Rakesh Jhunjhunwala Stock Portfolio - July 2021 - New Additions and Exits compared to previous quarter

Rakesh Jhunjhunwala Stock Portfolio – July 2021 – New Additions and Exits compared to previous quarter

Rakesh Jhunjhunwala Stock Portfolio - July 2021 - New Additions and Exits compared to previous quarterRakesh Jhunjhunwala Stock Portfolio – July 2021

Many of us follow Indian Warren Buffet Rakesh Jhunjhunwala’ s stock portfolio and check for new additions and exits. These details are available after the quarter is passed and currently, we have partial information about his Q1 (Apr-21 to June-2021) portfolio about new stock additions, exits and portfolio value changes. This article provides Rakesh Jhunjhunwala Stock Portfolio additions, exits and portfolio changes that can be tracked for July, August and September 2021.

Also Read: Check the Rakesh Jhunjhunwala’s penny stocks portfolio

How do we track this portfolio?

There are a few websites where they indicate month on month stock portfolio of Rakesh Jhunjhunwala, however the authentic way is to check the filing done by the respective Rakesh’s companies or the companies where he and his wife (Rekha Jhunjhunwala’ s related companies) has invested.  Generally, these are done once the quarter is over. As we move along in the first month of the subsequent quarter, we may find partial information. By the time, we get complete portfolio info, it might take several weeks, or months and we may miss some opportunities. Currently we have information about few stocks where Rakesh Jhunjhunwala added / increase / reduce in stake / exited from stocks.

Changes in Rakesh Jhunjhunwala Stock Portfolio in Q1 compared to previous quarter

As per the filing information available, Rakesh Jhunjhunwala has made following changes in his portfolio for Quarter-I (Apr-2021 to Jun-2021) quarter.

Rakesh Jhunjhunwala Stock Portfolio - Additions, Exits and portfolio changes Chart

New AdditionsThere is one stock added SAIL (Steel Authority of India Limited)

Increase in Stake – There is increase in stake in Edelweiss Financial Services from 1.2% (Last Quarter) to 1.6% (Apr to Jun-21 Qtr).

Reduction in Stake  – There is reduction of stake in Autoline industries from 5.6% to 4.6% in Q1 compared to previous quarter.

Rakesh Jhunjhunwala has reduced stake in his favorite Titan Company from 5.1% (Last qtr) to 4.8% (Q1). In the last 8 quarters, there is reduction of stake from 7.1% to 4.8%.

Jhunjhunwala reduced 0.2% stake from Tata Motors from 1.3% to 1.1% in Q1.

Another company where Jhunjhunwala held stake for long time, but reduced minor change is from Aptech Limited – 23.8% to 23.7% in Q1 compared to previous quarter.

Exits – As per the latest filing, there are no stocks exited. However, there are 18 stocks invested by their firms for Jan to Mar-2021 period for which filing is awaited.

More info on Additions / portfolio changes in Rakesh Jhunjhunwala Latest Portfolio in July-2021

These observations are based on filings available. Wherever filing is not available, we would update in subsequent articles.

1) New addition – Steel Authority of India (SAIL)

We could see Metal stocks rising due to various reasons like commodities super cycle and demand-supply gap. If you observe, almost 9 out of 10 metal stocks have increased between 20% to 70% in the last few months. Deep production cuts in China and restrictions on steel exports is also one of the reasons for the increase in the steel prices. These factors are pushing SAIL share price upwards.

Financial Performance

SAIL standalone revenues increased from Rs 44,452 Crores in FY2017 to Rs 69,110 Crores in FY2021.

It has posted loss of Rs 2,833 crores in FY2017 Vs profits of Rs 3,850 Crores in FY2021.

Positive Points

We could see book value per share is improving in the last couple of years.

FIIs / FPIs have been increasing their stake in the recent quarters.

Negative Factors

On the other side, mutual fund houses have been reducing their shareholding in this company.

Share Price Performance

This stock has rallied and gave 250% returns in last 1 year and 40% returns in the last 3 months.

Currently this stock is showing neutral on technical charts. This could be due to low interest by investors over PSU Stocks. But we may see some traction based on positive news of Rakesh Jhunjhunwala taking a bite of the shareholding.

2) Increase in Stake – Edelweiss Financial Services

Jhunjhunwala has increased the stake from 1.2% to 1.6% in Q1 compared to previous quarter.

