New Delhi. After the demise of stock market investment veteran Rakesh Jhunjhunwala, the stock portfolio of the Jhunjhunwala family is being run by his wife Rekha Jhunjhunwala. Jhunjhunwala family’s stocks have also not remained untouched by the sharp fall in the market. While Sensex and Nifty have fallen by 8-9 percent since the end of the September quarter, the Jhunjhunwala family’s portfolio has fallen by 13 percent. The Jhunjhunwala family’s portfolio stood at ₹40,082.90 crore on Tuesday evening, while at the end of the September quarter it stood at ₹55,095.90 crore.
Not even one of Jhunjhunwala’s top 5 stocks has given positive returns. The company has invested the most in Titan, Concord Biotech, Star Health and Allied Insurance, Tata Motors and Metro brands. Shares of all these companies have fallen by 6-24 percent.
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Titan Company
Jhunjhunwala holds 5.1% or ₹14,741 crore stake in Titan Company Limited. This stock has fallen 15.80% since September 30. The main reason for this decline is believed to be the company’s weak second quarter (Q2) results. Margins in Titan’s jewelery segment were lower than expected and the company cut margin guidance for FY25 by 100 basis points. Brokerages like Goldman Sachs and Jefferies believe the custom duty cut boosted jewelery growth but had a negative impact on reported margins.
Tata Motors
Shares of Tata Motors, in which the Jhunjhunwala family holds 1.3% stake, have fallen by 20% since September 30. The company’s British arm, Jaguar Land Rover (JLR), maintained EBIT margin guidance for FY25 at 8.5%, but reduced free cash flow (FCF) guidance to £1.3 billion from £1.8 billion. The reason for this is believed to be high capex (capital expenditure). InCred Equities said that despite better product mix, weak average selling prices (ASP), declining gross margins and rising marketing expenses are a matter of concern.
Star Health and Allied Insurance
Shares of Star Health have fallen by 24%. Its Q2 results saw an increase of 410 basis points in the claim ratio. This increase was due to longer monsoon, increase in cases of serious diseases, and increase in 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 maintains “Buy” rating with a target of ₹630.
Metro Brands Limited
Shares of Metro Brands fell 13%. The last six quarters were full of changes for the company. Gross margin was impacted due to FILA’s inventory liquidation in Q2FY25. However, the company has accelerated the pace of store addition and has set a target of opening 100 new stores in FY25. The company’s earnings per store appear to be stabilising, but Q4FY25 will be an important test for its performance. Analysts have suggested a target of ₹1,175.
Tags: business news, stock market
FIRST PUBLISHED: November 20, 2024, 16:20 IST
