Rakesh Jhunjhunwala’s Q3 trades: Right here’s what large bull purchased and bought within the final three months

In the third quarter of the fiscal year, ace investor Rakesh Jhunjhunwala was once again a busy man. While Sensex gained a whopping 28% and Nifty 50 zoomed 29%, the big bull of domestic stocks markets was seen increasing his stake in some firms, while booking profits somewhere, and adding fresh investments to his portfolio. The billionaire investor increased his holding in pharma firm Jubilant Life Sciences and booked profits in the information technology company Firstsource solutions, both are trading over 200% higher from their March 2020 lows.

Increases stake

At the end of the July-September quarter, Rakesh Jhunjhunwala held 91.45 lakh equity shares of Jubilant Life Sciences. His shareholding increased by 0.08% at the end of October-December to 92.70 lakh equity shares. During the time period, shares of the firm have mirrored the benchmark indices and zoomed 27% to now trade at Rs 927 per share.

Jubilant Life Sciences has recently received the NCLT approval for demerger of pharma and LSI businesses into two separate companies. “There could be some value unlocking as combined entity trades at a discount to sector peers; however, we do not expect material valuation rerating considering modest growth outlook and debt on the books,” said brokerage firm ICICI Securities while pinning an ‘Add’ rating on the stock with a target price of Rs 936 per share. The firm could also stand to benefit from the coronavirus vaccine. JM Financial said that Jubilant is currently manufacturing vaccines for 3 companies and has a capacity of around 500,000 vials per day. The brokerage has a ‘Buy’ rating on the stock, adding that vaccine manufacturing yet to be factored into the stocks.

Booked profits

With the run up in share price, the Big Bull was also seen booking profits on Dalal Street. In the previous quarter, Rakesh Jhunjhunwala trimmed his stake in Firstsource Solutions by 1.59%. At the end of September 2020, Jhunjhunwala held 2 crore equity shares of the firm, this was down to 90 lakh at the end of December 2020. Brokerage firm, Antique Stock Broking initiated the coverage of the stock in November with a ‘Buy’ call and a target price of Rs 100. The brokerage firm values the stock on a forward PE multiple of 13x on FY23 EPS of Rs 7.7.

Fresh entry

Once again, Rakesh Jhunjhunwala has added a Tata Group stock to his portfolio. Adding to the long list which includes the stocks such as Titan Company and Tata Motors. This time Big Bull, along with his wife, added Tata Communications to his portfolio, buying 32 lakh shares of the firm. The stock has gained 22% since the beginning of October. In the previous quarter, Tata Communications reported an EBITDA jump of 11% on-quarter basis, led by margin improvement. Revenue, however, was flat but in line with street estimates.