Legendary investor Rakesh Jhunjhunwala passed away early Sunday morning. Often referred to as the ‘Big Bull of Dalal Street’, Jhunjhunwala’s portfolio was looked up by many. Known for understanding of the stock market and prediction abilities, Jhunjhunwala’s portfolio of 33-odd stocks did not bet heavily on autos. However, some of his investments in the auto sector in the past few months surely created a lot of buzz.
Jhunjhunwala held 1.39 percent stake in Escorts Kubota. While he had this counter since 2015, he had trimmed his stake in it. However, after the company went through corporate restructuring, he re-entered the stock in recent months. Though the maveric investor was often quoted as saying, “Never invest at unreasonable valuations. Never run for companies which are in limelight,” the stocks that he bought surely garnered a lot of the limelight he avoided in buying them. Escorts Kubota was no exception to that rule. In early August, the script that has seen over 250 percent gains in 3 years, was trading above its 50-day and 100-day moving averages. Japanese tractor and heavy equipment maker Kubota own 44.8 percent stake in this company and FIIs have increased stake to 4.24 percent in recent months.
The Tata Motors rebound story is another interesting Dalal Street developments in the recent times. Though Jhunjhunwala trimmed down his holding to 1.09 percent from 1.18 percent, this stock saw 45 percent runup over a year. The company reported strong growth in domestic business and its big bet on electric mobility are seen as the primary catalyst driving the investment interest in the scrip.
Autoline Industries and Ion Exchange are some of he other noteworthy auto stocks in Late Jhunjhunwala’s portfolio. However his most talked about splash in mobility sector till date is the low-cost airline Akasa Air.
While Dalal Street will surely miss the iconic investor’s spunk and ready wit, the expectation is that Akasa Air may continue “inspiring to rise.”
