Rakesh Jhunjhunwala‘s magnificent multi-bagger stock portfolio has been bearing the brunt of the savage Bear attack since January 2011 though it is thanks to his deft handling that the Bears haven’t been allowed to totally plunder the portfolio of all of its riches.
We have been tracking Rakesh Jhunjhunwala‘s official declared portfolio since December 2010 when the stock market touched great heights. The first alarm bells came in January 2011 when we noted that the Oracle of Mumbai had lost Rs. 157 crores. That got us worried but only just. When we took stock of his portfolio in February 2011, we were shocked to learn that the master investor was poorer by Rs. 400 crores. Then, while we knew that things were not looking very bright thanks to the marauding bears that seem to have taken a tight grip over Dalal Street, he managed to turn the tables on the Bears and eked out a gain of Rs. 129 crores.
It must be said that Rs. 129 crores, which is just 3.24% of Rakesh Jhunjhunwala’s portfolio of Rs. 3,983 crores is a very modest figure. His gains would have been much higher (nearly Rs. 480 crores) had it not been for the crippling losses that some worthless stocks caused the portfolio to suffer.
Rakesh Jhunjhunwala follows a strict policy of “Reward the Winners and Fire the Losers”. However, despite his eagle eye, some rotten stocks do manage to creep in and contaminate the multibagger portfolio.
Leading the fall in absolute terms was the master’s one time favourite stock Bilcare. In 2003, Rakesh Jhunjhunwala had heaped lavish praise on Bilcare saying "it will be among the top companies of the world in the pharmaceutical package". He also said about Bilcare “this stock will give mind-boggling returns”. Bilcare lost 51.20 crores constituting 38.76% of the hard earned money invested in it.
Lupin, a stock still dear to Rakesh Jhunjhunwala, and one of his earliest multibaggers, lost Rs. 48.55 crores and became the second biggest loser.
Hindustan Oil Exploration, a stock with which Rakesh Jhunjhunwala has stood through thick and thin, over the past 10 years, also disappointed, giving away Rs. 41.85 crores to the bears.
The relentless bears claimed their third victim in Geojit BNP Paribas, the worthless stock-broking stock which lost Rs. 39.24 crores of Rakesh Jhunjhunwala‘s precious wealth. Rakesh Jhunjhunwala would be hard pressed to explain why he invested in this Bakwas stock which has never given him even a day’s pride of possession.
NCC, which was at one time Rakesh Jhunjhunwala‘s blue-eyed stock and which also was his earliest multibaggers, was done in by the pessimism gripping the infrastructure sector and lost a whopping Rs. 36 crores.
Karur Vyasa Bank is Rakesh Jhunjhunwala‘s apple-of-the eye stock. The master investor never has a harsh word to say about Karur Vyasa Bank because no other stock has rewarded him as much as Karur Vyasa Bank. Low Profile, unassuming and down-to-earth but a fabulous multibagger nevertheless. Sadly, the inflation and shrinking NIMs took their toll on Karur Vyasa Bank and it deprived Rakesh Jhunjhunwala of Rs. 26.83 crores.
Among the other notable losers are Orchid Chemicals (Rs. 21.46 crores), IFCI (Rs. 15.48 crores), Punj Lloyd (Rs. 14.61 crores) and Praj Industries (Rs. 13.79 crores).
Geometric is one stock where one has to feel sorry for Rakesh Jhunjhunwala. In 2003, the Oracle of Mumbai was so confident about Geometric that he called it "the biggest element of enterprise software".
Rakesh Jhunjhunwala kept his faith in Geometric, nurturing it over the past several years. Even though all other stocks in the portfolio turned into multibaggers to reward Rakesh Jhunjhunwala, Geometric has kept him waiting. Over the past 8 years, Geometric has returned a miserable aggregate return of 15%. One can’t understand what the master investor sees in Geometric that he continues to keep it in his precious portfolio.
Rakesh Jhunjhunwala‘s crown jewel Titan Industries was worth every penny of respect that India’s greatest investor has heaped on it. We reported earlier that he picked up Titan Industries in 2001 when it was languishing at Rs. 60 (pre split, bonus). Rakesh Jhunjhunwala exhorted everyone at the public meeting to buy Titan Industries. Two years later, in 2003, when Titan Industries had doubled to Rs. 120, the master still exuded supreme confidence and told investors to buy Titan. Titan Industries has richly rewarded Rakesh Jhunjhunwala with a 3500% return making it a fabulous multibagger. Today, from January 2011 itself, Titan Industries has given Rakesh Jhunjhunwala a profit of Rs. 323 crores, being 25% of his investment of Rs. 1,627 crores (present value).
CRISIL would have also brought some respite to Rakesh Jhunjhunwala with its gain of Rs. 108 crores. VIP Industries, a stock that we were too afraid to buy even though we knew that one should just follow the master investor has given gains of Rs. 36.41 crores, a fabulous return of 33.14% since January 2011.
Names of shares in which Rakesh Jhunjhunwala has holdings
Rakesh Jhunjhunwala Stock Portfolio 2011