Jhunjhunwala portfolio stocks: What brokerage firms say about the top five bets

Rekha Rakesh Jhunwalawal, spouse of late legendary investor Rakesh Jhujhunwala, is now the biggest individual investor in India. She holds 26 stocks with a net worth of over Rs 50,980 crore in her portfolio, as per the latest corporate shareholdings filed, which were made in name of Rakesh Jhunjhunwala, Rekha Jhunjhunwala, Rare Enterprises and various other entities.

Top five investment bets in Rekha Rakesh Jhunjhunwala's portfolio includes two Tata Group companies- Titan Company and Tata Motors, recently listed Concord Biotech, their promoted entity Star Health and Allied Insurance Company; and lastly Metro Brands, which cumulatively constitute about Rs 35,000 crore or more than two-third of the portfolio.

Brokerage firm Prabhudas Lilladher (PL) has maintained its 'buy' view on Tata Motors with a target price of Rs 1,010, while Julius Bar had downgraded the stock to 'hold' rating on the stock with a target price of Rs 975 on the stock,

"We maintain our positive stance on Tata Motors given JLR’s volume ramp-up resulting in strong revenue, profitability and FCF; India CV benefitting from underlying economic strength, benign input costs and lower discounts; and focus on market share in PV segment led by model launches and rising EV penetration," said PL. It increased Ebitda estimates for next two years by 2-6 per cent.

Tata Motors is expected to continue seeing healthy performance in both JLR/SA, driven by cyclical recovery, new launches, better mix, cost-cutting initiatives, and deleveraging, said Julius Bar. "However, post the recent sharp run up and with limited upside target of INR 975, we downgrade Tata Motors to Hold and would look for better entry opportunities."

Titan’s top line grew 22 per cent YoY, while jewellery sales grew 24 per cent YoY. Festive purchases resulted in double-digit buyer growth in jewellery; moderation was seen after November 2023 though. Consolidated Ebitda margin contracted 55 bps YoY. Jewellery Ebitda margin contracted by 47 bps due to higher marketing spends to defend market share and lower studded ratio, said HDFC Securities.

HDFC Securities has a 'sell' rating on Titan Company with a target price of Rs 2,750, while Motilal Oswal and Sharekhan have assigned buy rating to the stock with the target price of Rs 4,200 and Rs 4,112 apiece, respectively.

Rekha Rakesh Jhunjhunwala owned 4,76,95,970 equity shares, or 5.37 per cent stake worth Rs 17,500 crore in Titan Company as of December 31, 2023. Her stake in Tata Motors stood at 5,32,56,000 equity shares, or 1.6 per cent as of the same date, which is valued around Rs 5,000 crore.

Featured in the promoters list, Jhunwjhunwala owned 10,07,53,935 equity shares, 17.22 per cent stake in Star Health and Allied Insurance Company as of the quarter ended on December 31, 2023. Her stake is valued around Rs 5,700 crore.

Commeding on to Q3 results, Nuvama Institutional Equities said that Star Health reported 16.4 per cent YoY growth in GWP, but lower retention led to growth of just 7.1 per cent YoY in NWP. Strong investment yield and lower shareholder expenses lifted APAT 37.6 per cent YoY, it said.

"We expect higher loss ratios to partially offset the increased premiums; accordingly, we are increasing CoR estimates, leading to a cut in FY25E/26E APAT by 6.7/1.2%. We are rolling forward the valuation to FY26E and paring our long-term growth projections,
which lowers our DCF-based target price to Rs 680," it added with maintaining buy rating on the stock.

While FY24 new business growth is muted, it is unlikely to bounce back, based on structural tailwinds, said ICICI Securities, which maintained ‘buy’ with a revised target price at Rs 728 based on 35 times FY26E EPS of Rs 20.8. "We have rolled forward our estimates to FY26 '' it said.

Global brokerage firm and Choice Broking initiated coverage on recently listed Concord Biotech about a month ago. Three trust's of Jhunjhunwala cumulatively owned 2,51,99,240 equity shares, or 24.09 per cent stake in the pharmaceutical company, amounting to more than Rs 3,600 crore.

Citi noted that Concord Biotech has a very unique business model which is difficult to replicate. The company’s long growth runway is bolstered by segment tailwinds like the growing number of organ transplants, execution track record and capacity utilisation, it said in the IC report. It gave a 'buy' rating on the stock with a target price 1,720, while Choice had a 'buy' with a target price of Rs 1,715.

Dolat Capital downgraded Metro Brands to 'accumulate' after Q3 results with a target price of Rs 1,301. Nuvama has a target price of Rs 1,365 with a 'buy' rating. Rekha Rakesh Jhunjhunwala owned 2,61,02,394, or 9.6 per cent stake in Metro Brands as of Q3FY24, worth about Rs 3,000 crore.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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