Investment maestro Rakesh Jhunjhunwala is the 53rd richest person in India with a net worth of $ 2.4 billion or Rs 15,600 crore, according to Forbes. His portfolio value topped a staggering Rs 10,000 crore in March this year, and includes well known stocks such as Titan, CRISIL, Aurobindo Pharma, Federal Bank, Escorts Ltd, Lupin Ltd, Karur Vysya Bank et al. As far as his portfolio goes, “It’s a Happy Diwali”, quipped India’s Warren Buffett in a recent interview to CNBC TV18.
Interestingly, the first stock which Rakesh Jhunjhunwala bought was Tata Tea, way back in 1985. “The first stock I bought was Tata Tea, the first stock where I made big money was also Tata Tea.” Rakesh Jhunjhunwala had bought 5,000 shares of Tata Tea at Rs 43 each. Within three months time, he sold the shares at Rs 143, making a profit of Rs 5,00,000. “I invested Rs 5 lakh at that point in time back in 1985 (in Tata Tea) which is worth Rs 50 crore now,” Rakesh Jhunjhunwala told the TV channel last week. In fact many of Rakesh Jhunjhunwala’s holdings have been held for more than a decade! We take a closer look into the portfolio of the Big Bull of the Indian stock market and what he bought or sold in the July-September quarter of 2017.
Just this week, Rakesh Jhunjhunwala revealed to ET Now than Titan Ltd is his favourite stock. He bought 6 crore shares of Titan in 2002-03 at an average price of around Rs 3, according to media reports. On Thursday, Titan Ltd closed at Rs 602 on NSE. Rakesh Jhunjhunwala held more than 8.3% stake in Titan Ltd, translating to more than 804 lakh shares as at the end of June 2017. In the September quarter, the ace investor has reduced his stake to 8.06%. A Tata group stock, Titan is one of the most prominent stocks in Rakesh Jhujhunwala’s portfolio and accounts for more than Rs 4,000 crore of his holdings.
At a time when most markets experts are staying away from the pharma sector, Rakesh Jhunjhunwala has been increasing stake in the space. In Lupin Ltd, he has increased stake to 1.89% as on 30th September 2017, as against 1.76% in the previous quarter, even though the drugmaker had actually posted a 60% slump in profits for the first quarter. According to FE Online’s estimates, Lupin Ltd accounts for roughly Rs 800 crore in the portfolio.
Similarly, in August this year, Rakesh Jhunjhunwala’s wife picked up 0.9% stake in Fortis Healthcare for an estimated Rs 60 crores through an open market transaction. In his interview to CNBC TV18, Rakesh Jhunjhunwala said, “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.”
Rakesh Jhunjhunwala held around 1.08% stake in Aurobindo Pharma in May this this year, which accounted for roughly Rs 350 crore. In the latest filing by the company, Rakesh Jhunjhunwala’s holding does not feature in the public shareholders having greater than 1% share in the company, implying that the investing icon may have reduced his stake to below 1% in the latest quarter.
Rakesh Jhunjhunwala has reduced his stake to 1.85% in Federal Bank, from the earlier 2.18% as at the end of June-2017, translating to Rs 450 crore in the portfolio. Holdings remained unchanged in Karur Vysya bank at 3.56% on September 30th 2017. Other notable financial stocks include Geojit Financial Services, where his holdings stood at 1.91%, up from 1.9% in June-17. Notably the shares have nearly quadrupled in the year so far! He also holds more than 1.05% stake in Edelweiss Financial Services as at the end of September quarter. India’s Warren Buffett is bullish in the whole “financialisation of savings theme” and says that “Indian money into the market is going be a tsunami! “I think it’s not even reached a flood,” Rakesh Jhunjhunwala told CNBC TV18 in a recent interview. Investors have taken to mutual fund investing in a big way. After Mutual Funds registered their highest ever inflows of Rs 20,362 crores in August, the inflows in the month of September totalled Rs 18,936 crore.
Other changes in September quarter
Rakesh Jhunjhunwala increased his stake in Prakash Industries to 1.64 from per cent at the end of the September quarter, from 1.01 per cent at the end of the June quarter. His stake in Rallis India at 9.93% and NCC at 2.09% remained unchanged in September. Stake in CRISIL stood at 5.58%, down from 5.6% as at the end of June-2017. As at March this year, his holdings in CRISIL amounted to Rs 801 crore. In Escorts Ltd, the holdings remained unchanged at 9.16% valued at above Rs 600 crore. Notably, the shares have zoomed by more than 142% since January.
Even as we bring you a glimpse of his portfolio, and the important changes he’s made, it’s imperative to understand as to what sets him apart. In his own words — Ability to take risk. “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 explained in an interview to CNBC TV18 last week.