Good times: Titan adds shine to Jhunjhunwala’s portfolio
Investor Rakesh Jhunjhunwala’s outsized bet on Titan, a watch and jewellery maker, has helped the value of his disclosed portfolio gain 3.6 per cent in the quarter ended June.
This is nearly twice the 1.87 per cent gain in the Sensex during the same period.
Titan added ~1,245.3 crore, aided by a marginal increase in stake. Without Titan, the value of his disclosed portfolio is down ~757.1 crore.
The numbers are based on a Business Standard analysis, which identified 13 names through which he holds stake.
This includes his name, his
wife’s name, and various combinations of his family members’ names.
His disclosed portfolio’s rise in value is lower than in the last couple of quarters. The March quarter showed an 8.9 per cent gain. It was up 15.2 per cent in the December quarter last year. Best performer in terms of value added, Titan, at ~8,355 crore, accounted for 59.6 per cent of his disclosed portfolio. This is more than 10 times the next biggest holding, Federal Bank, at ~619 crore.
Titan was up 17.3 per cent in the June quarter. While analysts are positive on Titan, it has been seeing some headwinds.
Volatility in gold prices led to a 6 per cent decline in earnings estimates for the current year and the next one, noted a Motilal Oswal Securities Results Update note on August 6, authored by analysts led by Gautam Duggad, head of research.
“However, the longer-term investment case remains strong as Titan is well placed to grow its share in the largely unorganised (jewellery) market in India from the current level of 8 per cent,” it said.
The stock has declined over 20 per cent since the end of June. Sectorally, the consumer space is Jhunjhunwala’s biggest bet. It now accounts for 65.5 per cent of his portfolio. Other bets in the sector include VIP Industries, Delta Corp, and Agro Tech Foods. Jhunjhunwala’s allocation to financials is down from 15.1 per cent to 13.6 per cent.
His stake in troubled lender DHFL has declined from 3.19 per cent to 2.46 per cent. The firm has been struggling to meet debt repayments. The firm’s value halved to ~2,263 crore over the June quarter, and has dropped further since.
Its market cap was ~1,550.3 crore on Wednesday. Of the 32 entities in which he holds stake, 26 are small-caps. Mid-caps account for four. There are only large-caps — Titan and Lupin.
Firms are required to disclose names of shareholders whose stake exceeds 1 per cent. This means there may be others in which he holds stake. But the list provides a broad indication of the way in which his portfolio may have moved. An email requesting comment did not receive a reply.