Indian benchmark index NSE Nifty 50 has fallen 7.8% so far in 2022, however, three of ace investor Rakesh Jhunjhunwala’s stocks have even underperformed the benchmark, falling up to 25% so far this year. These stocks include Titan Company, Star Health and Allied Insurance Company and Rallis India. Jhunjhunwala held 3.5 crore shares in Titan, 8.2 crore in Star Health and 1.3 core in Rallis India till quarter ended 31 March 2022. Domestic equities have witnessed steep correction amid extreme volatility as a result of FII selling, rate hikes by the US Fed and RBI, growing inflation, and continuous geopolitical tensions between Russia and Ukraine.
Titan: Buy
Titan share price has plunged 15% so far in 2022, compared to 7% fall in benchmark Nifty index. The stock was trading at Rs 2,102, down 1.64% on Wednesday. Till quarter ended March 2022, Rakesh Jhunjhunwala held 3.5 crore Titan shares in his portfolio, while his wife Rekha held 95 lakh shares. Collectively, the Jhunjhunwalas own a 5.05% stake in the company. Despite the steep correction in Titan shares, brokerages remain bullish on the Tata company stock as they expect Titan’s jewellery business to post consistent double-digit growth, and other businesses to scale-up fast. Sharekhan and Emkay Global have ‘buy’ rating on the stock with up to 36% upside seen going forward.
Star Health and Allied Insurance Company: Buy
Jhunwala-backed Star Health and Allied Insurance share price has tanked over 10% so far this year, underperforming Nifty. The stock was trading at Rs 676, down 3.07% on Wednesday. While Rakesh Jhunjhunwala held 8.2 crore shares till quarter ended March 2022, his wife Rekha held 1.7 crore shares of the insurance company. The couple jointly held 17.51% stake. Brokerages remain bullish on the stock despite the recent tumble as they believe that with Covid19-led abnormalities in the business behind,Star Health will embark on a long-term profitable growth journey by leveraging its moat. Emkay Global, Motilal Oswal Financial Services, CLSA have maintained a ‘buy’ call on the stock, and see up to 35% potential rally in one year.
Rallis India: Reduce/Hold
Rallis India shares price has plunged over 25% so far this year. Shares of Rallis India tanked 9%, a day after the company reported a consolidated net loss of Rs 14 crore in March quarter. Rakesh Jhunjhunwala owned 1.3 crore shares till 31 March 2022, while his wife Rekha held 51 lakh shares. The couple jointly holds 9.81% stake in the company. Brokerages have a mixed outlook on the stock. ICICI has a ‘reduce’ call on Rallis India shares with a target price of Rs 235 (15% upside). Emkay Global also has a ‘Hold’ rating on the stock with a target price of Rs 254 (34.8% upside).
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