1. Rakesh Jhunjhunwala holds more than 9% in this midcap stock; HSBC says buy

Rakesh Jhunjhunwala holds more than 9% in this midcap stock; HSBC says buy

Investment maestro Rakesh Jhunjhunwala’s holdings is skewed in favour of just ten stocks which account for more than half of the total portfolio value.

By: | Published: December 8, 2017 10:26 AM
Escorts Ltd features among Rakesh Jhunjhunwala’s top holdings. (Image: Reuters)

Investment maestro Rakesh Jhunjhunwala’s holdings is skewed in favour of just ten stocks which account for more than half of the total portfolio value, among the companies in which he holds at least 1% stake. While Titan Company Ltd, wherein he holds more than 8% stake as at the end of September, is his favourite scrip, Escorts Ltd too, features among his top holdings. Rakesh Jhunjhunwala had revealed in an interview to ET Now that Titan is his favourite stock. Notably, Rakesh Jhunjhunwala holds 9.16% stake or 1,12,25,000 shares of Escorts Ltd as at the end of the latest quarter. At current market prices, his stake in Escorts Ltd translates to a staggering 765.65 crore. HSBC Securities has initiated coverage on the shares with a buy rating.

Track live stock prices: Titan Company Ltd; Escorts Ltd

HSBC Securities has a target price of Rs 835 on the shares of Escorts Ltd. The shares were trading at Rs 682.1, up by more than 2.6%. HSBC Securities’ target price implies an upside of more than 22% from the current market prices. Notably, the shares have returned a staggering 123% in the year so far. The Farm equipment manufacturer Escorts LTd had reported a 6.51 per cent increase in its tractor sales at 5,119 units for November.

The company had sold 4,806 tractors in the same month a year ago. HSBC Securities says that the new product launches of the company will boost market share, margins and profit. The research firm says that the construction equipment division is likely to break-even in FY-18.

Escorts Ltd had reported nearly two-and-half fold increase in its standalone net profit to Rs 77.56 crore for the second quarter ended 30 September, riding on robust sales. The company had posted standalone net profit of Rs 31.29 crore in the same period last fiscal, Escorts Ltd . Revenue from operations during the period under review stood at Rs1,211.69 crore. It was Rs 982.7 crore in the same quarter last fiscal.

The figures are not comparable due to goods and services tax (GST) implementation from July this year, Escorts Ltd had said in a company statement. “Sustained economic focus and support to farm mechanisation, agro innovation and smart city infrastructure is a strong push to the industry and market demand,” Escorts chairman Rajan Nanda had said.

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