Rakesh Jhunjhunwala Model Portfolio Gives 30% Return

Titan Industries, as usual, was leading from the front, with a fabulous return of 44%. Titan Industries is a stock that you just cannot put down. It lives up to the reputation of being Rakesh Jhunjhunwala’s crown jewel stock. That we were able to pick up the stock at the rock-bottom bargain basement price of Rs. 188 is quite a wonder. We should have bought truck loads of the stock. For temporary periods, Titan Industries does slide into under-performance. However, that is the time to quietly load onto the stock when nobody’s looking.

The decision to add Hawkins Cookers to the Model Portfolio in August 2012 was a sensible one. Hawkins Cookers, with absolute gains of 22% in such a short period, is like a coiled spring, waiting to explode. As soon as the pollution and labour problems are resolved, one can expect Hawkins Cookers to gallop to catch up with its illustrious peer TTK Prestige.

Coal India and Power Grid are Blue Chip Navaratna stocks, operating in a monopoly. Your money in these stocks is as safe as it is in a bank locker.

There may be temporary turbulence like the Coalgate scam and other unsavoury incidents but these are really buying opportunities because the long-term story of both PSU stocks is intact.

Page Industries is quoting at frightening valuations. However, as Rakesh Jhunjhunwala himself often says, there is no need to be afraid of high PE stocks so long as the growth story is intact. We saw that in stocks like Nestle, Asian Paints, Colgate, HDFC Bank and Gruh Finance which, despite high valuations, continue to generate wealth for their shareholders. Bharat Shah, ASK Investment Managers, also explained the position of why investors need not be afraid of high PE stocks beautifully.

Page Industries’ prospects continue to be very good given their strong brand name, quality product and the burgeoning youth population in the Country.

Bajaj Auto, which is also Shankar Sharma’s favourite stock, has been sluggish owing to the high interest rates and the poor macro environment. However, given its stellar brand image, reputed management and quality product, one can be sure that when interest rates ease, Bajaj Auto will make up for lost time by posting double digit gains.