Jhunjhunwala rejigged stake in 11 firms in Q4

Currently, the investor and his family’s net worth in listed firms stands at Rs 8,517 crore, compared to Rs 8,388 crore as of March 31, 2020.

Investor Rakesh Jhunjhunwala rejigged his stake in 11 firms in the March quarter (Q4), and kept it unchanged in eight, according to the latest shareholding pattern till May 8, 2020, filed by the companies.

Jhunjhunwala increased his stake in six companies during the period under review, including Rallis India, VIP Industries, Federal Bank, Jubilant Life Sciences, GMR Infrastructure, and Orient Cement.

Of these, Jubilant Life Sciences and Rallis India have outperformed the market by surging 47 per cent and 27 per cent, respectively, since April.

The remaining four underperformed the Sensex.

Jhunjhunwala reduced his stake in five companies, including Titan Company, Lupin, Firstsource Solutions, NCC and Escorts.

Interestingly, except Titan, which slipped 6 per cent, the remaining stocks outpaced the market by gaining up to 40 per cent since April.

Delta Corp, Edelweiss Financial Services, Fortis Healthcare, Crisil, and Bilcare are among the eight firms where he did not alter holding.

On the other hand, TV18 Broadcast, Karur Vysya Bank, Autoline Industries, and Agro Tech Foods are some of the 10 firms where he holds a stake, but the firms have not announced their latest shareholding pattern for Q4, yet.

Currently, investor and his family’s net worth in listed firms stands at Rs 8,517 crore, compared to Rs 8,388 crore as of March 31, 2020.

The calculation is based on the latest shareholding pattern of 31 firms available on the stock exchanges, and stock price of the particular dates.

As of December 31, 2019, the stakes across 30 firms were valued at Rs 12,556 crore.

The investor’s stake in Titan was the lowest since September 2006.

According to the shareholding pattern of the firm, as of March 2020, Rakesh and Rekha Jhunjhunwala trimmed their stake to 5.53 per cent, from 6.69 per cent at the end of 2019.

Currently, their combined holding in Titan is at an over one-decade low in percentage terms.

Earlier, they held 4.9 per cent stake in the company at the end of the September 2006 quarter, shareholding pattern data shows.

Thus far in the calendar year 2020, the Titan stock has underperformed the market by falling 28.5 per cent, as compared to 23.7 per cent decline in the Sensex.

The stock hit a 52-week low of Rs 720 on March 24 this year, and has almost halved from its all-time high level of Rs 1,390 touched on October 25, 2019.

Despite the near-term headwinds, analysts remain bullish on Titan and suggest investors stay put for now.

“Negative correlation of 0.64 per cent (since 2010) between gold price and jewellery demand, and destruction of purchasing power due to COVID-19 will result in 17.6 per cent decline in sales, and 21.6 per cent decline in jewellery Ebitda in FY21.

“We expect recovery to set in from Q3 and play out in FY22 with 35 per cent increase in sales and 42 per cent higher Ebitda.

“Retain hold and recommend accumulation on declines for long -term gains,” wrote Amnish Aggarwal of Prabhudas Lilladher in a co-authored report with Charmi Mehta and Heet Vora.

Photograph: Shailesh Andrade/Reuters

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