Veteran investor Rakesh Jhunjhunwala passed away on Sunday morning. He breathed his last at Breach Candy Hospital in Mumbai. Although the big bull of Dalal Street is gone, his legacy and success story on the stock market will be reminiscent. The man who was often referred to as the “Warren Buffett of India”, currently holds 32 stocks on the exchanges and the value of his wealth in these shares is approx. 32,000 crore in August so far. The largest stocks in his portfolio are Titan, Star Health and Allied Insurance Company, Metro Brands, Tata Motors and CRISIL in terms of value. His share in these shares is more than up to 1000 crores 11,000 crores.
Tata group backed Titan Your portfolio is at the top of the pyramid. While Star Health, Metro Brands and Tata Motors are some of his recent investments. He has been with Titan and Crisil since 2015. These five stocks account for about 77% of his portfolio’s assets.
According to Trendline data, big bullProperty up 25% in less than two weeks of August 31,833.77 crore. his wealth was around 25,425.88 crore more in June 33,753.92 crore in March this year.
From this total, the value of his shareholding is approximately 11,086.9 crores in Titan, 7,017.5 crore in Star Health, 3,348.8 crore in Metro Brands, 1,731.1 crore in Tata Motors, and 1,301.9 crore in CRISIL till August 12, 2022.
Since August 13, 2015, Titan shares have emerged as a multi-bagger with a breath-taking gain of nearly 655% to date. However, CRISIL has gained almost 71 per cent over the years so far.
Star Health and Metro brands were listed in December last year. The general health insurer has fallen more than 23% since the day of its listing, however, has been on a recovery path since July 2022. Meanwhile, footwear firm Metro Brands has grown by over 76% since its launch in the market. He invested in Tata Motors in the September 2020 quarter, and since then the shares have gained 217.5%, as per data available on BSE.
Here are the details of Jhunjhunwala’s shareholding in these shares:
– As of June 30, 2022, the market mogul holds 44,850,970 equity shares or 5.1% in Titan.
He holds 100,753,935 equity shares or 17.5% stake in Star Health as on June 30, 2022.
His shareholding is 39,153,600 equity shares or 14.4% as at the end of June 2022 quarter.
While he holds 36,250,000 equity shares or 1.1% stake in Tata Motors as of the end of June 2022 quarter.
Jhunjhunwala holds approximately 4,000,000 equity shares or 1.1% in CRISIL as on June 30, 2022.
Here is an overview of the shares currently trading on BSE. Analysts have given an optimistic outlook on some of these stocks going forward:
Titan Company:
Titan shares close on BSE 2,471.95 each as of August 12. The market cap of the company is 2,19,456.30 crores.
Shares on Dalal Street have gained at least 35.55 per cent in one year. shares were around 1,823.55 on August 12 last year.
JM Financial analysts Richard Liu, Mehul Desai and Sumanyu Saraf said in their report, “Titan made a great post-pandemic start with strong metrics across all key businesses. With a ‘normalized’ growth of 23% (3-year CAGR), the sales momentum in Jewelery strongly revived after a weak March-Q, which is best seen across the consumption categories we track. Much of the management conversation revolves around recruiting new consumers into the ecosystem to create a ‘funnel for the future’. The growth, improved mix and resultant cost-leverage delivered even better profitability than we had anticipated.”
He also added, “Looking at the strength across sectors, the management re-emphasized its bullish overall outlook with jewelery growth guidance of 2.5x over five years, ie 20% CAGR in FY 22-27E 12- With near-term margins in the 13% range. Watches. Looks like an even higher base has now been established, with wearables becoming a significant new driver. Same is the case for eyewear where the recent restructuring strengthened We expect the stock to remain strong on the back of this result but a >60x NTM PER appears to be an entry point too rich for us.”
JM Financial analysts set 12-Month Target Price of 2,620 on Titan.
Star Health and Allied Insurance:
Shares of Star Health are at this level on BSE 696.10 each till August 12. The market cap of the company is approx. 40,104.98 crores.
Star Health made its market debut on December 10 last year. The company had launched its IPO last year at the price band between November 30 and December 3. 870 to 900 per. Demand for the IPO remained sluggish as it was not fully subscribed.
The shares have gained over 42% since July this year.
