Rakesh Jhunjhunwala one of the most successful equities investor in India, who successfully made 4.9 billion dollars (490 crores USD) from just $100. Moreover, he is known as the “Big Bull” in the bullish market for his uncommonly wise intellect.
1) Titan Company Ltd.: The largest investment in Rakesh Jhunjhunwala’s stock portfolio is Titan Company Ltd. As of June 17, 2022, the total value of the Titan shares in his portfolio is a staggering Rs 8,685 crore. He made his initial investment in the stock back in 2002–2003, when it was trading for about Rs. 3–4. As of June 17, 2022, the stock is trading at Rs 1,935.45.Titan seems to be a fantastic stock to buy right now.
When Rakesh Jhunjhunwala bought the stock, however, this wasn’t the case. The business underwent reorganisation, cost-cutting measures, and a wage-settlement conflict with the union in the early 2000s. A dividend of 1 rupee was declared. Since 1990, they had never paid a lower dividend than this one. The business had a dismal return on capital employed of 7.80%However, Rakesh Jhunjhunwala caught something that nobody else did. Every year, Titan’s earnings were increasing steadily. At 3%–4%, their net profit margin remained constant. The company’s management was extremely ethical, which was a major bonus.
Rakesh Jhunjhunwala expanded his position in a select few stocks in December 2021, including Titan Company Ltd. His ownership of the stock has climbed from 4.90& in September to 5.10% in December 2021.
2) Star Health and Allied Insurance Company Ltd: is the next prominent stock in Rakesh Jhunjhunwala’s holdings. Rakesh Jhunjhunwala’s portfolio now includes this new stock. His belief in the stock, however, is fairly strong as seen by the fact that it holds the second-highest weight in the portfolio. At Rs. 6,275 crores, it is valued (as of June 17, 2022). The shares entered the secondary market on December 10th, 2021. But before the stock’s IPO, Rakesh Jhunjhunwala had made a purchase. The company is India’s biggest private health insurer. It has a 15.80% market share in the Indian health insurance market. With the exception of 2021, its net profit has increased steadily since 2016. Between March 2019 (128 crore rupees) and March 2020, its net profit increased by 109%. (Rs 268 crore).
3) Tata Motors Ltd.: is the next significant stock in Rakesh Jhunjhunwala’s holdings. Since, he owns shares in Tata Motors Ltd. valued at Rs. 1,526.60 billion. He claims that one of the biggest investments in his life was in Tata Motors Ltd. Also, he has high hopes for Tata Motors Ltd. He thinks it would dominate the Indian market for electric vehicles. One of India’s top producers of commercial cars is Tata Motors Ltd. In the Indian CV market, it holds a 43% market share. As of March 2021, the company was able to provide a 6% positive ROCE. The business is also well-capitalized. The value of its cash equivalents is Rs 34,604 crores. This is significantly more than its closest competitor’s cash equivalent (Rs. 1,722 crores), Ashok Leyland Ltd.
4) Escorts Ltd: is Rakesh Jhunjhunwala’s portfolio’s fourth-largest stock (by value). He is the owner of 64 lakh Escorts Ltd shares worth Rs. 1,196 crores. One of the leading companies in India’s tractor market is Escorts Ltd. They produce hydraulic shock absorbers for internal combustion engines, railway coaches, and other things in addition to agricultural tractors. In the December quarter, Rakesh Jhunjhunwala increased his ownership of the stock by 0.50%. However, altogether, he gradually decreased his ownership, going from 7.70% in December 2019 to 5.20% in December 2021.
5) CRISIL Ltd. is one of his favorite stocks. Since, he holds 40 lakh CRISIL Ltd. shares worth Rs. 1,244 crores (as of June 17, 2022). For the past few years, his ownership of the company has been constant at 5.50%. Rakesh Jhunjhunwala’s reasoning for investing in CRISIL Ltd. is straightforward.
Any economy’s expansion depends on how well its financial sector is doing. The financial industry contributes 7.4% of the gross domestic product (GDP) in developed countries like the USA (as per 2018 data). India has a meagre 0.27% financial industry to GDP ratio in 2018. In India’s financial and insurance sector, there is hence tremendous room for expansion. Large economic moats surround CRISIL as well. It serves the whole Indian mutual fund sector, which had a market value of Rs. 37.73 trillion as of December 2021.
Big Bull Rakesh Jhunjhunwala
This completes our discussion on Rakesh Jhunjhunwala’s portfolio. He is without a doubt an eccentric investor. So, it makes sense that people would want to emulate Rakesh Jhunjhunwala.