Rakesh Jhunjhunwala Model Portfolio Makes 35% Gain

Titan Industries, as usual, was leading from the front with gains of nearly 60%. There is a reason why Titan Industries is Rakesh Jhunjhunwala’s crown jewel stock. Its’ powerful brand name, marketing muscle, pricing power and ambitious management make it a must-have for every portfolio.

HDFC Bank is of the same quality as Titan Industries. Both these stocks are old war horses who have the guts and gumption to stay on in the battlefield and fight. These stocks are meant to be kept in the core portfolio as crown jewels.

Bajaj Auto is another superb stock with all the right attributes of brand name, management quality and marketing muscle. It has been quite subdued and has under-performed. However, its’ day will come sooner or later.

Hawkins & Page are great mid-cap stocks that also have terrific market presence with their brands and marketing muscle. These stocks will benefit from the great Indian consumption story and have a lot of steam left in them.

Two stocks that may have to be gently shown the door are Coal India and Power Grid. There is nothing wrong with these two venerable PSU powerhouses & they will continue to enrich shareholders in the many years to come.

However, the question is whether there are other stocks in the reckoning with more energy to run the course more speedily? As stock pickers, we are not content with a good stock if there is a better stock available.

VST Industries is another venerable stock that may have to be respectfully escorted to the door, though it has contributed a mammoth 60% to the Model Portfolio. VST Industries’ rapid price rice, coupled with the diminishing prospects of the sunset Industry that it engaged in, mean that the prospects of more gains look difficult. So, it may be better to cash in when the goings good.

Among the high-growth stocks that I am looking at to replace the venerable trio of Coal India, Power Grid and VST Industries are Amara Raja Batteries, IPCA Labs, Cera Sanitaryware, Kajaria Ceramics, Symphony Industries & Supreme Industries. I have also got my eye on South Indian Bank.

Hopefully, a correction in the stock prices will make the decision taking easy 🙂

Disclaimer: This is an imaginary portfolio named “Rakesh Jhunjhunwala Model Portfolio” in honour of the Badshah of Dalal Street. The Badshah has nothing to do with this Portfolio. The Badshah’s official & real-life portfolio is here