HDFC Securities analysts Sahej Mittal, Krishnan ASV, Deepak Shinde and Neelam Bhatia said in their research note, “Capitalizing on early mover gains and significant regulatory arbitrage, Starhale as the largest standalone health insurer (FY22:33%) shares), an extremely strong and highly productive agency-dominated distribution network and retail-dominated business mix (FY22: ~90% of GDPI). Despite potential regulatory convergence, we believe STARHEAL has meaningful headroom to move towards a high quality franchise, which translates into better quality of earnings.”
Furthermore, analysts said, “Having mastered the agency channel, we argue that the company now needs to build a credible banking strategy to sustain its growth over the long term. We expect STARHEAL 32 % / APAT will deliver CAGRs of revenue / APAT. Healthy RoE in the range of 38% in FY20-FY24E and 10% / 16% in FY23E/24E. We expect BUY of INR 860 (53x FY24E AEPS and 10x FY24E P/ABV) and Let’s start with the DCF derivative target price.”
Metro Brand:
Shares of the company close on BSE 854.30 each. Shares hit new 52-week high 869 each on Friday. The market cap of the company is approx. 23,199.04 crores.
The shares of Metro Brands were listed on the stock exchange on December 21 last year. The price band of the IPO was from 485 500 per piece. 100% book building subscribed 3.64 times in the primary market.
Since its listing, shares of Metro Brands have gained over 76 per cent on the BSE. So far, in 2022, the shares have gained over 91.5%, making many investors, including Jhunjhunwala, wealthy.
Akhil Parekh Research Analyst and Kevin Shah Research Associate at Centrum said in their report, “The entry into new geographies, tie-ups with international brands (Crocs and FitFlops) and variable cost structure helped the company to increase sales/EBITDA/PAT CAGR. At 34/36/47% respectively as compared to FY22-24E. On a lower basis, we expect volumes (number of pairs) to grow at a CAGR of 25% and ASP at 7% over FY22-24E. We have have increased our EPS estimates by 49/36% each for FY23/FY24. We maintain our rating to ADD with a target price of Rs 821. We continue to evaluate the stock at 48x FY24E.”
Tata Motors:
Tata Motors shares close on BSE 477.50 each. The market cap of the company is approx. 1,58,586.12 crore.
Shares of Tata Motors have gained over 56 per cent in one year. shares were around 306 on 12 August last year.
Vivek Kumar and Raunak Mehta, analysts at JM Financial, said in their research note, “TTMT expects chip shortages to continue with gradual improvement through CY22. Management saw the fiscal year at JLR driven by continued improvement in production. Has guided for positive EBIT and FCF for 23, ‘refocus’ program and continued efforts towards cost efficiencies. Global retail demand remains strong with record high orders and low inventory. Favorable mix, sales recovery and cost savings The initiative is expected to support margins going forward, while debt reduction (targeted near debt free FY24) will aid in the strengthening of the balance sheet.In addition, Tata Motors’ EV portfolio is leading the domestic EV space And by securing strategic investors, it is set to build on its initial success. Buy with a March ’23 SOTP of INR 550 ( 10x /2.5x EV/EBIDTA Value of Standalone/JLR. Continuing shortage of semiconductors, to EVs Less than expected adoption and no delay in developing EV technologies Implicit risks are key. Isx.”
Meanwhile, analysts Rishi Vora and Ishwar Bavinini of Kotak Institutional Equities said, “We have corrected our FY2023-25E consolidated EBITDA estimates. While the near term for JLR may remain volatile due to the risk of recession in the EU, We believe the company has done well to improve the structural profitability of the business over the years.With the improving chip situation, we believe JLR will continue to strengthen its successful new launches and The order is well positioned to profit given the backlog. Also, we believe the domestic CV cycle will continue to recover as freight rates continue to strengthen and fleet utilization levels improve. Domestic ICE PV The company’s successful new launches in the segment as well as rising consumer demand for EV vehicles are a bright spot. We maintain Buy rating on the stock with revised FV at Rs 500 (from earlier Rs 470) as of September 2024 e (June 2024 AD already).
Crisil:
CRISIL shares are at lower levels on BSE 3,261.60 each. The market cap of the company is 23,824.25 crores.
Shares of CRISIL have gained over 27% in one year. shares were around 2,566 each on August 12 last year.
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