How Adani bull Rajiv Jain’s GQG reshuffled 13-stock portfolio in election season

In the election-heavy June quarter, NRI investor Rajiv Jain-led GQG Partners raised stakes in 3 Adani stocks - Adani Energy, Adani Enterprises and Adani Ports - and its biggest India bet ITC. The institutional investor, on the other hand, was seen paring stakes in IDFC First Bank and Patanjali Foods in Q1 of FY24.

Adani stocks

After having shot to limelight for investing Rs 15,446 crore in four Adani stocks in the peak of the Hindenburg crisis in March last year, GQG's India portfolio has now surged to nearly Rs 90,000 crore with 13 stocks in the bouquet, shows data pulled from ACE Equity.


During the quarter, the boutique investment firm was seen buying 3.81 lakh shares of Adani Energy, 2.46 lakh shares of Adani Enterprises and 11.14 lakh shares of Adani Ports. GQG booked profits in Adani Power and Ambuja Cements.

While GQG's largest bet is Adani stocks as a conglomerate, its single largest bet remains ITC, the shares of which recently crossed Rs 500 mark after Budget didn't see any hike on cigarette tax.


ITC fan

During the quarter, GQG bought 1.98 crore shares of ITC after which its stake in the company went up to 2.91%. Its stake in GMR Airports Infrastructure also went up from 5.13% to 5.33% quarter-on-quarter.

Stocks sold in Q1

On the other hand, GQG was seen paring stake from 11.48% to 3.19% in case of Baba Ramdev's Patanjali Foods by selling 3 crore shares in Q1.

GQG's ownership in IDFC First Bank also fell from 2.35% to 2.98% QoQ. The firm was also seen selling partial stake in real estate stock Macrotech. The FII may have exited Max Healthcare Institute during the quarter as GQG's name was missing in the list of investors with at least 1% stake.

Best performer

JSW Energy, in which GQG continues to hold 2.91% stake, is the best performer in GQG's portfolio in 2024 with a year-to-date return of about 74%. Other big gainers are Adani Ports, Adani Power and Macrotech.

Over a longer time frame, GQG has made massive returns from his contra bet on Adani stocks which recently erased all losses made in the aftermath of the Hindenburg crisis.

Jain's bet on Adani Green Energy, in which GQG owned 4.16% stake, got endorsement from Jefferies this week which initiated coverage on the stock with a target price of Rs 2,130.

"The journey to raise capacity 4.6x from 11 GW to 50 GW by 2030 is underway. Land requirements and financing plans are in place. Execution track record has been good, reiterated with the 925 MW set up in Covid lockdown period of 2021. Management focus is profitable growth and healthy IRRs while bidding," said Jefferies analyst Lavina Quadros.

(Data: Ritesh Presswala)

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