Two Rakesh Jhunjhunwala linked midcaps hit new low, other favorite stocks on hotbed; are you invested in them? You just lost money

Dalal Street got a breather in today's trading session with both Sensex and Nifty 50 clawing themselves into the green. Sensex and Nifty 50 took a massive hit last week, something that can be attributed to RBI's policy where the governor Urjit Patel led MPC maintained a status quo. However, the panic reversed, and today investors had 'Buy' sentiment on exchanges, with Sensex trading at 34,500.48 above 123.49 points or 0.36%, while Nifty 50 at 10,364.70  higher by 48.25 points or 0.47% at around 12:57 hours. Shockingly, today was not a good day for Rakesh Jhunjhunwala, as investors were a 'Sell' call in two of its his favorite midcaps. If you have invested in renowned NBFCs like Edelweiss Financial Services and Dewan Housing Finance Limited, just like Jhunjhunwala, then you are losing hefty money today. These two stocks have in fact touched an all-time low on stock exchanges. 

To begin with, the S&P BSE MidCap was worst performer on the benchmark index, as it was trading at 13815.54 down by 188.7 points or 1.34%. That said, on this index, the DHFL and Edelweiss were top losers taking massive hit from investors. 

DHFL taking the lead on losers list on midcap indices, was trading at Rs 244.50 per piece below Rs 29.80 or 10.86%. However, in first half of trading session, the company has hit a 52-week low of Rs 241.40 per piece dropping by nearly 12% on BSE. 

Not much is known as to why investors are continuing to drive the ongoing bloodbath in DHFL share price, but the company has been facing an uphill struggle to restore faith. DHFL is among those NBFCs that have taken the worst of beatings on exchanges after the sector's liquidity position concerned investors, something that can be blamed on IL&FS crisis - the company defaulted in settling its bonds due and some other financial obligations. 

On October 03, DHFL revealed that they have received payment of interest of Rs 2.59 crore against its Non-Convertible Debentures principal amount of Rs 9 crore. 

Going ahead, Edelweiss share price has also been down due to lack of faith from investors in NBFC sector. The company today was trading at Rs 155.65 per piece down by Rs 20.25 or 11.51%. However, just like DHFL, Edelweiss has also touched a new low of Rs 155.10 per piece which resulted in overall of nearly 12% on Sensex. 

Last week, Edelweiss had announced that it maintained a  Liquidity Cushion of ~9-10% of balance sheet at all points of time. Current liquidity cushion stands at Rs 5,400 crores. Further, medium and long term sources of funds are upwards of 68% of total balance sheet. 

Edelweiss even said, “Adequate Liquidity Cushion currently positions us to meet all contractual liabilities over next 6 months even without roll-overs.” However, investors seem to not care for such optimistic position of Edelweiss. 

Coming to Jhunjhunwala, he owns about 2.76% in DHFL which comes to 8,665,264 equity shares worth Rs 331.45 crore. Interestingly, earlier the king of Dalal Street held about 3.19% in DHFL, but he decided to shorten that holding by 0.43% between April to June 2018 period. 

Meanwhile, in percentage terms Edelweiss is Jhunjhunwala's smallest investment. The Warren Buffett of India holds about 1.08% in Edelweiss which are worth Rs 192.5 crore. 

These two were not alone to see selling pressure, as some other stocks of Jhunjhunwala also tumbled today on Sensex. 

Aptech was down by 5.05% at Rs 136.25 per piece, Bilcare was at Rs 30 per piece below 5.36%, DB Realty at Rs 20 per piece down 3.85%, Escorts at Rs 561.35 per piece lower by 4.03%, Firstsource Solutions at Rs 54.55 per piece down 4.97%, Jaiprakash Associates at Rs 6.29 per piece lower by 3.97%, Man Infraconstruction at Rs 37.05 per piece down 1.33%, MCX at Rs 661.70 per piece down 1.54%, NCC at Rs 70.35 per piece down 1.54%, Orient Cement at Rs 88.55 per piece down 2.15%, Prakash Industries at Rs 106.60 per piece down 4.86%, Prozone Intu Properties at Rs 29.15 per piece down 2.51%, VIP Industries at Rs 399.30 per piece down 2.43% and lastly The Mandhana Retail at Rs 40 per piece lower by 1.84%. 

Jhunjhunwala's holding in the above mentioned are - Aptech (24.05%), Bilcare (8.48%), Mandhana Retail (12.74%), VIP Industries (3.69%), Prozone Intu (2.06%), Orient Cement (1.22%), NCC (9.50%), MCX (3.92%), Man Infra (1.21%), Jaiprakash (2.06%), Escorts (8.12%), Firstsource (2.90%), Delta (7.48%) andDB Realty (2.06%).