Ace investor Rakesh Jhunjhunwala is known for his ability to pick multibaggers, and one such stock, the shares of Edelweiss Financial Services has more than tripled investor wealth in 2017. Rakesh Jhunjhunwala’s has now increased his stake to 1.1% or 1 crore shares in Edelweiss Financial Services, as at the end of December-17 quarter from 1.05% stake as at the end of September-17, data from BSE showed. The shares were trading at Rs 288.4 on NSE this morning. Translated at current prices, Rakesh Jhunjhunwala’s stake amounts to Rs 288 crore.
Global brokerage firm Credit Suisse is bullish on the shares of Edelweiss Financial Services, after the company reported stellar Q3 results for the quarter ended December-17. Edelweiss Financial Services reported 52.33% jump in consolidated net profit at Rs 236.39 crore for the third quarter ended December 2017, as compared to Rs 155.18 crore in the corresponding quarter a year ago. Credit Suisse has raised the target price on the shares to Rs 340, from Rs 330 earlier. The firm’s target price implies an upside of more than 18% from the current market prices. Credit Suisse says that the company continues to offer high earnings growth visibility. Total revenue increased by 29.07% to Rs 2,081.33 crore in the said quarter from Rs 1,612.47 crore in the December quarter of 2016-17, the company said in a BSE filing.
Credit Suisse said that the company may be looking at acquisitions as activity levels picked up in bankruptcy processes. “We are very bullish about SME lending in particular, we are greatly excited about the scaling up of our wealth management businesses and the increasing contribution they are making without requiring additional capital,” EFS chairman Rashesh Shah said in a statement.
Income from the company’s fund based business which includes lending to small and medium enterprises, mortgages and loans against securities also increased 23% to Rs 1,386 crore in December 2017 from Rs 1,130 crore a year ago.
Rakesh Jhunjhunwala has reportedly bid for Star Health & Allied Insurance, the first stand-alone health insurance company. According to a report in the Times of India, Star Health & Allied Insurance carries a price tag of $1 billion. Interestingly, the company has also received bids from Azim Premji-led PremjiInvest, besides six other companies who are eyeing the insurer. The newspaper reported that bids were received from Kedaara Capital, WestBridge, Temasek and Prudential and strategic investors including ICICI Lombard and HDFC General Insurance.