Ace investor Rakesh Jhunjhunwala has earned over 100% percent returns from four stocks in his portfolio during last five years. Jhunjhunwala, often referred to as Warren Buffett of Indian markets, had 26 stocks in his portfolio as of June 2020.
While some of these stocks have not performed well during last one year, others have outperformed the broader indices, adding to net worth of the billionaire investor. Here's a look at four of them which have doubled his wealth in last five years.
Share price of Escorts Ltd in which Jhunjhunwala held 91 lakh shares or 7.42% stake at the end of March quarter has rallied 772% in five years. Jhunjhunwala first bought 50 lakh shares of the company in the September 2013 quarter.
On July 10 in 2015, Escorts share price stood at Rs 133.20 on BSE. The large cap stock hit an all time high of Rs 1,139 today. Compared to Escorts stock, Sensex has gained 32% during the period.
The stock has risen 4% in last two days. The stock hit its 52-week low of Rs 423.30 on August 23, 2019. Escorts reported a 9.71 per cent rise in Q4 net profit at Rs 127.73 crore against Rs 116.42 crore profit in January-March period of 2018-19.
Total income of the company fell to Rs 1,415.95 crore during the fourth quarter against Rs 1,668.72 crore in the corresponding period a year ago. Escorts Limited is an engineering company, which offers agricultural tractors and construction equipment. The company's segments are agri machinery, auto ancillary products, railway equipment, construction equipments and others.
His investment in the stock of water and environment management firm Ion Exchange too has doubled in last five years. Jhunjhunwala held 7.75 lakh shares or 5.29% stake in the firm at the end of March quarter.
Jhunjhunwala bought the Ion Exchange stock for first time in December 2007 quarter. He held 2.53% stake or 3,19,000 shares of the firm in the end of December quarter that year.
In last five years, Ion Exchange shares have gained 173.52% on BSE. However, the stock has lost 4.77% in last six days.
The stock hit its 52-week low of Rs 502 on March 24,2020.
Ion Exchange reported a 16.56% fall in net sales to Rs 361.99 crores in Q4 compared to Rs 433.82 crores sales during the quarter ended March 31, 2019. Net profit fell 21.13% to Rs 27.96 crore in Q4 against Rs 35.45 crore profit in Q4 of 2018-19.
Similarly, share of VIP Industries has gained 164% in last five years. Jhunjhunwala held 75 lakh shares or 5.31% stake in the luggage and travel accessories firm at the end of March quarter this year. Jhunjhunwala raised stake in VIP Industries during March quarter of FY20. The stake was increased by 2.85 lakh shares. Jhunjhunwala held a total of 75,00,400 shares in the January-March quarter as against 72,15,400 shares of the company in Q3FY20.
The stock closed 0.22% higher at Rs 255.35 today. Market cap of the firm rose to Rs 3608 crore on BSE. It stands higher than 50 day moving averages but lower than 5 day, 20 day, 100 day and 200 day moving averages.
However, VIP Industries share has lost 39.91% in one year and fallen 40.91% since the beginning of this year. In one month, the share has gained 0.75% against 6.85% rise in Sensex.
VIP Industries reported a consolidated net profit of Rs 9.52 crore for the quarter ended March 31, 2020 against profit of Rs 25.28 crore for the corresponding period of the previous fiscal.
Consolidated revenue from operations stood at Rs 311 crore for the quarter under consideration as against Rs 434 crore for the same period year ago.
VIP Industries, the flagship company of DG Piramal Group, was established in 1968. It began manufacturing suitcases in 1971. The company operates in luggage and moulded furniture segments.
Jubilant Life Sciences
The stock of pharma firm Jubilant Life Sciences too has added to the ace investor's fortunes in last five years. The successful investor held 4.41% stake or 70.24 lakh shares in Jubilant Life Sciences at the end of March quarter this year.
The mid cap stock has delivered 251% returns for its investors in last five years. The stock ended flat at Rs 710 on BSE today. It touched an intra day high of Rs 723.9, up 2.17% on BSE.
The stock ended higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages. The stock has risen 48.44% during the last one year and gained 32.34% since the beginning of this year. The pharma stock has gained 24% in one month.
Market cap of the firm ended at Rs 11,314 crore. Jhunjhunwala increased his stake to 4.41% in Q4 compared to 3.45% shareholding for the quarter ended December 2019.
Jubilant Life Sciences reported a consolidated net profit of Rs 260.49 crore for the quarter ended on March 31, 2020, driven by robust sales in pharmaceuticals segment. The company reported a net loss of Rs 100.65 crore for the corresponding period of the previous fiscal. Consolidated revenue from operations stood at Rs 2,391.41 crore for the quarter under consideration as against Rs 2,385.58 crore for the same period year ago.