Rakesh Jhunjhunwala: Hits and misses of an investor with the midas touch

At the time of his death, Jhunjhunwala was the 48th richest man in the country according to Forbes India's 100 richest people list.

Billionaire investor Rakesh Jhunjhunwala. (Photo | Twitter)

A Chartered Accountant by qualification, the king of bulls in the stock market started dabbling in stocks while still in college. An investor with the midas touch, Jhunjhunwala's early bets on Metro Brands Star health insurance paid off well.

His privately owned stock trading firm Rare Enterprises derives its name from the first two initials of his name and his wife Rekha's.

Jhunjhunwala earned his first big profit in 1986 when he bought 5000 shares of Tata Tea at Rs 43 and the stock rose to Rs 143 within three months. In three years, he earned Rs 20-25 lakhs.

His investments included Fortis Healthcare, Aurobindo Pharma, Ion Exchange, Lupin, Geojit Financial Services, VIP Industries, Rallis India, Jubilant Life Sciences and more.

Jhunjhunwala's latest venture Akasa Air made its maiden flight a week ago on August 7. He called it "not a low-cost airline" but a "frugal airline".

At the time of his death, he was the 48th richest man in the country according to Forbes India's 100 richest people list and was ranked at 440th position on the Forbes real-time world billionaires list.

Fortis Healthcare, a Rakesh Jhunjhunwala portfolio stock, has risen more than 8 per cent in the last month and is extending its gains as of August 10.

According to media reports, here are some of the famous bets made by the veteran investor:

HITS

• Titan Company: Jhunjhunwala owned shares worth Rs 11,086.9 crore with a stake of 5.10 per cent at the end of June quarter.
• Star Health and Allied Insurance Company: Combining his wife Rekha Jhunjhunwala's holdings, Jhunjhunwala's hold 17.5 per cent stake in the company.
• Metro Brands: The Bull of Dalal Street owned 14.40 per cent stake in the firm at the end of the June quarter.
• TATA Motors: Known as India's Warren Buffet, Jhunjhunwala owned 1.5 per cent stake or 36,250,000 shares in Tata Motors at the end of last quarter.
• Crisil Ltd: Jhunjhunwala held 5.50 per cent stake worth Rs 1,301.9 crore in the credit rating firm in the June quarter.

MISSES

• Dewan Housing Finance: Perhaps his biggest miscalculation. In 2013, Jhunjhunwala bought 25 lakh shares of the company. Following a financial crisis, The company faced liquidation a few years later.
• DB Realty: This is another stock where Jhunjhunwala’s bet was a miss. Earlier this year, bought 2 crore warrants of the company. His investment is down 32 per cent.

*Holding Value in crores