Jhunjhunwala cuts stake in Federal Bank, 3 others in Q3; laps up Titan

NEW DELHI: Ace investor Rakesh Jhunjhunwala trimmed holdings in at least four of his portfolio stocks, December shareholding data available for a dozen of his portfolio stocks showed. The Big Bull held over 1 per cent stakes in over 30 stocks as of September 30, 2019.

His shareholding in Firstsource Solutions fell by 0.32 per cent to 19,300,000 shares, or 2.78 per cent stake, at the end of December quarter from 21,470,000 shares, or 3.10 per cent holding, as of September 30.

In Federal Bank, he reduced holding by 21 basis points to 56,821,069 shares, or 2.90 per cent from 60,721,060 shares or 3.11 per cent, at the end of the previous quarter.


RJ, as the ace investor is fondly referred to on Dalal Street, cut his stake in Orient Cement by 0.05 per cent to 2,400,000 shares, or 1.17 per cent stake, from 2,500,000 shares or 1.22 per cent at the end of the preceding quarter.

He also cut stake in Edelweiss Financial Services by 0.03 per cent to 9,690,000 shares, or 1.04 per cent stake, from 10,000,000 shares, or 1.07 per cent. However, his holdings in MCX, Man Infraconstruction, Crisil, NCC, Aptech and Geojit Financial Services remained unchanged.


Meanwhile, the ace investor increased his stake in Titan to 6.69 per cent by the end of December from 6.51 per cent at the end of September. Jhunjhunwala and his wife bought about 16 lakh shares during the quarter ended December, 2019.

The ace investor, who will turn 60 soon, said he was not bothered by the change of guard at Titan. The successor (CK Venkataraman) to former MD Bhaskar Bhat at Titan is very competent, he told ETNOW in an interview.

Among sectoral bets, the ace investor said he was bullish on the pharma sector. The auto sector has been going through structural issues, and the theme around electric vehicles is largely overplayed, he said.

“Cement stocks, too, are overvalued. To identify market’s darling, you need to see earnings from cement and steel companies,” Jhunjhunwala said.

On possible rerating of PSU stocks, he said it would depend on a clear and transparent divestment policy. He remains bullish on banks – be it retail or corporate – as he expects consumer credit to boom and the NPA cycle to peak out.

The Big Bull said the government should extend the duration of long-term capital gains tax to two years in the Union Budget, but tax on dividends is undesirable and unjustified.

Jhunjhunwala, who expects Budget relief for the real estate sector, said the government must make investing in real estate tax free. “The government needs to send out a message to the business community that ‘we are on your side’,” he said.