This Rakesh Jhunjhunwala stock available for below Rs 100! May gain 50% in coming days

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Published: June 26, 2018 12:53:01 PM

The legendary investor Rakesh Jhunjhunwala is one of the most admired persons when it comes to investing and getting the stock markets direction. Rakesh Jhunjhunwala owns a bunch of equity shares of several companies commanding more than 1% of the total paid-up capital.

Rakesh Jhunjhunwala owns 3.47 crore equity shares of The Federal Bank as of 31 March 2018. (Image: Reuters)

The legendary investor Rakesh Jhunjhunwala is one of the most admired persons when it comes to investing and getting the stock markets direction. Rakesh Jhunjhunwala owns a bunch of equity shares of several companies in commanding more than 1% of the total paid-up capital. Rakesh Jhunjhunwala has once said that “Give your investments time to mature. Be Patient for the World to discover your gems.”

There is a stock in which Rakesh Jhunjhunwala owns nearly 2% of the total shareholding and surprisingly, the stock is available for below Rs 100. Shares of Kochi-headquartered The Federal Bank Ltd have fallen about 24% from January 2018 so far. According to the latest shareholding data available with the stock exchange, Rakesh Jhunjhunwala owns 3.47 crore equity shares of The Federal Bank, equivalent to 1.79% of the total paid-up capital, at the end of 31 March 2018.

Shares of Federal Bank are trading around a level of Rs 83 (current market price: Rs 82.75 per equity share). The research and brokerage company Motilal Oswal Securities has given a ‘buy’ rating to the stock of Federal Bank with a potential upside of as much as 53% to a target price of Rs 127.

So far in the current year 2018, India’s equity markets have advanced relatively well as the benchmark Sensex index has returned about 10% with blue-chip shares of TCS, Kotak Mahindra Bank, M&M, Infosys, HUL, IndusInd Bank, HDFC Bank and HDFC gaining more than 10%. Interestingly, the benchmark index returns of big market players such as Dow Jones Industrial Average of the United States, Shanghai Composite Index of China and Nikkei 225 of Japan are negative.

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