Big bull of Indian stock markets Rakesh Jhunjhunwala has been known to have an eye for quality when it comes to picking stocks.
Big bull of Indian stock markets Rakesh Jhunjhunwala has been known to have an eye for quality when it comes to picking stocks. Even when the market fell, Rakesh Jhunjhunwala managed to gain from a number of investments, be it his bet on agriculture input manufacturers or automotive conglomerates. One such gem in Rakesh Jhunjhunwala’s portfolio has helped him pocket Rs 7.8 crore in the April-June quarter. Bilcare Limited, a pharmaceutical packaging solution provider, was trading at a price of Rs 15 per share on April 1; the stock price was up to Rs 60 apiece at the end of June. However, the big bull is still in loss, when it comes to his investment gain from this stock.
Often touted as the Warren Buffett of India, Jhunjhunwala says that he believes in investing for a longer run. Evidently, he has been an investor in Bilcare Limited since 2004. During the 2008 market crash, Bilcare Limited tanked from trading at Rs 1,629 in January 2008 to Rs 308 in March 2009. Rakesh Jhunjhunwala held 17.5 lakh shares in the stock at the end of the January-March quarter of 2008 and he continued to hold those 17.5 lakh shares till the end of March 2009, according to the data available on BSE. The value of his holding at the end of March 2008 stood at roughly Rs 285 crore and the same had dropped to Rs 54 crore at March 2009.
Rakesh Jhunjhunwala holds 17,35,425 shares in Bilcare Limited as of June 30, 2020, which is 7.37% of the total share capital. On April 1, the worth of Rakesh Jhunjhunwala’s holding in the company was at Rs 2.6 crore. The stock surged 315% in the April-June quarter, taking the worth of big bulls shareholding to Rs 10.41 crore at the end of June. Rakesh Jhunjhunwala managed to earn about Rs 8.8 lakh per day from the Bilcare Limited in just three months. Along with him, his wife Rekha Jhunjhunwala has also been an investor in Bilcare Limited for a long time now. With 2,62,500 shares of the company, Rekha Jhunjhunwala managed to earn Rs 1.18 crore from the stock in the 90-day period. Combined the couple made close to Rs 9 crore from Bilcare Limited
In the previous quarter, Rakesh Jhunjhunwala was seen picking a number of stocks that have helped him enjoy the market rally between April and June. The big bull increased his stake in Rallis India to 10.3% at the end of June from 9% at the end of March. The stock managed to jump 60% in the last quarter. Jhunjhunwala has been very vocal about his love for pharma stocks, in the previous quarter he bought over 3% stake in Dishman Carbogen Amcis, along with his wife. The stock surged 140% between April and June. Another stock that entered Rakesh Jhunjhunwala’s portfolio in the previous quarter was Autoline Industries, an auto part manufacturer. Autoline Industries share price jumped 113% in the previous quarter, outperforming benchmark indices.