Rakesh Jhunjhunwala Portfolio: Rakesh Jhunjhunwala’s net worth has surged by Rs 832 crore in the past month. The reason for the increase in wealth is two stocks in his portfolio, Star Health and Metro Brands, which have seen continuous gains in recent days. These two Rakesh Jhunjhunwala portfolio stocks were recently listed on Indian stock exchanges and have shown upward movement following some post-list consolidation.
In the past month, Star Health’s share price rose from Rs 686.60 to Rs 741.10 apiece, rising from Rs 54.50 a share over the period. Similarly, Metro Brands’ stock shot up from Rs 531.95 to Rs 604 per share in the past month, rising around Rs 72.05 per share in this short span of time.
Rakesh Jhunjhunwaala Shareholder Structure in Star Health and Allied Insurance Company and Metro Brands
According to the exchange communication by Rakesh Jhunjhunwala after the listing of Star Health shares, Big Bull and his wife Rekha Jhunjhunwala own a stake in the company. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together own 10,07,53,935 shares of the company, which is about 17.50 percent of the total issued paid-up capital of the company.
According to Metro Brands’ stock pattern for the quarter of October to December 2021, Rakesh Jhunjhunwala has invested in this company through his wife Rekha Jhunjhunwala. Rekha Jhunjhunwala has invested in this share through three trusts: Nishtha Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust and Aryaman Jhunjhunwala Discretionary Trust. As a trustee of Nishtha Jhunjhunwala Discretionary Trust, Rekha Jhunjhunwala owns 1,30,51,188 Metro Brands shares or a 4.81 percent stake. As a trustee of Aryavir Jhunjhunwala Discretionary Trust and Aryaman Jhunjhunwala Discretionary Trust, she owns 1,30,51,206 shares or a 4.81 percent interest in both trusts, respectively. Therefore, Rekha Jhunjhunwala owns 3,91,53,600 Metro Brands shares, which is 14.43 percent of the total paid-up capital of the shoe company.
Should you add these two stocks to your portfolio?
ICICI Direct has made a purchase request on Star Health and Allied Insurance Company Ltd. with a target price of Rs 800. Founded in the year 2005, Star Health and Allied Insurance Company Ltd is a Small Cap company (with a market capitalization of Rs 37,581.60 crore) operating in the financial services sector.
Star Health is expected to maintain its leadership in the retail health segment with long-term sustainable opportunities. Premium growth of 23-24 percent CAGR and focus on underwriting profit are expected to keep RoE ahead of its competitors.
We start the cover on the share with a BUY rating, according to the brokerage.
Metro Brands received a “buy” call from Axis Securities as the brokerage firm began coverage and said strong earnings growth and robust cash generation will support premium valuation. The domestic company has given a target price of Rs 625 each, earnings per share of 52 times as of March 2024, a 10 percent premium over its target multiple for Bata India.
Jhunjhunwala’s net worth swells
As the price of the Star Health share rose to Rs 54.50 each and Rakesh Jhunjhunwala owns 10.07.53,935 Star Health shares, the net increase in the net worth of Rakesh Jhunjhunwala after the increase of this Rakesh Jhunjhunwala portfolio in the about Rs 550 crore (Rs 54.50 x 10.07.53,935) last month.
Similarly, Rekha Jhunjhunwala owns 3,91,53,600 Metro Brands shares and this share Rakesh Jhunjhunwala rose by Rs 72.05 per share in the past month which is the net increase in Rakesh Jhunjhunwala’s net worth due to the rise of these portfolio shares in the last month is about Rs 282 crore (Rs 72.05 x 3,91,53,600).
So the net increase in Rakesh Jhunjhunwala’s net worth in the past month following the rise of these two newly listed portfolio stocks is Rs 832 crore (Rs 550 crore + Rs 282 crore).
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