A revisit to Rakesh Jhunjhunwala's top 10 investing mantras in 2024
Mumbai, Aug 07 Ace investor Rakesh Jhunjhunwala bought a 2.17 per cent stake in Indiabulls Housing Finance, a 0.42 per cent stake in Edelweiss Financial Services, and a 0.38 per cent stake in Federal Bank in Q1FY22. Federal Bank recently announced its Q1FY22 results and recorded its highest-ever operating profit of Rs 1,135 crore, and Jhunjhunwala seems bullish on this Kerala headquartered bank, says a source familiar with the developments.
The 'Big Bull' also bought a 1.39 per cent stake in the steelmaker Steel Authority of India (SAIL) during Q1FY22. The company cut its net debt by Rs 16,200 crore in FY21 and the expectation is that SAIL will further reduce it by another Rs 6,800 crore by FY23E. Also, the sales volumes increased by 5 per cent in FY21.
Dolly Khanna buys stakes in yarn and fertilizer companies. Dolly Khanna bought stakes in many companies in Q1FY22, including three yarn spinning companies - Deepak Spinners (2.07 per cent stake), Nitin Spinners (1.24 per cent stake), and RSWM (1.05 per cent stake).
This can be because the economy is opening up and demand for textile and hence yarn is expected to rise in the market. The stocks of Deepak Spinners, Nitin Spinners, and RSWM rose by 84.7 per cent, 67.7 per cent, and 49 per cent, respectively, so far in July 2021.
Khanna also bought stakes in two fertilizer companies - Rama Phosphates (1.77 per cent stake) and Aries Agro (1.49 per cent stake).
This comes ahead of the Kharif sowing season when the demand for fertilizers from the agriculture industry is expected to rise. The stocks of Rama Phosphates and Aries Agro are up 59.3 per cent and 29 per cent, respectively, so far in July 2021.
Sunil Singhania's Abakkus Fund diversifies its portfolio.
Sunil Singhania's Abakkus Fund bought a 2.98 per cent stake in DCM Shriram Industries in Q1FY22. The company operates in sectors like sugar, alcohol, organic and inorganic chemicals, drug intermediates, shipping containers, processed cotton yarn, etc. The company is likely to benefit as the economy slowly opens up, and as a result, the demand for its products grows.
Singhania added two technology stocks to the Abakkus portfolio as he bought a 0.6 per cent stake in Xchanging Solutions and a 0.08 per cent stake in Technocraft Industries in Q1FY22. The stock of Xchanging
Solutions and Technocraft Industries rose 43.8 per cent and 23 per cent, respectively, so far in July 2021. He also bought a 0.5% stake in Rupa & Company, a knitwear brand, and a 0.24 per cent stake in Siyaram Silk Mills, a blended fabric and garment manufacturer. The demand for textile-related products is expected to grow in the upcoming months as people head out from their homes.
Ashish Kacholia buys stakes in welding, pharma, and technology stocks.
Kacholia bought a 1.13% stake in Ador Welding in Q1FY22, a welding consumables and equipment manufacturing company. The company aims to reduce legacy costs and improve profitability in FY22-23. Its stock has made a new 52-week high of Rs 880.2 per share this month.
The superstar bought a 0.37% stake in IOL Chemicals & Pharmaceuticals and a 0.25% stake in Beta Drugs in the quarter. IOL Chemicals and Pharma is a bulk drug, intermediates, and specialty chemical manufacturer Beta Drugs makes a wide variety of anti-cancer drugs in India.
Kacholia also bought a 0.55% stake in Garware Hi-Tech Film, the largest exporter of polyester films in India, which he also added via a bulk deal purchase on July 29. The demand for polyester films is expected to grow worldwide as the manufacturing of automobiles and construction of buildings start at full pace once economies globally recover.
Vijay Kedia adds large stakes in Elecon Engineering and Mahindra Holiday.
Vijay Kedia bought a 1.19% stake in Elecon Engineering Company in Q1FY22. This comes when the demand for industrial gear systems and mining equipment is expected to increase as the industries and mining operations run at full pace all over the world. He also bought a 1.02% stake in Mahindra Holidays & Resorts India at a time when people are craving to go on vacation.
However, experts have a word of caution for the retail investors. "It is always interesting to note what accomplished investors are buying or selling. However, many a time these infos come with a time lag. Blindly following them, therefore, makes no sense. The key to being successful using these kinds of info is to see the kind of companies and sectors in which investment is being made. This will help investors in getting guidance," Arun Kejriwal, founder of Kejriwal Research and Investment Services told Bizz Buzz.
