Rakesh Jhunjhunwala & Associates Portfolio: Top 5 Stocks

Originality is overrated in the realm of investment.

It is because you get no brownie points for using only your research. Returns are returns, and it's all that matters at the end of the day.

So, if you can piggyback on the research of famous investors like Warren Buffet and Peter Lynch or Indian Investors like Rakesh Jhunjhunwala or Ashish Kacholia, why wouldn't you?

The primary idea behind this strategy is to look at the buying and selling behavior of investing gurus and base personal investment decisions on that.

The strategy is based on the logic that if these top investors would buy a stock for their portfolio, then it must be a great investment, and one would also benefit from it.

One such guru that has often been tracked is Rakesh Jhunjhunwala.

Rakesh Jhunjhunwala was known as "India's Warren Buffett." According to Forbes, Jhunjhunwala was the 36th richest man in the country. He was worth Rs 460 bn when he passed away on 14 August 2022.

Here is the list of his top 5 investments, at present, in value terms and not volume.

#1 Titan

The first stock on the list is Titan.

Rakesh Jhunjhunwala holds a 5.17% stake in the company, or 45 m shares in total as of December 2022, according to the shareholding pattern of Titan.

Considering the company's current market price of Rs 2,332 as of 28 January 2023, Rakesh Jhunjhunwala's total value in Titan stood at Rs 107 billion (bn).

He invested in Titan in 2003. While we can't go back to 2003, here's how Jhunjhunwala 's holding in Titan has varied in recent years.

Quarter Ending	No of Shares	stake (%)
Dec-20	47,170,970	5.32
Mar-21	44,900,970	5.06
Jun-21	42,650,970	4.79
Sep-21	43,300,970	4.87
Dec-21	43,250,970	5.09
Mar-22	44,850,970	5.05
Jun-22	44,850,970	5.05
Sep-22	49,200,970	5.54
Dec-22	45,895,970	5.17

Data Source -BSE

He first bought shares of Titan in 2002-2003 for Rs 30-32.

Titan comprises almost one-third (in value) of his portfolio of 32 stocks.

The big bull invested in Titan when the firm was not doing well on the financial front.

The company's Times products business clocked a degrowth of 1% YoY at Rs 4.5 bn in 2002-2003. This was due to the partial lockout at Hosur, which significantly affected the production and availability of watches during the peak selling season of January-March 2003.

However, the jewellery business grew 29% YoY in 2002-2003 to Rs 3.5 bn, which might have prompted Jhunjhunwala to believe in the company's growth story at a time of poor financial performance.

The stock has zoomed over 82 times since Jhunjhunwala bought the stock for the first time.

He reduced his stake in the company from 5.54% in September 2020 to 5.17% in September 2022 quarter due to volatility in gold prices and uncertain geopolitical conditions.

Titan reported a 22% YoY rise in revenue to Rs 87.3 bn in the September 2022 quarter against Rs 71.6 bn in the year earlier.

Net profit for the same period was up 34% YoY to Rs 8.5 bn compared to Rs 6.4 bn. This rise was due to the boost in sales due to the festive season and upbeat consumer confidence.

To keep up with the expansion plans, it remains focused on executing its growth plans in India and overseas.

#2 Metro Brands

The second stock on the list is Metro Brands.

Rakesh Jhunjhunwala holds a 14.4% stake in the company or 3.9 m shares in total as of December 2022, according to the shareholding pattern of Metro Brands.

Considering the company's current market price of Rs 770.3 as of 28 January 2023, Rakesh Jhunjhunwala's total value in Metro Brands stands at Rs 30.2 billion (bn).

Here's how Jhunjhunwala 's holding in Metro Brands has varied since December 2021.

Quarter Ending	No of Shares	stake (%)
Dec-21	39,153,600	14.43
Mar-22	39,153,600	14.43
Jun-22	39,153,600	14.43
Sep-22	39,153,600	14.43
Dec-22	39,153,600	14.43

Data Source -BSE

His bet on the company came during the company's IPO. This could be due to positive industry growth trends, given its strong presence and products that cater to all occasions across age groups and market segments.

After his investment in the company, Metro Brand's share price saw a sharp rally on the back of high revenue and increasing market share.

