Rakesh Jhunjhunwala, the Badshah of Dalal Street, never ceases to amaze. The gain or loss that he makes in one single day is more than the entire portfolio size of several big-ticket investors.
Yesterday, Rakesh Jhunjhunwala achieved the remarkable feat of gaining a mammoth amount of Rs. 260 crore in a single day after his crown jewel stock, Titan Industries, surged on the back of strong Q3FY15 results.
Today, 29th January 2015, Rakesh Jhunjhunwala bought a chunk of stock in a small cap company called “Man Infraconstruction”. The Badshah bought 30,00,000 shares at Rs. 36 each, making an investment of Rs. 10.80 crore.
| Man Infra Q2FY15 Results | |||
|---|---|---|---|
| Particulars (Rs cr) | Sep 2014 | Sep 2013 | %Chg |
| Net Sales | 66.63 | 88.53 | -24.74 |
| Other Income | 33.5 | 10.87 | 208.19 |
| Total Income | 100.12 | 99.41 | 0.71 |
| Total Expenses | 62.13 | 83.78 | -25.84 |
| Operating Profit | 37.99 | 15.63 | 143.06 |
| Net Profit | 23.16 | 7.7 | 200.78 |
| Equity Capital | 49.5 | 49.5 | – |
The unique aspect of Man Infra is that it is involved in both activities, real estate and contracting. It is an integrated EPC (Engineering, Procurement and Construction) company with strong focus on Road, Port, Residential, Commercial and Industrial construction segments.
In the real estate segment, the Company has a number of on-going projects, including one for Tata Housing of 8 towers at Mulund, Mumbai. There are a couple of other residential and commercials building projects being executed.
In the contracting segment, Man Infra appears to have only one on-going BOT project, which is the Hadapasar-Saswad road in Pune. The length of the road is 41 km and the estimated cost of the project is Rs. 424 crore.
The other remarkable aspect of Man Infra is that it is a near zero debt Company with cash and cash equivalent of Rs. 111 crore as on March 31, 2014.
The future prospects for Man Infra appear to be bright if you bear in mind the fact that the entire construction and road space will open up. It is expected that there will be Rs. 600 billion investments in new ports and airports, power projects, waterways, urban and rural infrastructure and road building. Another area of opportunity is that of redevelopment of old buildings. According to a report in the DNA, about 17,000 old buildings in South Mumbai alone are going in for redevelopment. There are thousands of other buildings all over the city which can be candidates for redevelopment.
One indication that Man Infra is on a strong footing comes from its Q2FY15 results.
Of course, the unanswered question is why Rakesh Jhunjhunwala would be interested in Man Infra given its small size. The amount invested by him in the Company is not even equal to petty cash by the Badshah’s standards. Even if the stock triples or quadruples, it won’t “move the needle” for Rakesh Jhunjhunwala.
yes as gud as petty cash for him
10cr
hope there are guys after him like he bought spice jet
he can wait
He will take his yearly expenditure from this counter in next few sessions.. 🙂
In reply to your last para., I would like to say something. It is that your Badshah nowadays do short term trading and speculation. It is heard that he also allow some parties to use his name for commission. As u said, it is small money for Badshah, he will not mind, if he incurs loss in it. But, the small investors who will follow him will go for huge loss. If u study, lot of his buys in recent times are not working or he has left them half way picking profit. Hope, u will take it in right spirit.
Arjun,
Finally you wrote an article on jhunjhun, good one though!!! it is quite surprising to see a construction & EPC company to have cash on its balance sheet with no Debt.
Regards
Bhs
Hi, check Intrasoft Tech; only listed e-commerce company listed in India
definetly he has been dubious some deals
i always wonder why this guy buy stocks like spicejet,man infra ,sterling resorts ,delta corp just investing 10 –11 crores which is paltry sum for him must be reason other than investing or trading
to be like Warren buffet, you need to match his ideals and value system. Lending investing name for commission and token investment in lagging scrips is not what Warren Buffet would ever do. Desi log, Desi soch, kitna bhi paisa ho jaye.
However, in this case, I would still give benefit to RJ, especially as there has been no report to the contrary. I think in the last few months, RJ has publicly said that the days of 100 baggers are gone, and in fact it will be increasingly difficult to pick multi-baggers. Pleased to note that his comments still reflect the confidence, vision and maturity that comes with very successful investing over two decades. I just wish that maru’s gave back more to society generally , appears to be largely limited to their community.
good to learn about RJji
RJ is probably the few creditable investors in the market…he does not shout about his investments…. if the returns are good and if they work he holds them or else he sells them, like any other investor…at least he is honest and transparent …he has made investments in well known profitable companies…Lupin, Titan, Karur Vyasa Bank, CRISIL…and he has made investments in duds also…there will always be hits and misses
Please aap log kuch bhi bura bolne se pahle ye to soch liya karo ki jis insaan ke khilaf mien bol rahe ho uske 1% talent bhi aap mien hai ki nahi. Please respect his talent and leave this 18th century bandhua majdur of foriegner mindset. Only just because of this kind of mindset talented people always left our country. Please wake up guys. And try to learn from any knowledgeble person and waste your time in going against them. Jai Hind………..A comman man