Often called the Big Bull of Dalal Street, Rakesh Jhunjhunwala is known for spotting multibaggers, but evidently some of his bets can miss the mark as well.
Ace investor Rakesh Jhunjhunwala has been among the top investors to ride the bull markets of 2020 and increase in wealth manifold. A number of the stocks where Rakesh Jhunjhunwala holds a significant stake have doubled in value, while many have outperformed the benchmark indices significantly. However, there are some sections of his portfolio that have not been that convincing this year. Often called the Big Bull of Dalal Street, Rakesh Jhunjhunwala is known for spotting multibaggers, but evidently some of his bets can miss the mark as well. Here are some of the laggards of 2020 that Rakesh Jhunjhunwala holds.
Delta Corp: Rakesh Jhunjhunwala holds 2 crore equity shares of the firm since the end of the third quarter of the previous fiscal year. The Mumbai based gaming and hospitality firm owns various casinos across the country. 2020 has been a rough patch for the firm. In the second quarter of this fiscal year, Delta Corp reported a consolidated net loss of Rs 54 crore as revenue fell 80%. Shares of the firm have also faced the same fate, in the last one year shares of Delta Corp have plummeted 26.22%. Delta Corp has not recovered from the March sell-off and stocks are at their lowest since 2017. Since the end of last year, Rakesh Jhunjhunwala’s portfolio has lost Rs 86 crore in Delta Corp.
VIP Industries: Indian largest luggage manufacturer has been troubled with a sharp reduction in travels undertaken by people during a pandemic stricken world. Rakesh Jhunjhunwala held 72.15 lakh shares of the firm at the end of December last year. According to stock exchange data, the Big Bull now owns 75 lakh shares of the firm at the end of the previous quarter. In the past one year the stock price has dropped 14.25%. The fall in stock price would roughly mean that the billionaire investor has lost Rs 36.4 crore of his wealth in VIP Industries since the end of the previous year. However, brokerage and research firm Prabhudas Lilladher sees recovery in the firm’s business which has been helped by cost reduction.
Federal Bank: The private sector lender is also one of Rakesh Jhunjhunwala’s holdings that failed to shine in 2020. At the end of last year, the Big Bull held 5.68 crore shares of the bank, this has been trimmed slightly to 5.32 crore at the end of September this year. Between the end of last year and yesterday, the stock has tumbled 22.33%, now trading at levels last seen in 2016. The lender has resulted in a dent worth Rs 147 crore in Rakesh Jhunjhunwala’s portfolio. In October this year, global brokerage firm Julius Baer pinned a ‘Buy’ rating on the stock.
Karur Vysya Bank: The south India based lender fell to almost its lowest in a decade during the pandemic aided March sell-off. Rakesh Jhunjhunwala owned 3.35 crore shares of the bank at the end of December last year. During 2020 he increased his stake to 3.59 crore shares at the end of September. However, the share has seen a sharp upward trend in the last one week, it is still down 21% year-to-date. Karur Vysya Bank has resulted in a loss of Rs 34 crore for Rakesh Jhunjhunwala since the end of last year.