Rakesh Jhunjhunwala, one of the most well-known investment legends in India, was also known to speak his mind on many matters regarding the economy, as well as other issues faced by investors at large. After his demise in August 2022, his portfolio was transferred to his wife, and a team of long-term associates is managing the portfolio. In the declarations for Q3FY23, the team is seen to be following his investment principles, and the Rakesh Jhunjhunwala portfolio remains one of the largest individual portfolios in the Indian market and is keenly tracked by many investors.
Notable changes in Q3FY23 include an increase in holding percentage for two banks, one agrochemical company, and a construction company during the last quarter.
Federal Bank – holding increased from 2.63% to 3.48%
Federal Bank Limited is one of the major Indian commercial banks in the private sector, headquartered in Aluva, Kerala. The bank operates in four segments: treasury operations, wholesale banking, retail banking, and other banking operations. The Q3FY23 results have been stellar for the bank, with a YoY revenue growth of 27.5%, the highest in the last ten quarters. Additionally, the bank reported its highest-ever operating profit at 1274.21Cr, a growth of 39% YoY, and its highest-ever net profit at 803.61Cr, up 54% YoY.
Rallis India – holding increased from 9.36% to 10.30%
Rallis is a Tata Group company and an agrochemicals company with a presence across the agricultural input value chain. It markets products for each step of the crop cycle to facilitate an integrated crop management system and increase agricultural yield and farm income. The company is reducing its dependence on China for meeting raw material requirements. It currently procures 100% of raw materials domestically for two products, and for two important intermediates, it procures 20% domestically, with a target of reaching 80% by year-end for other intermediates. This move is expected to be a good booster for the stock in the long term.
Tata Motors DVR – holding increased from 1.40% to 1.97%
Tata Motors is India’s largest HCV (Heavy Commercial Vehicle) manufacturer and the second-largest manufacturer of PVs (Passenger Vehicles) in India. The company has also established leadership in the EV PV segment, with its Nexon EV being the highest-selling EV in India. The company posted a net profit in Q3FY23, the first time in the last eight quarters. This quarter also saw the company sign agreements with critical suppliers across high-risk chips, mitigating the risk that they faced for the last few quarters, with chip shortages affecting the entire auto industry.
NCC – holding increased from 12.64% to 13.09%
NCC is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges, and other infrastructure-related projects. The company has been specializing in metro projects and has contracts for the construction of many metro projects in the country. The last three quarters have seen a steady order flow for the company, and this trend is expected to continue in Q4. NCC is expected to close FY23 with at least a 30% YoY increase in revenues as well as net profits.
Aptech – holding increased from 23.66% to 26.72%
Aptech is an IT company primarily engaged in the business of education, training, and assessment solution services. Rakesh Jhunjhunwala was part of the promoter group of this company. Post-pandemic, the company has seen a spurt in demand for its services, reflected in the more than 100% YoY growth in revenues for the last three quarters.
ABOUT THE AUTHOR
Ketan Sonalkar (SEBI Rgn No INA000011255 )
Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.
Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice
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