How many amongst us can think of owning a portfolio of stocks worth Rs. 10,000 crore? Almost none of us can’t even think of achieving a figure anywhere close to that. However, an Indian investor can now think of crossing that towering figure! He is none other than Rakesh Jhunjhunwala, the big bull of the Indian stock market. As per some recent disclosures, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala’s portfolio is presently worth more than Rs. 9,000 crore. No other investor in the Indian stock market can surpass Rakesh Jhunjhunwala’s portfolio value at least in the next few years because almost all of them are far far away from achieving that figure. The way Jhunjhunwala is achieving the feats, undoubtedly, he is the Sachin Tendulkar of the Indian stock market!
Rakesh Jhunjhunwala’s Portfolio has grown significantly in the last few years
According to a study conducted by Prime Database, it appears that the cumulative holdings of Rakesh Jhunjhunwala and Rekha Jhunjhunwala have grown by more than 5.5 times from Rs. 1618 crore in 2009.
The top holdings in Rakesh Jhunjhunwala’s Portfolio
Jhunjhunwala’s largest holding is in the Titan company. It makes up around 30% of the total portfolio amount. Rakesh Jhunjhunwala entered the stock 13 years back when it was trading at Rs. 3 to Rs. 5 per share. The absolute return is more than 8,000%.
Jhunjhunwala duo’s second largest holding is in Lupin and they invested in the stock nearly 13 years back. The stock yielded them close to 14,000% return during the entire period of the investment.
In 2003, Rakesh Jhunjhunwala and Rekha Jhunjhunwala spotted CRISIL. The couple picked up a huge number of shares of the company in their portfolio at dirt cheap price per share. They were optimistic about the future performance of the stock and it didn’t disappoint them. The investment in CRISIL is the third largest and has fetched them close to 6,000% absolute return.
NCC is another old stock and it is in the Rakesh Jhunjhunwala’s portfolio for almost 12 years now. During the entire investment period, the stock yielded 700% return.
Drugmaker Aurobindo Pharma is another company on which Rakesh Jhunjhunwala is highly optimistic. The couple included the stock in their portfolio in 2014 and it has already given them an absolute return of 290%. It constitutes about 7% of their total portfolio value and is the 4th largest stock in their holdings.
Rallis India is another multibagger stock which the couple is holding for the past 7 years. It yielded them an absolute return of 658%.
The other well-performing stocks that constitute a significant percentage of Rakesh Jhunjhunwala’s portfolio value include Dewan Housing Finance, Escorts, Delta Corp., Karur Vysya Bank, etc.
The average period for which the Jhunjhunwala couple is holding stocks in their portfolio falls between 3-4 years. The stocks that were held for more than 10 years have produced the best results. The average absolute returns for such stocks are remarkably above 3,300%. Even the newer stocks in their portfolio give them decent average absolute returns.
Recent changes in Rakesh Jhunjhunwala’s Portfolio
In recent purchases, Rakesh Jhunjhunwala increased his holdings in Aptech, an IT training services company on August 09, 2016. After Jhunjhunwala bought 7 lakh shares of Aptech at an average price of Rs. 91.62 per share, the stock went on to hit its 52-week high price. The stock since then performed well and on September 07, 2016 the Jhunjhunwala couple further purchased more than 5 lakh shares of the company at an average price per share of Rs. 155.51.
The Jhunjhunwala couple also raised their stake in Delta Corp and Agro Tech Foods while they reduced their stake in VIP Industries and Autoline Industries over the period of last few months. According to the PRIME database study, they exited McNally Bharat Engineering and Polaris Consultancy.
Investment timing and spotting multibagger stocks early is the key to Jhunjhunwala’s success
The aggressive approach of Rakesh Jhunjhunwala and the way he has performed in the stock market undoubtedly makes him the best performer in the Indian stock market. Jhunjhunwala has always remained successful in spotting multibagger stocks at regular intervals. This perhaps has played the biggest role behind his success. He picks up the multibagger stocks in his portfolio at the right times and has been doing it quite constantly much ahead of other leading Indian stock market players.
Rakesh Jhunjhunwala’s story is quite inspiring. He is a person who started his journey in the stock market in 1985 with just Rs. 5,000. Now, Rakesh Jhunjhunwala’s portfolio value is very close to Rs. 10,000 crore. And, if he continues his steady performance, the value of his portfolio shall cross the figure in a few days time!
Never invest in stocks just by blindly following an ace investor’s portfolio. Make your own analysis before investing.
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