Orient Bell, a small-cap stock in the portfolio of Porinju Veliyath, is looking quite promising. The stock is up 125% over the last year. It us up 25% in just the last five days.
The company is engaged in the manufacture of ceramic and vitrified tiles. The growth in the tiles market will continue to be driven by growth in real estate and housing sector, rise in disposable income, growth in renovation and remodelling activities and renewed interest in “DIY trends in home improvement”.
Orient Bell also appears to be financially stable. CRISIL has upgraded the ratings of the Company on its bank facilities to ‘CRISIL A/Stable/CRISIL A1’ from ‘CRISIL A-/Stable/CRISIL A2+’. CRISIL stated that the company will continue to benefit from its established market position and comfortable financial risk profile.
The upgrade factors improvement in the overall business and financial risk profiles of Orient Bell. Operating performance has improved by revenue growth of around 30 per cent during fiscal 2022 from previous fiscal, backed by strong brand equity, and improved sales contribution from value added-products leading to better operating profitability, Crisil said in its report.
Porinju Veliyath is a major shareholder of Orient Bell with a holding of 704,512 equity shares which constitutes 5 per cent of the total equity capital.