September quarter report: Rakesh Jhunjhunwala raises stake in 4 firms, pares exposure in Titan Company

Small and midcap stocks that bucked the trend in the September quarter were on the radar of ace investor Rakesh Jhunjhunwala as well who raised stake in four firms and reduced it marginally in Titan Company, data collated by AceEquity. He left his stake unchanged in 10 companies.

Indian markets reversed the trend after hitting a low in March to reclaim crucial resistance levels on the way up. The Nifty50 rallied over 9 percent in the September quarter and there was plenty of action in individual stocks in the small & midcap space.

Jhunjhunwala invests in Indian companies under the following names: Jhunjhunwala Rakesh Radheshyam, Jhunjhunwala Rekha Rakesh, Rakesh Jhunjhunwala (in a personal capacity), Rekha Rakesh Jhunjhunwala and RAKESH JHUNJHUNWALA (as a partner of RARE Enterprises).

Jhunjhunwala and RARE Enterprises increased stake in NCC, Agro Tech Foods, and long-time favourite Lupin, the data as on October 16 shows. He also raised his stake to over 1 percent for the first time in Tata Motors.

Going by the year-to-date figures, Tata Motors has been an underperformer but has recouped most of the losses in the last six months, rallying by about 80 percent since March, data shows.

On October 1, Tata Motors reported a 5.09 percent increase in sales to 1,10,379 units in the second quarter of the current fiscal. The company sold a total of 1,05,031 units in the same period last fiscal, Tata Motors said in a statement.

Here is a list of 15 companies in Rakesh Jhunjhunwala's portfolio that have released shareholding data for the September quarter as of October 16, 2020. Please note that this may or may not be an exhaustive list of Jhunjhunwala’s portfolio but only a list of companies in which he holds over 1 percent stake.  

The big bull reduced stake in Titan Company after his wife, Rekha, sold 50,000 shares in the September quarter, according to a regulatory filing.

The recent business updated posted by the company is encouraging. The management has reassured investors that the business is returning to normal, thanks to the recovery in sales in its jewellery division in the September quarter.

Titan's major revenue and EBIDTA come from the jewellery segment, which is highly sensitive to the macro-economic scenario, brokerages say. Reports indicate that Tanishq revenue has recovered to 90 percent of pre-COVID levels, significantly ahead of consensus expectations.

Also Read: Brokerages place bets on Titan, see double-digit upside in the stock

Jhunjhunwala kept his stake constant in 10 companies. Nine of the companies that reported their shareholding data have given positive returns of up to 155 percent in the last six months.

Companies in which Jhunjhunwala maintained his stake are Firstsource Solutions, Geojit Financial Services, MCX, Man InfraConstruction Ltd, CRISIL, Aptech, Orient Cement, The Indian Hotel Company, Fortis Healthcare and Anant Raj.

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