Rakesh Jhunjhunwala Portfolio: Best stock holdings 2023

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Over the course of Rakesh Jhunjhunwala’s investment career, he managed to turn a relatively modest amount of capital into a vast fortune. Beginning with an initial investment of ₹5,000 in 1985, he amassed significant wealth, with his portfolio growing into US$5.8 billion at the time of his death.

Hello, friends! It’s that exciting time again where we pull back the curtain and take a peek into the thrilling world of stock investing. Today, we’re diving deep into the portfolio of a man who has not only revolutionized investing in India but also has become a symbol of wealth creation – Mr. Rakesh Jhunjhunwala, fondly known as the Warren Buffet of India. Buckle up because it’s going to be an enlightening ride!

Before we unravel the top companies in his portfolio for 2023, let’s take a moment to appreciate the investing genius of this man. Rakesh Jhunjhunwala, often referred to as the ‘big bull’ of the Indian stock market, is a revered figure in the world of investing. His investment strategies, rooted in both value and growth investing principles, have made him one of the most successful investors in India. The extraordinary knack he has for identifying high-potential companies and sticking with them through thick and thin is something every investor can learn from.

Who in Rakesh Jhunjhunwala?

Rakesh Jhunjhunwala, born on 5 July 1960, was an esteemed Indian billionaire, Chartered Accountant, and stock trader with a net worth of US$5.8 billion at his passing in 2022. Beginning his investment journey in 1985 with ₹5,000, he notably profited in various ventures, with his most substantial investment being in Titan Company, valued at ₹7,294.8 crore in 2021.

Besides his investment activities, Jhunjhunwala chaired companies like Aptech and Hungama Digital Media Entertainment and was a significant stakeholder in Akasa Air, holding 46% of the company before his demise. He was often nicknamed the “Big Bull of India” for his bullish market predictions and insights.

Top 10 Companies in Rakesh Jhunjhunwala’s 2023 Portfolio

So, without further ado, let’s open Pandora’s box and reveal the top 10 companies in Mr. Jhunjhunwala’s 2023 portfolio. You’ll find a mix of companies from different sectors, reflecting his diversified approach to investing.

Titan Company

Market Cap: ₹2,70,815 Cr
Current Price: ₹3,050
P/E: 84.2
Promoter Holdings: 52.90%

Titan has been a long-term favorite of Mr. Jhunjhunwala, and it continues to be a significant part of his portfolio in 2023. Despite its premium valuations, Titan’s consistent growth story, robust balance sheet, and dominance in the jewellery and watch sector make it a promising bet. Furthermore, its foray into the eyewear and fragrances sector adds another growth dimension to the company’s prospects.

Crisil

Market Cap: ₹27,896 Cr
Current Price: ₹3,816
P/E: 46.3
Promoter Holdings: 66.67%

Crisil, a leading analytics company providing ratings, research, and risk and policy advisory services, has been another mainstay in his portfolio. The company’s dominant market position, coupled with its strong cash generation capabilities and the growing demand for risk advisory services, makes it a compelling choice for investors.

Lupin

Market Cap: ₹48,598 Cr
Current Price: ₹1,068
P/E: 50
Promoter Holdings: 47.07%

In the pharmaceutical sector, Lupin remains his top pick. The company’s robust product pipeline, strong R&D capabilities, and its focus on the lucrative US generics market bode well for its future growth prospects.

Federal Bank

Market Cap: ₹31,511 Cr
Current Price: ₹134
P/E: 9.24
Promoter Holdings: 0%

In the banking space, Federal Bank has been Mr. Jhunjhunwala’s pick. The bank’s strong retail franchise, healthy capital ratios, and its improving asset quality make it a strong contender for growth in the banking sector.

Rallis India

Market Cap: ₹4,242 Cr
Current Price: ₹218
P/E: 48.4
Promoter Holdings: 50.09%

Rallis India, a Tata Group firm, forms an integral part of his portfolio. The company, with its strong product portfolio, is poised to benefit from the burgeoning demand in the agri-sector. The company’s foray into the high-growth nutraceuticals space is another exciting development.

NCC

Market Cap: ₹9,550 Cr
Current Price: ₹152
P/E: 14.4
Promoter Holdings: 22.00%

NCC, a leading construction company, is another stock where Mr. Jhunjhunwala has a significant stake. With a large order book, improved execution, and the government’s heightened focus on infrastructure development, NCC seems well-positioned for future growth.

Delta Corp

Market Cap: ₹4,839 Cr
Current Price: ₹181
P/E: 17.8
Promoter Holdings: 33.28%

In the entertainment industry, Delta Corp, the only listed company engaged in the casino (live, electronic, and online) industry in India, has been a big winner in his portfolio. With the growing acceptance and legalization of gambling in several states, Delta Corp is well-positioned to capitalize on this opportunity.

VIP Industries

Market Cap: ₹9,631 Cr
Current Price: ₹679
P/E: 58.1
Promoter Holdings: 51.3%

VIP Industries, the luggage maker, is another jewel in his portfolio. The company, with its strong brand value, diversified product range, and increasing travel trends, looks set for significant growth in the post-pandemic world.

Escorts Kubota

Market Cap: ₹37,618 Cr
Current Price: ₹2,851
P/E: 45.8
Promoter Holdings: 67.65%

Escorts, a leading tractor and construction equipment manufacturer, is a key component of his portfolio. Given the strong focus on agricultural growth in India and the increasing mechanization of farming, the company’s prospects look promising.

Agro Tech Foods

Market Cap: ₹1,988 Cr
Current Price: ₹816
P/E: 102
Promoter Holdings: 51.77%

Lastly, Agro Tech Foods, a subsidiary of ConAgra Foods, completes the list. With its range of popular food products and the rising trend of convenience foods in India, Agro Tech Foods looks like a tasty prospect.

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Conclusion

Wow, that was quite a journey, wasn’t it? Taking a look into the portfolio of India’s most celebrated investor, Rakesh Jhunjhunwala, is always a learning experience. His choices reflect a balanced mix of growth and value stocks across diverse sectors. His investing acumen and the ability to identify strong businesses with robust prospects can inspire us all.

However, as we end this exciting exploration, it’s important to remember that investing is not about blindly copying a portfolio. Each investor must do their due diligence and understand their risk appetite and financial goals before investing. As the timeless saying goes, “Invest in what you understand.”

So, as we explore and learn from successful investors like Rakesh Jhunjhunwala, our ultimate goal should always be to build a portfolio that aligns with our personal financial objectives. Investing is a marathon, not a sprint. It requires patience, discipline, and a clear understanding of one’s financial goals.

What did we learn?

1 Who in Rakesh Jhunjhunwala?
2 Top 10 Companies in Rakesh Jhunjhunwala’s 2023 Portfolio
3 Conclusion

Author: Sourabh