Rakesh Jhunjhunwala Holdings: Veteran investor Rakesh Jhunjhunwala made several changes in his billion-dollar portfolio in the December quarter. Rakesh Jhunjhunwala, popularly known as Big Bull, has 42 stocks in his portfolio, out of which he has increased his stake in 4 stocks during the December quarter. At the same time, he has reduced his stake by selling 5 shares. This information has been got from the data available on the trendline.
Rakesh Jhunjhunwala, often called the Warren Buffett of India, increased his stake in Titan by 0.20 per cent to 5.1 per cent, Tata Motors by 0.10 per cent to 1.2 per cent, Escorts by 0.40 per cent to 5.2 per cent and Indian Hotels by 0.10 per cent during the December quarter. increased to 2.2 percent.
The reasons why Jhunjhunwala decided to increase his stake in these four companies, let’s take a look at those possible reasons-
Titan Company
Rakesh Jhunjhunwala has been reducing his stake in the company in the four quarters before the December quarter. However, considering the excellent performance of the stock as well as the business, he decided to increase his stake in the December quarter.
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“Titan’s December quarter business update reflects strong growth momentum, which also indicates an increase in its market share,” Emkay Global Financial Services said in a recent note. During the quarterly results, Titan reported that its jewelery business has registered a growth of 37 per cent year-on-year. In view of this, Emkay has raised its earnings forecast for the stock by 8-9 per cent.
Escorts
Jhunjhunwala has increased his stake in the tractor maker at a time when Japanese company Kubota Corporation is going to take a controlling stake of 26 per cent in Escorts through preferential allotment of shares and open offer.
Brokerage firm Nirmal Bang Equities believes that concrete gains from this will be seen only in the medium term.
It should not be surprising if investors like Jhunjhunwala offer a part of their shares in an open offer at Rs 2,000 per share, the brokerage said. That’s because analysts see a weakness in the company’s earnings over the next two years due to weak demand.
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Tata Motors
Jhunjhunwala had bought shares of Tata Motors in the September quarter of last financial year and since then he has increased his stake in the automobile company for the first time. His decision came at the right time as Tata Motors shares rose nearly 45 per cent during the December quarter after the announcement of TPG’s investment in the company’s e-mobility unit.
The induction of a strategic investor in the electric vehicle subsidiary has boosted investor confidence in Tata Motors’ potential in this segment. The stock has been supported by steady growth in the domestic passenger vehicle market and easing of semiconductor concerns.
Indian Hotels
Many analysts believe that Indian Hotels is the main stock among the stocks which are likely to rise after the lifting of Corona restrictions. During the December quarter, the company’s earnings are expected to grow well due to the increase in tourism.
Brokerage firm Motilal Oswal Financial Services reiterated in a report that the stock is their top choice in the tourism sector due to the shift from asset-heavy to asset-light strategy.
Motilal Oswal Financial said, “However, the third wave of Corona has become a threat to the near-term earnings of the hospitality sector. However, there is a possibility of a similar bounce once the wave subsides. So, we are looking for stocks in the short-term. I see this weakness as a buying opportunity.”
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