Rekha Jhunjhunwala portfolio stocks: 8 of 10 top shares beat Sensex return in 2023

Eight out of 10 top holdings (in value terms) of Rekha Rakesh Jhunjhunwala beat Sensex return this calendar so far. Six of the 10 stocks, where Jhunjhunwala's ownership is in excess of Rs 1,000 crore, delivered over 20 per cent returns, data compiled from corporate database AceEquity suggests. 

Rekha Jhunjhunwala's biggest holding Titan Company has delivered 26.51 per cent return against a 7.83 per cent rise in the 30-pack index. Earlier this month, Motilal Oswal in a note suggested that the Tata group firm has a strong earnings growth visibility. The brokerage said the recent run-up in gold prices led to near-term postponement of demand, but Titan Company has historically performed well when gold prices surged. The average target price for Titan Company at Rs 3,194, however, suggests upside capped for the stock.

Jhunjunwala held 5.36 per cent stake in Titan Company as of June 30, which is worth Rs 15,520.60 crore at the prevailing market price.

Star Health and Allied Insurance Company Ltd, where the Jhunjhunwala family owned about 17.3 per cent stake worth Rs 5,940 crore, has risen a mere 2.71 per cent this calendar.

"Star Health’s current tussle with Ahmedabad’s hospital association is indicative of the larger trust deficit between insurers and hospitals in the industry. We believe a holistic solution to this issue would require industry-wide collaboration between insurers, but also the digital health stack could smoothen processes much more," CLSA said last week.

CLSA said it sees resolution on the matter in the next few weeks and sees a limited impact on Star’s estimates, even if a decision is at the extreme end of the spectrum. The brokerage has a target of Rs Rs 700 on the stock.   

Tata Motors, Jhunjhunwala's third biggest bet by value, climbed 59.39 per cent this year. Motilal Oswal said it is on Tata Motors on account of healthy recov ery, better mix, lower discounts and operating leverage. It said the Tata group firm's commercial vehicle business is on a strong footing and is primed for a strong cyclical recovery while adding that the refreshed product portfolio will enable a sustained recovery in its passenger vehicle business.

Metro Brands climbed 21 per cent year-to-date. Jhunjhunwala owned 26,102,394 shares, or 9.60 per cent, stake in this company worth Rs 2,850 crore. Nuvama Institutional Equities said the stock is largely priced in all positives for near term and is awaiting incremental triggers.

The brokerage has a 'Hold' rating on the stock as the stock has risen 30 per cent since its initiation report, which it says 'caps upside'.

"We do not see a case for higher multiples or upgrades. In fact, the current demand slowdown stays a headwind. Re-rating triggers ahead are sustained outperformance on productivity and/or visibility of scalability and profitability in Walkway and Fila," Nuvama said.

In total, Jhunjhunwala's holding in 10 stocks stood at Rs 35,237 crore. Crisil, Jhunjhunwala's fifth biggest holding, is up 27 per cent YTD. Canara Bank rose 12 per cent while NCC rallied 77 per cent this year. Indian Hotels (up 28 per cent), Fortis Healthcare and Federal Bank (7 per cent) return also delivered positive returns for the year so far.

In the case of NCC, the company recently received an arbitration order in the SEIL Energy India. JM Financial said the prolonged arbitration with SEIL has been an overhang on the stock and an unrequired distraction which shadows the impressive turnaround in the company's operating performance.

 

"In our view the stock does not factor any expectation of cash inflow from this arbitration. Hence a cash inflow, though lower than the management's expectation, is still a positive," it said while suggesting a target of Rs 180 on the stock.

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