D-Street sell-off put Rs 900 crore dent to Big Bull Jhunjhunwala's top 10 holdings

Are you brooding over diminishing value of your investment portfolio? Don't worry! Even the big bull of Dalal Street has seen his portfolio shrinking post Budget 2018. 

A six-session long streak, beginning January 30, eroded ace investor Rakesh Jhunjhunwala's portfolio value by Rs 1000 crore to about Rs 7,500 crore. Among all, at least 10 of his portfolio stocks, where he holds over 1 per cent stake, cost him over Rs 900 crore. 

Data suggests some of Jhunjhunwala's portfolio stocks have fallen up to 24 per cent since January 29. These include Aptech (down 24 per cent), Anant Raj (down 16 per cent), DHFL (down 15 per cent), Titan (down 13 per cent), Lupin (down 12 per cent) and Prakash Industries (down 11 per cent). 

Karuru Vyasa, Federal Bank, and Mandhana Retail Ventures also slipped in the range of 1 per cent to 10 per cent during the same period.

By comparison, the S&P BSE Sensex dipped over 6 per cent or 2,248 points since January 29, the day the index hit its all-time high of 36443.98.

A combination of factors, from the imposition of from imposition of LTCG, widening fiscal deficit to a broader global rout, have caused the recent correction in the market. While buying on dips could be a good strategy, experts believe one should stay cautious as valuations are still not quite in ‘buy’ territory.

“Even assuming no risks to the quantum of earnings growth over FY2019-20E, the quality of earnings growth is quite poor, with a large portion of incremental profits of the Nifty-50 Index and KIE Universe Coverage coming from sectors such as PSU banks, metals & mining, oil & gas and utilities, which should logically trade at lower multiples (10-12 times given the low RoEs of the businesses and/or high profitability in the case of commodities),” analysts at Kotak Institutional Equities noted.

“Only a handful of stocks offer large upside to our FY2020E-based fair valuations,” they said.

Meanwhile, Gaurang Shah of Geojit Financial Services advised to stay invested in largecap stocks, and avoid the mid and smallcap stocks, which are trading at exorbitant valuations.