Rakesh Jhunjhunwala Portfolio - June'07

Rakesh Jhunjhunwala Portfolio as on 30th June'07 filed with stock exchanges:

No	Company Name	% stake
1	Aptech	18.4
2	Viceroy Hotels	12.7
3	Titan Inds.	9.2
4	Geojit Fin. Ser.	8.6
5	Praj Inds.	8.2
6	CRISIL	7.6
7	Prime Focus	6.9
8	Agro Tech Foods	6.3
9	Nag. Constructn.	6.1
10	Karur Vysya Bank	4.8
11	Mid-Day Multimed	4.4
12	Geometric Soft.	4.0
13	Hind.Oil Explor.	3.9
14	Lupin	3.5
15	Vadilal Inds.	2.9
16	Provogue (India)	2.5
17	Garware-Wall Rop	2.4
18	Bhushan Steel	2.4
19	Punj Lloyd	1.9
20	Pantaloon Retail	1.6

Garware Wall Ropes is the latest entrant in the above portfolio, brought in qtr ended June'07

Note: The above portfolio is for companies that have filed their June'07 shareholdings till date.

Rakesh Jhunjhunwala Unlisted Equity Investments

First thanks to the readers of this blog who have contributed to this piece of information. Note this information is as per research by our blog readers, news articles and other sources.

Some of the key investments of Rakesh Jhunjhunwala in unlisted equity space are as follows:

• Innovassynth Technologies (45% subsidiary of listed company - Futura Polyester)
• Tops Security
• Klt Auto
• Concord Biotech
• A2z Enggineering
• Care hospitals
• Dharti dredging
• Manish Pharma,
• John Energy
• JBCN Mgmt Consulting
• Nandan Biomatrix
• Hungama Mobile
• Inventurus
• Leconcierge

Rakesh Jhunjhunwala Portfolio:March 2007 - Update 1

No.	Company name	% stake
1	Agro Tech Foods	4.3
2	Aptech	2.0
3	Bharat EarthMove	1.5
4	Bhushan Steel	2.4
5	Bilcare	11.6
6	CRISIL	7.6
7	Geojit Fin. Ser.	8.6
8	Geometric Soft.	3.5
9	Hind.Oil Explor.	3.9
10	Infomedia India	5.4
11	Lupin	3.5
12	Mid-Day Multimed	4.5
13	Nag. Constructn.	6.6
14	Pantaloon Retail	1.7
15	Praj Inds.	10.7
16	Prime Focus	6.9
17	Provogue (India)	2.5
18	Punj Lloyd	1.9
19	Ramco Systems	1.0
20	Titan Inds.	6.7
21	TTK Prestige	1.1
22	Vadilal Inds.	2.9
23	Viceroy Hotels	13.1

Note: While RJ's direct shareholding in Aptech is just 2%, if one includes Margenta Textiles, his partnership firm's holding, the total holding increases to around 26%.

Rakesh Jhunjhunwala Portfolio - March 2007

This is the first update of RJ's portfolio as on 31st March 2007:

No.	Company name	% stake
1	Agro Tech Foods	4.3
2	Bharat Earth Mov	1.5
3	Bhushan Steel	2.4
4	Bilcare	11.6
5	CRISIL	7.6
6	Geojit Fin. Ser.	8.6
7	Geometric Soft.	3.5
8	Lupin	3.5
9	Mid-Day Multi	4.5
10	Prime Focus	6.9
11	Provogue (India)	2.5
12	Punj Lloyd	1.9
13	Ramco Systems	1.0
14	Titan Inds.	6.7
15	Vadilal Inds.	2.9
16	Viceroy Hotels	13.1

I will post update as more companies file for their shareholding patterns.

Rakesh Jhunjhunwala buys 2.3% more of Infomedia

RJ has on 13^th April, 2007 brought 2.3% or 4.5 lakh shares of Infomedia India Ltd (according to bulk deal data provided by BSE). This brings his total stake in Infomedia to 7.7% (refer Investments of RJ as on 31^st Dec’06).

This is an interesting and a classic RJ buy. Let’s see why:

1. Infomedia has remained an underdog compared to most benchmarks, returning far less. Also the company has not been able to scale up in spite of a huge and profitable opportunity.

