Rakesh Jhunjhunwala Portfolio: Amid choppy trade in the Indian stock markets, ace investor Rakesh Jhunjhunwala (RJ) has seen his portfolio value drop by about Rs 1,100 crore in April so far. The duo’s portfolio was worth Rs 32,667 crore as of Wednesday, down Rs 1,084 over a portfolio value of Rs 33,754 crore at the end of the March quarter. Here’s what brokerages say about Jhunjhuwala’s favorite stocks
Titan
Titan Company, where Rakesh and Rekha Jhunjhunwala held a 5.1 per cent stake as of December 31, has fallen 3 per cent so far this month. The Jhunjhunwala duo’s stake in this stock is valued at Rs 11,106.90 crore. Emkay Global has buy call on Titan Company with a target price of Rs 2900. The current market price of Titan Company Ltd. is Rs 2456.25. Time period given by analyst is one year when Titan Company Ltd. price can reach defined target.
Titan Company Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 218706.12 Crore) operating in Gems and Jewellery sector.
Star Health and Allied Insurance
Star Health and Allied Insurance Company, which is promoted by Jhunjhunwalas, has risen 3 per cent this month. In fact, this stock jumped 20 per cent on March 16 to Rs 609.25. Jhunjhunwalas’ 17.5 per cent stake in the company was last valued at Rs 7,392.3 crore.
It has not had a good journey on the stock exchanges so far since listing. The stock has plummeted 30 per cent since its debut and has not touched the IPO price since listing day. However, analysts at Motilal Oswal have initiated the coverage of Star Health, expecting a 20 per cent upside from today’s levels. Big bull Rakesh Jhunjhunwala is the promoter of Star Health and Allied Insurance Company, owning a 17.5 per cent stake in the recently listed company. Star Health has been termed as a premium franchise by analysts at Motilal Oswal.
“Star Health, the market leader in the Indian Health Insurance industry, with a retail market share of 31 per cent, is poised to grow at a relatively faster pace vis-à-vis the overall Health Insurance industry,” the brokerage firm said in its initiation note. Going ahead, Star Health is expected to report a gross premium CAGR of 25 per cent over FY21– 24E, going from a loss of Rs 8.3 billion in FY21 to a Net profit of Rs 10.8 billion in FY24E. “We value the company at 40x FY24E EPS to arrive at a fair value of Rs 750,” analysts said. This translated to an upside of 20 per cent.
Metro Brands
Metro Brands, where Rekha Jhunjhunwala owns a 14.4 per cent stake, is down 2.9 per cent this month even as the scrip has risen 33 per cent year-to-date. Rekha owns Rs 2,360.8 crore worth of Metro Brands shares, based on the December quarter shareholding pattern. Among four analysts tracking this stock, three have a ‘buy’ and one has a ‘sell’ rating.
Tata Motors
Tata Motors, where the Big Bull held a 1.2 per cent stake at the end of the December quarter, is down half a per cent this month, largely in line with Sensex. Jhunjhunwala held Rs 1,698.20 crore worth of shares in the Tata group firm as of Wednesday.
JLR released its Q4FY22 wholesales volumes and the reported volumes of 76.5k units (ex-CJLR) are around 16 per cent below of brokerage Edelweiss’ expectation. Chip shortage continued to dent volumes in Q4FY22. More worrying is the expected pressure in Q1FY23, the brokerage said in a note.
“Contrary to the general trend, Q4FY22 did not turn out to be the best quarter for JLR; the best quarter was Q1FY22 with volumes of 84,442 units. On the whole, concerns have emerged pertaining to FY23 volumes, which we factor in at 426K units in our model. Accordingly, we await management commentary to assess the nature of chip supply issue,” the note stated.
Though, brokerage and research firm Edelweiss believes that India and JLR are on the cusp of strong demand and product cycle tailwinds, which should facilitate balance sheet improvement. The brokerage has maintained its ‘Buy’ rating on Tata Motors shares with a target price of Rs 616, implying a potential upside of 40 per cent from current stock level.
In a note last week, analysts at global brokerage Jefferies said they liked Tata Motors’ SUV and EV focussed strategy in the passenger vehicle (PV) segment. It has taken an early lead in electric vehicles (EVs), and the recent investment by TPG has provided the balance sheet strength to drive electrification.
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