He has kept his stake in the company constant since he bought the shares in the IPO. This could be due to rising raw material costs following the Russia-Ukraine war.

Also, the sales from the mass segment saw a muted performance on account of inflation and GST fees.

With the rural market in India suffering, the purchasing power in the rural market was more affected than in urban India.

However, the company's prospects continue to be bright on the back of a rise in disposable income. As more and more people in the country become financially stable, they turn to high-quality, branded footwear.

It is especially true in urban areas, where people are looking for fashionable, comfortable, and durable footwear.

For the December 2022 quarter, Metro Brand recorded a 24% YoY rise in consolidated revenue to Rs 5.9 bn. The net profit came in 10.8% YoY higher at Rs 1.1 bn.

The company, for further expansion, is looking forward to opening more stores under its Metro and Mochi brand.

#3 Tata Motors

The third stock on the list is Tata Motors.

Rakesh Jhunjhunwala holds a 1.57% stake in the company, or 52 m shares in total as of December 2022, according to the shareholding pattern of Tata Motors.

Considering the company's current market price of Rs 445.3 as of 28 January 2023, Rakesh Jhunjhunwala's total value in Tata Motors is Rs 23.3 bn.

Here's how Jhunjhunwala 's holding in Tata Motors has varied since September 2020.

Quarter Ending	No of Shares	stake (%)
Dec-20	47,170,970	5.32
Mar-21	44,900,970	5.06
Jun-21	42,650,970	4.79
Sep-21	43,300,970	4.87
Dec-21	43,250,970	5.09
Mar-22	44,850,970	5.05
Jun-22	44,850,970	5.05
Sep-22	49,200,970	5.54
Dec-22	45,895,970	5.17

Data Source -BSE

He held a 1.11% stake as of September 2022, which increased to 1.57% as of December 2022. After his investment in the company, shares of the company have been on an uptrend.

He has increased his stake in the company in the last two quarters. This stake can be due to the company's push towards electric vehicles (EVs).

Tata Motors currently has the highest share of electric vehicles sold in India.

Backed by billion-dollar funding from TPG Capital and a new range of models, Tata Motors has taken an early lead in the EV race. It has plans to produce 50,000 EVs in the current fiscal.

The company has sounded out vendors on an assured production plan of 50,000 EVs in the current fiscal year and to scale that up to 1.3-1.5 lakh units annually in the next two years.

It already has bookings for more than 15,000 vehicles and plans to launch three affordable electric cars in the sub-Rs 10 lakh range in the next 12-18 months.

#4 Canara Bank

The fourth stock on the list is Canara Bank.

Rakesh Jhunjhunwala holds a 1.6% stake in the company, or 29 m shares in total as of December 2022, according to the shareholding pattern of Canara Bank.

Considering the company's current market price of Rs 290.45 as of 28 January 2023, Rakesh Jhunjhunwala's total value in Canara Bank is Rs 10.9 bn.

Here's how Jhunjhunwala 's holding in Canara Bank has varied since September 2021.

Quarter Ending	No of Shares	stake (%)
Sep-21	29,097,400	1.6
Dec-21	29,097,400	1.6
Mar-22	35,597,400	1.96
Jun-22	35,597,400	1.96
Sep-22	26,847,400	1.48
Dec-22	37,597,600	2.07

Data Source -BSE

After his investment in the company, Canara Bank has seen a sharp rally on the back of an improvement in net interest income margin.

He has increased his stake in the company from 1.6% in September 2021 to 2.07% in December 2022.

The bank has doubled its advances in the last five years, reporting a 5-Yr CAGR of 15.5%. And while the advances have doubled, the NPAs have halved, suggesting a massive improvement in asset quality.

Canara Bank's NPAs have gone from a whopping 7.5% in the financial year 2018 to 2.7% in 2022.

Also, the business crossed Rs 20 tn mark in December 2022.

For the September 2022 quarter, it reported an 89% jump in the net profit to Rs 25.3 bn, aided by higher net interest income with healthy growth in advances.

Its net interest income grew by 18.5% YoY to Rs 74.3 bn compared to Rs 62.7 bn. The net interest margin came in at 2.9% compared to 2.8% in the year-ago quarter.

