Rakesh Jhunjhunwala’s bloody July - September quarter; The ace investor loses hefty money, 98% portfolio tumbles

The July to September 2018 quarter was not only worst for Sensex and Nifty who saw its shining days crumbled so much, that they even earmarked below 34,000-mark and 10,200-level. In fact, it was also bloody quarter for Dalal Street king Rakesh Jhunjhunwala, whose over 98% portfolio recorded negative trend, making the loss hefty for him. Jhunjhunwala is seen as an idol when it comes to trading in equities, after all he has mastered the key of patience and working beyond the nature of market trend. But this time, he was heavily trapped in the bloodbath of markets. The result of decline in markets, was a result Jhunjhunwala had to make changes in his portfolio by removing money in six stocks, and investing in other 8 companies.

Here’s how Jhunjhunwala’s entire portfolio performed between July to September 2018 quarter, according to data provided by TrendLyne.com.

It was without any doubt Dewan Housing Finance Limited (DHFL) in whom Jhunjhunwala made hefty loss, as the company has tumbled by 61.89% in the quarter. But guess what! Jhunjhunwala took this as an opportunity and raised his holding in DHFL when the company was taking heat of investors. He has raised his stake in DHFL by 0.43% to 3.19% with shares worth Rs 225.1 crore.

Second worst performer was Jaiprakash Associates (JP), who has plunged by 56.23% during the quarter. Looks like Jhunjhunwala himself has lost faith in this company, as he removed money in heavy amount, taking down his holding by 0.93% in same quarter in JP. Now his holding stands at 1.13% with shares worth Rs 17.6 crore.

Another NBFC-company Geojit Financial was also worst performer, as it slipped by 54.05% in the quarter. This was followed by one more NBFC namely Edelweiss Financial Services which plummeted by 47.68% in the same quarter. In these two companies, Jhunjhunwala hold about 7.57% and 1.07% stake respectively.

Meanwhile, realty sector was another disappointing for Jhunjhunwala, as his DB Realty where he hold about 2.06% stake, tumbled by 41.45% in the quarter.

Apart from this, Jhunjhunwala’s investment declined in Aptech, The Mandhana Retail and Escorts as they dropped by 37.7%, 37.93% and 30.58% in July - September quarter. The investor hold about 24.05%, 12.74% and 8.16% stake in these three companies.

During the quarter other stocks of Jhunjhunwala that tumbled were - Rallis India (14.88%), Bilcare (19.46%), Autoline Industries (11.98%), Delta Corp (6.88%), Agro Tech Foods (19.3%), Crisil (18.86%), Ion Exchange (14.24%), Multi Commodity Exchange (19.48%), VIP Industries (9.22%), TV18 Broadcast (22.06%), Firstsource Solution (15.1%), Prozone Intu (24.9%), Federal Bank (5.38%), Orient Cement (29.24%), Man Infra (15.22%), Anant Raj (18.36%), NCC (17.97%), Prakash Industries (28.6%), Jubilant Life Science (11.82%) and Karur Vysya Bank (18.4%).

Among the companies mentioned above, Jhunjhunwala in the same quarter reduced holding in Rallis India by 0.26% to 9.41%, Delta Corp by 0.10% to 7.38%, Prakash Industries by 0.06% to 1.53% and NCC by 0.05% to 9.45%.

On the other hand, despite some stocks tumbling, Jhunjhunwala took it as an buying moment, and increased his holding in TV18 by 0.37% to 2.97%, Jubilant by 0.31% to 1.57%, Escorts by 0.04% to 8.16% and Federal Bank by 0.02% to 1.74%.

The quantum of loss was comparatively low in Jhunjhunwala’s most favorite stock Titan Company, as it tumbled by 8.41% in the quarter. Jhunjhunwala also purchased more stake in Titan, raising his holding by 0.06% to 7.12% with shares worth Rs 5,342.2 crore.

Jhunjhunwala also made two new investment in September 2018 quarter. He added money in Fortis Healthcare and SpiceJet having holdings of 2.41% and 1.25% with shares worth Rs 175.4 crore and Rs 54.5 crore respectively. Interestingly, in this quarter, Fortis and SpiceJet both have slipped by 4.08% and 25.37% respectively.

It was only Lupin who was the sole gainer for Jhunjhunwala during the quarter. The company gained by just 4.27% in September 2018. Despite rising, Jhunjhunwala was not optimistic in Lupin share price, as he removed money by reducing his portfolio by 0.16% to 1.79% with shares worth Rs 717.10 crore.

Considering above, it can surely be said, Jhunjhunwala saw hefty money loss during September quarter. With this, over 98% of Jhunjhunwala's portfolio tumbled. However, Jhunjhunwala is very much aware of the market volatility, as he rightly says, ‘some stocks will underperform and some will outperform.’ But the key is to not be panicked, instead make an investment planning.