Investment wizard Rakesh Jhunjhunwala is known for his multi-bagger stock picks. In 2017 alone, four of his top stocks have more than doubled investor wealth. However, there have been two stocks which have left even the ace investor staring at losses in 2017. Notably, shares of drug-maker Lupin Ltd has lost more than 40% since January.
One of his top ten holdings, Lupin Ltd has lost more than 12.5% in the last three 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 762 crore calculated at today’s NSE price, a loss of more than Rs 100 crore in near three months time, assuming no change in his holdings in the quarter so far. Lupin Ltd shares were trading at Rs 892, up by more than 1.3% on NSE.
Shares of CRISIL Ltd too have lost wealth for the ace investor. Rakesh Jhunjhunwala held 5.6% stake in the company or 40 lakh shares translating to 881.2 crore in January. At today’s prices of Rs 1,857.05, his stake in the company translates to Rs 742 crore, implying a loss of more than 140 crore in a year’s time. Shares of CRISIL Ltd have lost more than 18% in the year so far. As at the end of September-17, the ace investor still holds 40 lakh shares in the company translating to 5.58%.
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 in October this year, “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.” 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.
While he may have lost money in these stocks, Rakesh Jhunjhunwala says that temporary setbacks don’t bother him. “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 told CNBC TV18 in October.