In this article, we have covered the stock portfolio updates of big investors in the October-December quarter of FY 2020-21. We have discussed 7 stocks bought by Rakesh Jhunjhunwala, Vijay Kedia, Radhakishan Damani.
Before starting this, we would like to give you this information that stocks are taken for purely educational purposes. We don’t give any buy/sell recommendations of any stocks.
While researching for the investment in the stock market you need to know where big investors have invested their money. But you have your own risk appetite and investing philosophy, which is different from big investors.
Before you make an investment decision, you should surely do research so that you can decide the right stock for you.
#1. Rakesh Jhunjhunwala portfolio: Updates during Oct- Dec 2020
1.1 Rakesh Jhunjhunwala Portfolio: Investment in Water Sector (VA Tech Wabag)
Let’s first talk about those stocks that were bought by Rakesh Jhunjhunwala in September 2020. We will discuss the first such stock where he made a huge investment.
The first stock where Rakesh Jhunjhunwala has entered at the end of September 2020 is VA Tech Wabag. This company is in the water treatment sector. He has bought 50 lakh shares of this company.
In terms of value, he has made Rs 107 crore buying in this company. An interesting part of this company is that he has bought an 8% stake of the total shareholding in his wife’s name.
This comes under the water treatment sector. Another company in this sector is Ion exchange, where he made an investment a long time ago. Once its share price was Rs.400, but now it trades for more than Rs.700.
From here, we know that Rakesh Jhunjhunwala has a focus on the water treatment sector. He has purchased a new VA Tech Wabag stock after buying a similar stock in the water treatment sector earlier.
The share price of this company is currently Rs.210. But the interesting thing is that when the covid situation was at the peak, its share price once touched Rs.77. Since then, the share price has risen by 158%.
Exactly one year back, the company’s share price was Rs.170. The second company of this sector- Ion exchange, has already given a multi-bagger return to its investors. But this company has not yet given a multi-bagger return to its investors in recent times.
1.2 Rakesh Jhunjhunwala Portfolio: Investment in Agro Tech Food Ltd.
Now let’s talk about the second stock where he has done buying in the last quarter. This is not a new company in his portfolio, but it was already in his portfolio. He has increased his stake in this company.
The name of this company is Agro Tech Food Ltd. This company produces edible oil and food products. If you have not heard about its brand, let me tell you that Sundrop is one of its products.
Rakesh Jhunjhunwala increased his stake in the last quarter. He has a total investment of Rs.150 cr with more than 19,50,000 shares bought.
The total shareholding of Rakesh Jhunjhunwala is more than 8% in this company. The current share price of this company is around Rs. 780. In the last year, it has given a 28% return to its investors.
But as compared to Covid’s time loss, this company is 100% up. It means that if you had invested your money, then it would have doubled by now. But one must make an investment always for the long term. This was a fact that I wanted to share.
1.3 Rakesh Jhunjhunwala Portfolio: Investment in Tata Motors
Now let’s talk about the third company, which is an addition to the portfolio of Rakesh Jhunjhunwala. The name of this company is Tata Motors. This company is under the Auto sector, which has not performed well in recent times. He has made an investment of almost Rs. 700 cr with the acquisition of more than 4 cr shares.
From here, you can understand that his investment amount is quite huge. This is the third company of the Tata group where he has made an investment. Before this, he had made investments in Indian hotels and Titan.
An interesting thing over here is that the current share price of Tata Motors is Rs.180. However, at the bottom of the covid situation, its share price once touched Rs.70.
But in recent times, there has been a simultaneous improvement in Tata’s market share after Auto sales improvement. Tata Motors claimed that it wishes to become a debt-free company in the future.
We will get to know this in the future. But in recent times, the release of new cars by Tata Motors has improved its market share. Its future performance will be seen in emerging times.
But if you have made an investment in Tata Motors or any Auto company, let me tell you that they release monthly sales data. Over there, you can see month on month performance of the company and track your investment.
Tata’s business in India is under both the commercial and passenger vehicle segment. Besides, its Jaguar and Range Rover business is widespread in China and Europe. If you want to analyze this company, you must understand its business and then make your investment decision.
