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The Jhunjhunwala family portfolio fell 13% to Rs 40,082.90 crore, compared to Rs 55,095.90 crore last quarter. Sensex and Nifty has declined by 8-9%
None of Jhunjhunwala’s top five stock holdings have generated positive returns. (News18 Hindi)
After the death of veteran stock market investor Rakesh Jhunjhunwala, the Jhunjhunwala family’s stock portfolio is now managed by his wife, Rekha Jhunjhunwala. The recent market downturn has impacted the family’s holdings.
While the Sensex and Nifty have experienced declines of 8-9 per cent since the end of the September quarter, the Jhunjhunwala family portfolio has witnessed a more significant drop of 13 per cent.
As of Tuesday evening, the portfolio was valued at Rs 40,082.90 crores, down from Rs 55,095.90 crores at the end of the previous quarter.
None of Jhunjhunwala’s top five stock holdings have generated positive returns. The family’s most substantial investments lie in Titan, Concord Biotech, Star Health and Allied Insurance, Tata Motors, and Metro Brands. Shares of all these companies have experienced declines ranging from 6 to 24 per cent.
Titan
Jhunjhunwala has a 5.1% or ₹14,741 crore stake in Titan Company Limited. This stock has fallen by 15.80% since September 30. The main reason for this decline is believed to be the company’s weak second quarter (Q2) results. Titan’s jewellery segment margins were lower than expected and the company cut margin guidance by 100 basis points for FY25. Brokerages like Goldman Sachs and Jefferies believe that custom duty cuts boosted jewellery growth, but had a negative impact on reported margins.
Tata Motors
Shares of Tata Motors, in which the Jhunjhunwala family has a 1.3% stake, have fallen by 20% since 30 September. The company’s British arm, Jaguar Land Rover (JLR), maintained EBIT margin guidance for FY25 at 8.5% but lowered free cash flow (FCF) guidance to 1.3 billion pounds from 1.8 billion pounds. This is believed to be due to higher capex (capital expenditure). Incred Equities said that despite better product mix, weak average selling price (ASP), declining gross margins and rising marketing expenses are concerns.
Star Health and Allied Insurance
Star Health shares have fallen by 24%. Its Q2 results saw a 410 basis point increase in claim ratio. This increase was due to a long monsoon, increased cases of critical illnesses, and increased share in group business. Analysts believe that the company’s improvement in scale will reduce the expense ratio, but the impact on the loss ratio will depend on pricing and product mix. MOFSL has retained a “buy” rating with a target of Rs 630.
Metro Brands
Metro Brands shares fell 13%. The last six quarters have been quite eventful for the company. Gross margins were impacted due to FILA’s inventory liquidation in Q2FY25. However, the company has accelerated the pace of store additions and aims to open 100 new stores in FY25. The company’s revenue per store appears to be stabilising, but Q4FY25 will be a key test for its performance. Analysts have suggested a target of Rs 1,175.