2. In spite of all the above, Infomedia has certain key strengths, which might have appealed to the investor:

a. Company is a leader in yellow pages business, which provides it with a huge moat around this highly profitable and low capial intensive business.

b. The yellow pages business is highly scalable (company can start such ventures in each and every town of India).

c. Such a business has a tremendous pricing power, once it is established (much higher than a dominant newspaper)

d. The company is also all set to exploit the opportunity presented by the growth in Special Interest Publications (SIP) in India

e. Finance is not a constraint for the company (it had cash of about Rs.50 crore or Rs.25 per share in balance sheet as per March 2006 balance sheet).

f. The majority stake (63%) of Infomedia is held by ICICI Ventures, which itself is primarily an investor

g. Excluding cash, it trades at a multiple of 27x


Thus Infomedia has all the making of a classic RJ buy viz., huge size of opportunity (yellow pages, SIP), scalability (launch of yellow pages in new towns) and a reasonable price (Infomedia is currently in investment mode, hence depressing its short-tem earnings, making P/E based valuation appear deceptively expensive).

Rakesh Jhunjhunwala Portfolio - December 2006

No.	Name	% stake
1	Aptech	18.4
2	Agro Tech Foods	4.3
3	Alphageo (India)	1.6
4	Bharat EarthMove	1.5
5	Bhushan Steel	2.4
6	Bilcare	11.6
7	CRISIL	8.1
8	Geojit Fin. Ser.	13.1
9	Geometric Soft.	2.9
10	Hind.Oil Exploration	3.9
11	Infomedia India	5.4
12	Karur Vysya Bank	4.8
13	Lupin	3.6
14	Mid-Day Multimed	5.0
15	Nag. Constructn.	6.7
16	Panama Petrochem	1.2
17	Pantaloon Retail	1.7
18	Praj Inds.	10.4
19	Prime Focus	6.9
20	Punj Lloyd	1.9
21	Ramco Systems	1.0
22	Titan	6.7
23	Vadilal Inds.	2.9
24	Viceroy Hotels	12.1
25	Zenotech Lab.	3.1
Source: Bseindia.com

Update -Rakesh Jhunjhunwala Portfolio - September 2006

As promised earlier, I am updating the list of portfolio stocks held by RJ as at end of September 2006. (you can access the previous post containing the portfolio here)

Lupin (4.09% stake, value of stake = Rs.164 crore)
Provogue (2.96% stake, value of stake = Rs.19 crore)
Alphageo (1.56% stake, value of stake = Rs.1 crore)

Total Portfolio value = Rs.1873 crore (up 16% over June 2006 quarter)


Note: The ace investor has added the following two new stocks in his portfolio in September 2006 quarter:
.Alphageo – for research click here.
.Panama Petrochem – for research click here

Rakesh Jhunjhunwala Portfolio - September 2006

The above portfolio of RJ is as declared to stock exchanges as on Oct 31, 2006. I shall update the same as and when more information is filed with the exchanges.

Note: Panama Petrochem Ltd is the new stock addition to the master investor’s portfolio in September 2006 quarter. I shall shortly post more research on Panama Petrochem on this blog.

Rakesh Jhunjhunwala Portfolio - June'2006

The above portfolio of RJ is as declared to stock exchanges as at June 30, 2006

Rakesh Jhunjhunwala - A Profile

Mr Rakesh Jhunjhunwala is a well known and astute Indian investor and trader. He is both a Value investor as well as a trader. Those hard core value investing fans might be wondering how can a single individual be both an investor as well as a trader (since both require completely opposite mental make-up)! Mr. Jhunjhunwala is known for his knack for picking undervalued stocks and sitting on them patiently for years to yield supernormal returns. His most famous quote is "I have made most money not by being right but by sitting tight".

Summary of Investment Philosophy:

According to Mr.Jhunjhunwala, key aspects to consider in an equity investment are:
. Size of the external opportunity
. Sustainability of competitive ability
. Scalability and operating leverage
. Management quality and capital efficiency
. Price and value divergence
Out of the above 5 factors, the last one, i.e., price what you pay is the most important, and if this condition is not satisfied, Mr. Jhunjhunwala will never invest in a stock.He also places great emphasis on superior business models rather than sectors for his investment decisions.