Kshitij Anand Moneycontrol News
The big bull of D-Street, Rakesh Jhunjhunwala of Rare Enterprises is well known for his skills to pick hidden gems. The billionaire investor who is often referred as the Warren Buffett of India is the 53rd richest person in India, with a net worth of USD 2.4 billion (as on August 2017), according to Forbes.
The buy or sell moves by market mavens such as Jhunjhunwala is tracked by investor community very closely. A close look at the stocks with more than 1 percent holding held in his portfolio under the name of Rakesh Jhunjhunwala and his family members rose up to 200 percent in the year 2017.
A Chartered Accountant by qualification, Rakesh Jhunjhunwala started his journey as an investor back in the year 1985 with a capital of $100 when the BSE Sensex was at 150 which has now risen to 32,000.
Top stocks which are part of his portfolio include names like ION Exchange, Prakash Industries, Escorts, VIP Industries, Titan Company, Anant Raj Industries, Crisil, Delta Corp, Aurobindo Pharma etc. among others.
Among the top performing companies of 2017, Geojit Financial Services rose 206 percent, Jaiprakash Industries which is the new entrant rose 213 percent, Edelweiss Services rallied 126 percent, and Escorts gained 108 percent in the same period.
The big bull of D-Street who has been a firm believer in the India story is of the view that bull market corrections are severe and short-lived - sharp, severe, and short-lived.
The Nifty50 index after rallying nearly 1,900 points, or over 23 percent so far in the year 2017 witnessed profit booking decline this past week. However, intermediate corrections are part of any bull markets and investors should not get swayed by their emotions because the peak is still far away.
In his recent interview with CNBC-TV18 earlier in the year, Rakesh Jhunjhunwala said that investors should not get worried about one day of correction as "we are far away from the peak". Nifty is more likely to double in the next 4-5 years, he said.
The bull market will only eclipse when three factors are present — valuation froth, commitment froth and when there is bad news, he explained
Elaborating on them, Jhunjhunwala said just by valuation froth, bull markets will not end. By commitment froth, it means that there is a lot of leverage buying, which is still not there. The third factor is bad news and when investors sell on the bad news, there is no buyer.
Top Holdings:
Top holdings of the big bull are placed in stocks like Mandhana Retail in which he holds a little over 12 percent, according to Capitaline data, followed by Viceroy Hotels in which Jhunjhunwala has invested by about 12.2 percent, and in Escorts he holds 9.1 percent.
Stocks in which he holds less than 2 percent include names like Geojit Financial Services, Karur Vysya Bank, Agro Tech Foods, Titan Company, ION Exchange, Aurobindo Pharma, Edelweiss Financial Services, Prakash Industries, Man Infra, TV18 Broadcast, and Viceroy Hotel.
Entrants & Exits:
Jhunjhunwala picked up 1.26 percent in Jubilant Lifesciences in the quarter and increased his holding to 1.12 percent and in Aurobindo Pharma from 1.08 percent.
The stocks where he cut holdings include Geojit Financial Services, Delta Corp, Federal Bank, Karur Vysya Bank, Titan Company, Tata Motors DVR, TV Broadcast, Aurobindo Pharma, Edelweiss Financial Services, and Prakash Industries, Capitaline data showed.
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