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    Jhunjhunwalas just picked up two new stocks, hiked stakes in 6 others

    Synopsis

    Data showed the ace investor lapped up beaten-down auto firm Tata Motors for the first time. Jhunjhunwala was not among the key shareholders of the company at the end of June quarter.

    ET Bureau
    Jhunjhunwala – who is also a key investor in other Tata Group firms such as Titan, Indian Hotels and Rallis India – held 4 crore shares, or 1.29 per cent stake, in Tata Motors at the end of the September quarter.

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    Big Bull Rakesh Jhunjhunwala, whose net worth has jumped 45 per cent since March lows on the rebound in stocks, raised his stake in at least eight companies during the September quarter.

    Data showed the ace investor lapped up beaten-down auto firm Tata Motors for the first time. His name was not among the key shareholders of the company at the end of June quarter. His wife Rekha Jhunjhunwala bought into the water treatment company VA Tech Wabag

    Shares of VA Tech Wabag have gained 75 per cent to Rs 187.75 on October 21 from Rs 107.55 on June 30. Tata Motors has gained 33 per cent to Rs 130.25 during the same period. Earlier, the scrip had hit its all-time high of Rs 605 in February 2015.

    Brokerage HDFC Securities sees solid upside for the Tata Motors stock. “Going forward, once business normalises at JLR/India, we expect margins to improve with a rise in the share of profitable models. Higher focus on value-led profitable growth rather than market share along with rationlisation of cost and a capex reduction could improve efficiency and ensure strong cash flows,” it said.

    It further said at its recent AGM, Tata Motors provided guidance on its endeavour to become debt free in next three years, which provides strong visibility on future free cash flow generation.

    Rakesh Jhunjhunwala – who is also a key investor in other Tata Group firms such as Titan, Indian Hotels and Rallis India – held 4 crore shares, or 1.29 per cent stake, in Tata Motors at the end of the September quarter.

    While his wife sold 50,000 shares of Titan, the Big Bull kept his own holdings unchanged in Titan, Indian Hotels and Rallis, where his holdings stood at 4.43 per cent, 1.05 per cent and 10.31 per cent, respectively.

    As of September 30, Rekha Jhunjhunwala held 50 lakh shares, or 8.04 per cent stake, in VA Tech. The company in August decided to raise Rs 120 crore via preferential share issue.

    Consequently, the board had approved issue of 7.5 million equity shares at Rs 160 per share, the company said in BSE filing.

    Later, the company’s board allotted 5 million shares to Rekha Rakesh Jhunjhunwala, 1.5 million to Basera Home Finance and 1 million to Sushma Anand Jain and Anand Jaikumar Jain.

    The Jhunjhunwalas also increased their stake in construction company NCC to 12.14 per cent from 11.45 per cent earlier. Shares of the company have advanced 16 per cent to Rs 33.80 since June 30.

    He also upped his holding in Agro Tech Foods, Delta Corp, Jubilant Life Sciences, TV18 Broadcast and Lupin. Barring TV18 Broadcast, whose shares have dropped 17 per cent since June 30, others have advanced up to 43 per cent during this period.

    Prabhudas Lilladher has a ‘buy’ rating on Lupin with a target price of Rs 1,085, while Phillip Capital is positive on Agro Tech Foods with a target of Rs 815.

    Phillip Capital said the contribution of the foods business of Agro Tech Foods should rise from 32 per cent of sales in Q1FY21 to 48 per cent in FY23.

    On the other hand, Jhunjhunwala has reduced stakes in companies like Escorts, Federal Bank and Prakash Industries during the quarter.

    His net worth stood at Rs 13,272 crore as of Thursday, up from a March low of Rs 9,169 crore, data available on Trendlyne showed.

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    10 Comments on this Story

    Dilkhush35 days ago
    Buy Tata motors so that Jhunjhuna is benefitted by hike in price, then he will offload at the cost of gullible individual investors.
    SUNIL KUMAR GARG35 days ago
    Jhunjhunwala is more of a commodity for the media to benefit from & make their wares than about good,sensible investment advise. Remember that.
    Tacfood Dxb39 days ago
    Buy Jagran Prakashan which owns the Largest read Hindi newspaper in India and largest radio network big FM. It is in very attractive price. 27percent initial returns at current price.
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