Over the next five years, Canara Bank is looking to grow its business - deposits plus advances to Rs 30 tn.

#5 Fortis Healthcare

Last stock on the list is Fortis Healthcare.

Rakesh Jhunjhunwala holds a 4.46% stake in the company or 3.3 m shares in total as of December 2022, according to the shareholding pattern of Fortis Healthcare.

Considering the company's current market price of Rs 281 as of 28 January 2023, Rakesh Jhunjhunwala's total value in Fortis Healthcare is Rs 9.5 bn.

Rakesh Jhunjhunwala started buying shares in the company in 2015.

While we can't go back to 2015, here's how Jhunjhunwala 's holding in Fortis Healthcare has varied in recent years.

Quarter Ending	No of Shares	stake (%)
Sep-18	12,500,000	2.41
Dec-18	12,500,000	1.66
Mar-19	12,500,000	1.66
Jun-19	12,500,000	1.66
Sep-19	12,500,000	1.66
Dec-19	20,000,000	2.65
Mar-20	20,000,000	2.65
Jun-20	20,000,000	2.65
Sep-20	20,000,000	2.65
Dec-20	30,000,000	3.97
Mar-21	32,550,000	4.31
Jun-21	32,550,000	4.31
Sep-21	31,950,000	4.23
Dec-21	31,950,000	4.23
Mar-22	31,950,000	4.23
Jun-22	31,950,000	4.23
Sep-22	35,152,108	4.66
Dec-22	33,652,108	4.46

Data Source -BSE

He has continuously increased his stake in the company from 2.4% in September 2018 to 4.46% in December 2022, almost doubling his stake.

After his investment in the company, the shares saw a spike in the last two years.

The rally was due to a rise in the number of footfalls driving the revenue.

With Covid-19 abating, the company's hospital business has shown a strong uptrend relative to the diagnostics business.

It has also launched an advanced state-of-the-art Philips Azurion Lab facility for faster and timely diagnosis and treatment related to interventional cardiology and cardiovascular surgeries.

The hospital industry is expected to post-occupancy levels of 62-64% in the financial year 2023, backed by demand for elective surgeries, medical tourism and organized players improving their market share.

For September 2022 quarter, the company reported a 9.9% YoY rise in revenue to Rs 16 bn. The net profit during the quarter grew by 67% YoY to Rs 2.2 bn.

Which other stocks has Rakesh Jhunjhunwala invested in?

Apart from the above five, here are some other stocks which Rakesh Jhunjhunwala has invested in as of September 2022.

Please note, the source of holdings listed below is from Ace Equity and it may or may not be a complete list of holdings.

Company	No of shares	percentage (%)	CMP (Rs in billion)
The Indian Hotels Company Ltd.	30,016,965	2.11	8.9
The Federal Bank Ltd.	48,213,440	2.31	6.6
Nazara Technologies Ltd.	6,588,620	10	3.9
Escorts Kubota Ltd.	1,830,388	1.39	3.8
Jubilant Pharmova Ltd.	10,770,000	6.76	3.5
Aptech Ltd.	9,668,840	23.36	3.3
The Federal Bank Ltd.	24,500,000	1.17	2.4
Jubilant Ingrevia Ltd.	5,020,000	3.15	2.3
Rallis India Ltd.	10,735,570	5.52	2.1
Tata Motors Ltd. - DVR Ordinary	10,000,000	1.97	1.6
Agro Tech Foods Ltd.	1,753,259	7.19	1.3
Sun Pharma Advanced Research Company Ltd.	6,292,134	1.94	1.1
Rallis India Ltd.	5,182,750	2.67	1
NCC Ltd.	11,600,000	1.85	0.9
Edelweiss Financial Services Ltd.	14,315,000	1.52	0.9
Geojit Financial Services Ltd.	20,037,500	8.38	0.6
Rallis India Ltd.	4,100,000	2.11	0.3

Recently we also wrote to you about Vijay Kedia Portfolio top 5 stocks and Ashish Kacholia Portfolio: Top 5 stocks.

Stay tuned to get more updates on investment gurus as we cover more such pieces in the coming weeks.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...