Ace investor Rakesh Jhunjhunwala’s stock picks seldom go wrong. In fact, earlier this month, his favourite scrip made him richer by more than Rs 875 crore in a single trading session, after Titan Company Ltd shares surged on the back of stellar Q2 results. Just last month, Rakesh Jhunjhunwala had revealed in an interview to ET Now that Titan is his favourite stock. However, there have been a few stocks in the latest quarter which has left even India’s Warren Buffett staring at losses in excess of Rs 200 crore in just two months time.
One of his top ten holdings, Lupin Ltd has lost more than 18% in the last two months alone. According to data from BSE, Rakesh Jhunjhunwala held 1.89% stake in the company as at the end of September-17. Notably, the investing icon had increased his stake from 1.76% as at the end of July quarter. At the end of September-17, Rakesh Jhunjhunwala held 85,48,105 shares of Lupin Ltd amounting to Rs 866.13 crore. Due to the plunge in the value of shares, his stake stands at Rs 706.8 crore calculated at today’s BSE price, a loss just shy of Rs 160 crore in two months time, assuming no change in his holdings in the quarter so far.
At a time when most markets experts are staying away from the pharma sector, Rakesh Jhunjhunwala has been increasing stake in the space. In an interview to CNBC TV18, Rakesh Jhunjhunwala said last month, “Everything that could go wrong for the pharma sector, has gone wrong. The US market got very competitive. Rupee depreciated, and the pharma companies had very bad sales domestically due to GST. I would say the worst in behind us. The rebound will depend a lot on the individual companies.”
Karur Vysya Bank is another stock where Rakesh Jhunjhunwala has lost money in the last two months, after increasing stake in the company. Notably, Rakesh Jhunjhunwala has increased his stake to 4.03% in the latest quarter from 3.56% earlier, data from BSE showed. He held 2,45,34,485 shares in the company, translating to Rs 328 crore as at the end of September-17. Valued at today’s prices, his holding in the company stands at Rs 277.48 crore, implying a loss of Rs 51 crore, assuming no change in holdings since September-17. In total, these two scrips alone have lost him more than Rs 210 crore.
Last month, in an interview to CNBC TV18, Rakesh Jhunjhunwala said that he’s not worried about temporary setbacks. “One thing which keeps me apart is that I have got guts. I may have Rs 1,000 in my bank but if I think the deal is worth a crore — I will do it. I have guts and setbacks don’t put me off. I feel them for 10 minutes but then I am ready to fight back,” Rakesh Jhunjhunwala said in the interview.