Financial Performance

Edelweiss Financial Services consolidate revenues increased from Rs 5,253 Crores in FY2016 to Rs 9,513 Crores in FY2020. Its FY2021 nos are not available yet.

Its margins were at Rs 335 Crore in FY2016, however incurred losses of Rs 2,043 Crore in FY2020.

Positive Points

Company has zero promoter pledge.

Strong momentum in share price in short term, medium term and for long term.

Negative Factors

It has posted losses for continuous 4 quarters (Mar-20 Qtr onwards to Dec-20 Quarter). This is majorly due to high interest payments.

Company has high interest payments

Credit rating agencies have downgraded Edelweiss and its few other subsidiaries credit rating from A+ to AA- last year.

Share Price Performance

This stock gave 31% returns in the last 1 year and 46% returns in the last 3 months.

On the technical charts, the stock looks VERY BULLISH.

3) Reduced stake – Autoline Industries

Jhunjhunwala has reduced 1% stake from this Auto Ancillary company from 5.6% to 4.6% in Q1 compared to previous quarter.

Financial Performance

Autoline Industries consolidated revenues reduced from Rs 359 Crores in FY2017 to Rs 284 Crores in FY2021.

It incurred loss of Rs 71 Crores in FY2017 Vs Loss of Rs 40 Crores in FY2021.

Positive Points

Promoter Shareholdings increasing quarter on quarter.

Company with decreasing promoter pledge.

Strong share momentum based on short term, medium term and long term moving averages

Negative Factors

Its revenues are fluctuating and declining.

Company has been incurring losses in the last 5 years.

Share Price Performance

This stock gave 155% returns in the last 1 year and 40% returns in the last 3 months.

On the technical charts, the stock looks VERY BULLISH.

4) Reduced stake – Titan Company

Jhunjhunwala has reduced the stake from his favorite company from 5.1% to 4.8% in Q1 compared to previous quarter.

Financial Performance

Titan consolidate revenues increased from Rs 13,260 Crores in FY2017 to Rs 21,644 Crores in FY2021.

Its margins have increased from Rs 699 Crore in FY2017 to Rs 979 Crore in FY2021.

Positive Points

Company has zero promoter pledge.

FII/FPIs are increasing their shareholding in the previous quarters.

Negative Factors

Major negative factor is that the margins have fallen in FY2021 compared to all its previous years FY2020, FY2019 and FY2018.

Company expenditure has increased significantly in FY2021 (which we could see drop in margins).

Mutual funds have reduced the stake in this company in the recent quarter.

Share Price Performance

This stock generated 70% returns in the last 1 year and 10% returns in the last 3 months.

On the technical charts, the stock looks NEUTRAL.

You may like: 5 FMCG Multibagger Stocks in 2021

5) Reduced stake – Tata Motors Limited

Jhunjhunwala has reduced 0.2% stake from this Automobile company from 1.3% to 1.1% in Q1 compared to previous quarter.

Financial Performance
Company consolidated revenues reduced from Rs 269,692 Crores in FY2017 to Rs 249,794 Crores in FY2021.

It generated profit of Rs 6,063 Crores in FY2017 Vs Loss of Rs 13,016 Crores in FY2021.

Positive Points

Improving cash flow in the last couple of years.

FII / FPIs increasing increasing their shareholding.

Negative Factors

Company revenues are on declining mode in the last 3 years.

Company incurring losses in the last 3 years.

High interest payments.

Downgrade of credit ratings of the company.

Company debts are increasing.

Share Price Performance

This stock generated 187% returns in the last 1 year and 1% returns in the last 3 months.

On the technical charts, the stock looks VERY BEARISH

6) Reduced stake – Aptech Company

Jhunjhunwala has reduced the stake in his second favorite company from 23.8% to 23.7% in Q1 compared to previous quarter.

Financial Performance

Aptech consolidated revenues fallen from Rs 212 Crores in FY2017 to Rs 88 Crores in FY2021.

Its margins have reduced from Rs 19 Crore in FY2017 to Rs 17 Crore in FY2021.

Positive Points

Company has zero promoter pledge.

Company has zero debt.

FII/FPIs are increasing their shareholding in the previous quarters.

Negative Factors

Both revenues and margins are falling in the last 3 to 5 years.

Promoter is reducing the stake in the company.

Book value is deteriorating in the last couple of years.

Share Price Performance

This stock gave 120% returns in the last 1 year and 20% returns in the last 3 months. Despite such negative financial performance, on the technical charts, the stock looks VERY BULLISH.

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Suresh KP

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