Ace investor Rakesh Jhunjhunwala's portfolio has fallen around 22 percent in the June quarter so far. As per data by Trendlyne, Jhunjhunwala and his associates' net worth has declined from ₹33,754 crore in the quarter ending March 2022 to currently at ₹26,385 amid weak market sentiment on the back of rising inflation, aggressive rate hikes, and overall global market sell-off.
Jhunjhunwala's largest holding Titan, where he owns a 5.1 percent stake worth ₹8,775 crore has lost 25 percent in the June quarter so far. It has fallen over 30 percent from its 52-week high of ₹2,767, hit on March 21, 2022.
The ace investor's second-largest holding, Star Health and Allied Insurance Company, where he holds a 17.5 percent stake worth ₹6,229 crore has also shed around 15 percent in this time. The stock has tanked around 35 percent from its 52-week high of ₹940, hit in December 2021. However, now after this steep decline, brokerages expect the stock to gather pace and recover steadily.
Domestic brokerage house Motilal Oswal recently initiated coverage on the stock with a 'buy' call and a target price of ₹750 per share. While the target price is still below the company's IPO price, it indicates over a 20 percent upside in the stock. Meanwhile, ICICI Securities has also maintains its bullish stance on the Jhunjhunwala-backed health insurance stock and has given it a target price of ₹806 per share, indicating a 26 percent upside.
Metro Brands is the third-largest holding of Jhunjhunwala. He owns a 14.4 percent stake in the firm for about ₹2,101 crore. The scrip has also lost over 14 percent in the June quarter so far and is down 20 percent from its 52-week high of ₹673, hit in January 2022.
Recently, ICICI Securities initiated overage on the stock with a 'buy' call and a target at ₹588 per share. As per ICICI, Metro Brands, one of the largest Indian footwear specialty retailers present in India, has the right mix of brands providing a growth runway.
"Its focus on financial discipline and balance sheet strength provides confidence in the execution. It has an optimized mix of in-house brands and third-party brands to drive customer footfalls and improve sales density and gross margins. Besides, a platform of choice for international brands aids confidence in new avenues. Key risks are (1) delay in-store addition and (2) likely increased competition from regional players trying to premiumise," said the brokerage.
Meanwhile, Jhunjhunwala's other investments have also performed poorly during the quarter. Tata Motors, where he owns a 1.2 percent stake for ₹1,500 crore has lost 12 percent whereas CRISIL (5.5 percent stake for ₹1,197 crore) has lost 10 percent in this time.
Among his other holdings of over ₹500 crore, Fortis Healthcare is down 24 percent, Canara Bank shed 23 percent, Indian Hotels fell 13 percent and Federal Bank lost 12 percent in the June quarter so far.