Increase and decrease in holdings of stocks in Rakesh Jhunjhunwala portfolio
A study of the stocks in Rakesh Jhunjhunwala’s latest portfolio reveals that there are many additions and deletions.
Titan has given an excellent return to Rakesh Jhunjhunwala’s portfolio with a gain of 48%.
The Q3FY17 results of Titan were very good. The standalone net profit increased 13 per cent to Rs. 255.75 crore compared to Rs 226.15 crore on a YoY basis.
Titan is doing well because demonetization led to a shift from the unorganized sector to the organized sector.
There will also be benefit to Titan as a result of the GST.
Increase in stake in Titan Co by Rakesh Jhunjhunwala
Rakesh Jhunjhunwala has increased his holding in Titan from 75,206,220 shares (8.47 per cent) in December, 2016 to 76,026,220 shares (8.57%) as of 31st March 2017.
The holding in Titan is worth Rs. Rs 3,644 crore.
McNally Bharat Engineering – Addition to portfolio
Rakesh Jhunjhunwala has bought 23,11,349 shares in McNally Bharat Engineering as of 31st March 2017.
FirstSource Solutions – increase in holding
Rakesh Jhunjhunwala increased the holding in FirstSource Solutions to 2,50,00,000 shares as of 31st March 2017.
Prozone Intu Properties – increase in holding
The holding in Prozone Intu Properties has been increased by Rakesh Jhunjhunwala to 2.46 per cent during the March quarter from 2.06 per cent at the end of December quarter.
Radhakishan Damani also has a big holding in Prozone Intu Properties. Radhakishan Damani holds 19.7 lakh equity shares (representing 1.29 percent stake) of Prozone Intu Properties during July-September 2016 quarter.
The company is engaged in real estate development and leasing. It has zero debt and cash of Rs 50-60 crore on its books.
The other shareholders in Prozone Intu Properties are Acacia Partners, Cavendish Asset Management, Nailsfield etc which hold 8.37 percent shareholding.
The promoters and Intu Properties Plc hold 33.46 percent and 32.38 percent stake in the company.
Lupin – Reduction in holding
The holding in Lupin was reduced to 77,93,105 shares from 82,93,105 shares.
Rakesh Jhunjhunwala’s holding of Luoin in the portfolio is worth Rs 1,100 crore.
Tata Motor DVR – reduction of holding
The holding in Tata Motor DVR was reduced to 2.44 per cent from 3.43 per cent.
The holding is worth Rs 366 crore.
Blue chip stocks in portfolio
The main stocks in the portfolio such as Titan Co, Rallis, Tata Motors DVR, Lupin, etc are large-cap blue chip stocks. There are also stocks which are small-cap and mid-cap.
Other shares in the portfolio
The holding of the other shares in the portfolio, namely, Rallis India, Delta Corp, Dewan Housing, Anant Raj and MCX have remained unchanged during the January to March 2017 quarter.
Escorts – 1000% gain to portfolio
Escorts Ltd has given a gain of 1000% in just four years. Escorts Ltd is engaged in the manufacture of farm and construction equipment.
It has reported good results in Q3FY17. The net profit increased 11.27 per cent to Rs 22.71 crore as compared to net profit of Rs 20.41 crore in Q3FY16.
It appears that the growth momentum in the equipment sale will sustain for another 3-4 months. The scenario for the entire agriculture sector is looking promising.
The sale of tractors over the past three to four months have been extremely good.
Delta Corp – Already a multibagger
There are several reasons why Delta Corp, the casino company, can be a multibagger stock.
The first is that Delta Corp is at an inflection point. The investment phase is behind and approval of the Daman casino and M&A opportunities in online gaming (like Adda52.com) could trigger significant growth and cash generation as well as return on capital employed / return on equity improvement.