1.4 Some More addition in Rakesh Jhunjhunwala Portfolio
I will now tell you some more stocks where Rakesh Jhunjhunwala has slightly increased his stake in these companies. The name of these stocks is Lupin, Jubilant FoodWorks, and Tv18 broadcast. Rakesh Jhunjhunwala has slightly increased his stake in these stocks.
He had made investments in these companies a long time ago. Hence I will not discuss this in detail. He has kept his stake intact besides slightly increasing it.
1.5 Rakesh Jhunjhunwala Portfolio: Divestment
Now let’s talk about the stocks where he has slightly decreased his stake. The first company is Escorts, where he has decreased his stake. Besides this, he has also decreased his stake slightly in the Federal bank.
This is a piece of information for you. If you follow their portfolio, then these are important things to know. Here I would again give you a disclaimer that if Rakesh Jhunjhunwala has made an investment in any stock, we don’t know the stock’s buying price.
This information is available to you after the quarter. It is possible that a lot of things might change in a quarter’s span. Hence you must assess your risk appetite and only then decide your investment.
#2. Vijay Kedia Portfolio: Changes during October-December 2020
Now, after Rakesh Jhunjhunwala, let’s talk about a famous value investor whose name is Vijay Kedia. We will discuss the stocks bought by Vijay Kedia in the last quarter.
2.1 Vijay Kedia Portfolio: Investment in Affordable Robotics & Automation Ltd
Let’s talk about the first company- Affordable Robotics & Automation Ltd, where he bought 10% ownership with Rs.6 cr investment in the last quarter.
As understood by the name, this company works towards automation. On the company’s website, you will find that big auto sector companies are clients of this company. In terms of size, this is a small-cap company whose market capitalization is Rs.54 cr.
The price-earning ratio of the company is merely 17. The current share price of the company is Rs.55. In the last few days, the company has been making the upper circuit. However, it has given a negative 50% to its investors in the last year.
Here you can understand that the company’s share price has severely fallen. But (as compared to) during the Covid low, the company’s share price was even below this in the Covid times.
From there, we have seen a great recovery in recent times. You should know your risk in the small-cap companies and only then assess your risk.
2.2 Vijay Kedia Portfolio: Investment in Tejas Networks
Now let’s talk about the second company, which was already in the investment portfolio of Vijay Kedia, but he has increased his stake in the recent quarter. The name of this company is Tejas Networks.
The business of Tejas Networks includes optical and communication products. In recent times this company has given a good performance.
After this, its share price is increasing. This company has given a 59% return to its investors in the last year. But during the covid time, it once touched Rs.30.
After this, the company’s share price started to increase, and it now trades at Rs.130. It means that this company has given a 300% return to its investors.
Vijay Kedia has Rs.51 cr investment along with a 4.5% ownership from the total ownership.
3.3 Vijay Kedia Portfolio: Investment in Ramco Systems
There is one more company where Vijay Kedia has increased his stake. Its name is Ramco Systems.
He has slightly increased his stake in the last quarter. After knowing the stock-buying by Vijay Kedia, you’d also want to know the stocks where he has trimmed his holdings.
The first company where he has increased his stake is Lykis Ltd. Next is Sudarshan chemical, where he has slightly decreased his long investment in the last quarter.
In Neuland laboratories also Vijay Kedia has slightly reduced his stake in the last quarter. So this was the information of the portfolio of Vijay Kedia.
#3. Radhakishan Damani Portfolio: Addition in October-December 2020
Now let’s talk about the portfolio of Radhakishan Damani. I will discuss the buying and selling activities of his portfolio. In his entire portfolio, there is hardly any variation. But there is a single company where he has increased his stake. Its name is Spencers Retail.
Radhakishan Damani has slightly increased his stake in the last quarter. The share price of Spencer’s Retail trades at currently above Rs.82. In the last year, this company has given a 30% return to its investors. This can be considered a remarkable number.
The investment of Radhakishan Damani in this company is around Rs.16.5 cr.
So this article we have discussed the buying and selling done by 3 big value investors like Rakesh Jhunjhunwala, Vijay Kedia, and Radhakishan Damani in their portfolio during the 2nd & 3rd quarter of 2020-21.