Rakesh Jhunjhunwala Case Study
Rakesh Jhunjhunwala is known as the Big Bull of Dalal Street. On obvious reasons he enjoys a huge fan following in the markets. Many investors have the habit of emulating his investments. In this article we will explore some aspects of in this regard.
Lets us look at some of the major stocks of his portfolio and see how an investor would have fared buying into them.
The hits
Agro Tech Foods
Rakesh Jhunjhunwala has been holding Agro Tech Foods for long. However he has reduced his holdings on the stock over the years. The stock has been however a star performer and over the years has been on a strong uptrend. Investment on a systemic basis on this stock would have turned out to be pretty profitable for an investor. It is currently trading at …show more content…
In the early 2000s he was bullish in this stock when it was at Rs.60. The stock doubled to Rs.120. Rakesh Jhunjhunwala said that India would grow at 7 and 8 per cent and that demand for FMCG and consumer durables would see strong growth. He stated that Titan had 55 to 60 per cent of India’s organised watch market and also had a jewellery business. He stated that the size of the Indian jewellery market was roughly Rs 45,000 crore and that there would be enormous growth. Adjusted for bonus and split the return on Titan has been close to 4000%. An investment of Rs. 10 lakhs in Titan when Rakesh Jhunjhunwala has recommended would have turned out to worth Rs. 4 crores …show more content…
However for many investors VIP has not been the best of buys because of the pricing. Many had brought the stock at much higher levels. When Jhunjhunwala began accumulating the stock it was trading at Rs.65. A sort of euphoria set in the stock when the news of his investment in the stock came into limelight and in a short span of time it reached levels of 800. Investors showed huge confidence in the stock. VIP stock split was announced in 10:2 ratio. However the stock began to lose the stream and is currently trading at 80 levels. For Jhunjhunwala the buy is still profitable but for investors who brought in the euphoria higher than levels of 400, VIP has been a
Lets us look at some of the major stocks of his portfolio and see how an investor would have fared buying into them.
The hits
Agro Tech Foods
Rakesh Jhunjhunwala has been holding Agro Tech Foods for long. However he has reduced his holdings on the stock over the years. The stock has been however a star performer and over the years has been on a strong uptrend. Investment on a systemic basis on this stock would have turned out to be pretty profitable for an investor. It is currently trading at …show more content…
In the early 2000s he was bullish in this stock when it was at Rs.60. The stock doubled to Rs.120. Rakesh Jhunjhunwala said that India would grow at 7 and 8 per cent and that demand for FMCG and consumer durables would see strong growth. He stated that Titan had 55 to 60 per cent of India’s organised watch market and also had a jewellery business. He stated that the size of the Indian jewellery market was roughly Rs 45,000 crore and that there would be enormous growth. Adjusted for bonus and split the return on Titan has been close to 4000%. An investment of Rs. 10 lakhs in Titan when Rakesh Jhunjhunwala has recommended would have turned out to worth Rs. 4 crores …show more content…
However for many investors VIP has not been the best of buys because of the pricing. Many had brought the stock at much higher levels. When Jhunjhunwala began accumulating the stock it was trading at Rs.65. A sort of euphoria set in the stock when the news of his investment in the stock came into limelight and in a short span of time it reached levels of 800. Investors showed huge confidence in the stock. VIP stock split was announced in 10:2 ratio. However the stock began to lose the stream and is currently trading at 80 levels. For Jhunjhunwala the buy is still profitable but for investors who brought in the euphoria higher than levels of 400, VIP has been a