We all know about Rakesh Jhunjhunwala who is one of the famous Indian investors and is called as Indian Warret Buffet. He has been investing in Indian stock market from his college days. Some of us might be interested in cloning his investments as our investment strategy. He has been investing in several penny stocks or low priced stocks too. While the value of such investments could be small in his portfolio, one might think whether it makes sense to clone such penny or low priced stocks of < Rs 100 in our investment portfolio. In this article we would cover 10 Penny or low priced stocks which Rakesh Jhunjhunwala has been investing in 2022 and how is the performance of these stocks in the last 1 year and last 3 years.
Also Read: 5 Stocks that are doubling every 4 years
Rakesh Jhunjhunwala Portfolio 2022 – Penny or low Priced Stocks
This portfolio holding is as of February, 2022 based on the information available on stock exchanges. We have filtered bottom 10 stocks based on current market prices of these stocks (which are below Rs 100) invested by Rakesh Jhunjhunwala as well as his wife Rekha Jhunjhunwala.
Currently Rakesh Jhunjhunwala holds 5.02% only in these low priced or penny stocks in 2022.
There are 5 low priced stocks where the investment is over Rs 100 Crores i.e. NCC, SAIL, Karur Vysya Bank, TV18 Broadcast and Geojit Financial Services.
Balance 5 stocks investment amount is less than Rs 100 Crores.
In the last 3 years, Jhunjhunwala has consistently increasing their stake in NCC and Edelweiss Financial Services.
In the last 3 years, Rakesh’s has been reducing stake in Autoline Industries.
Rakesh Jhunjhunwala is holding 9 Penny or low priced stocks (out of 10) for over 3 years where the share prices have generated minus 53% returns to positive 255% returns.
Here are the list of low priced and penny stocks invested by Rakesh Jhunjhunwala in 2022 along with current market price, last 1 year returns and last 3 year returns. Data as on 15-Feb-22.
|Company Name||CMP Rs||1 Year||3 Year|
|Prozone Intu Properties||27.9||37.7%||4.5%|
|Karur Vysya Bank||52.4||-3%||-23.7%|
|Edelweiss Financial Services||62.9||-7.2%||-55.2%|
|Geojit Financial Services||74.7||33.3%||117.6%|
Rakesh Jhunjhunwala – Low Priced or Penny Stocks – Doubled in 3 years
Below stocks doubled in the last 3 years
#1 – Bilcare – 1 Lac invested is now 3.06 Lacs
#2 – Anant Raj – 1 Lac invested is now 2.4 Lacs
#3 – SAIL – 1 Lac invested is now 2.18 Lacs
#4 – Geojit Financial Services – 1 Lac invested is now 2.17 Lacs
#5 – TV18 Broadcast – 1 Lac invested is now 2.12 Lacs
Rakesh Jhunjhunwala – Penny or Low Priced Stocks – Doubled in 1 year
#1 – TV18 Broadcast – 1 Lac invested is now 2.3 Lacs
#2 – Autoline Industries – 1 Lac invested is now 2.03 Lacs
What are the lessons learnt from Rakesh Jhunjhunwala Penny or low priced stocks in 2022?
Investors would always be hungry for returns. Here are a few lessons which we could learn.
- Rakesh Jhunjhunwala portfolio contains penny or low priced stocks totaling to 5% of the overall portfolio. The majority of his portfolio is in large cap and midcap, some amount in smallcaps too. This is the biggest reason his portfolio is consistently showing growth.
- You should read our review in 2021 where Rakesh’s penny stocks or low priced portfolio have dropped by 78% in 4 years. Means Rs 100 worth of share price is valued only Rs 22 in 2021.
- Penny or low priced stocks have increased by 34% in the last 1 year and 26.78% in the last 3 years. Means majority of the portfolio increase came in the last 1 year which proves that one should hold stocks for medium to long term to get good gains.
- There are 3 stocks which have declined and generated negative returns in the last 1 to 3 years. Investors should be willing to bear such risks in mind if they are looking to invest in penny stocks or low priced stocks.
- It is always advisable to avoid penny stocks. One can invest in low priced stocks which have good fundamentals and technically looking good.
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