn out to be big mistakes? Only time will tell. However, investors can add these stocks to their watchlist to monitor any red flags or opportunities that may arise.

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 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 organization 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. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.