Rakesh Jhunjhunwala Gets Richer by Rs 832 Crore From These Two Stocks in a Month. Do You Hold?

Rakesh Jhunjhunwala Portfolio: The net worth of Rakesh Jhunjhunwala increased by Rs 832 crore in the last one month. The reason for the rise in wealth is two stocks included in his portfolio, Star Health and Metro Brands, which witnessed continuous rally for the past few days. These two Rakesh Jhunjhunwala portfolio stocks have been listed recently at Indian bourses and they have shown upside movement after some consolidation post-listing.

In the last one month, Star Health’s share price surged from Rs 686.60 to Rs 741.10 apiece levels, logging a rise of Rs 54.50 per share in this period. Similarly, in the last one month, Metro Brands share shot up from Rs 531.95 to Rs 604 per share levels, ascending around Rs 72.05 per share in this small time frame.

Rakesh Jhunjhunwaala Shareholding Structure in Star Health and Allied Insurance Company and Metro Brands

As per the exchange communication by Rakesh Jhunjhunwala post-listing of Star Health shares, Big Bull and his wife Rekha Jhunjhunwala have shareholding in the company. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together hold 10,07,53,935 company shares, which is around 17.50 per cent of total issued paid-up capital of the company.

As per the shareholding pattern of Metro Brands for October to December 2021 quarter, Rakesh Jhunjhunwala has invested in this company through his wife Rekha Jhunjhunwala. Rekha Jhunjhunwala has invested in this stock via 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 holds 1,30,51,188 Metro Brands shares or 4.81 per cent stake. As trustee of Aryavir Jhunjhunwala Discretionary Trust and Aryaman Jhunjhunwala Discretionary Trust, she holds 1,30,51,206 shares or 4.81 per cent stake in both trusts respectively. Hence, Rekha Jhunjhunwala holds 3,91,53,600 Metro Brands shares, which is 14.43 per cent of total paid-up capital of the footwear company.

Should You Add These Two Stocks to Your Portfolio?

ICICI Direct has buy call on Star Health and Allied Insurance Company Ltd. with a target price of Rs 800. Star Health and Allied Insurance Company Ltd, incorporated in the year 2005, is a Small Cap company (having a market cap of Rs 37,581.60 crore) operating in Financial Services sector.

Star Health is expected to maintain its leadership in the retail health segment with sustainable long term opportunities. Premium growth at 23- 24 per cent CAGR & focus on underwriting profit is expected to keep RoE ahead of peers.

We initiate coverage on the stock with a BUY rating, the brokerage said.

Metro Brands received a ‘buy’ call from Axis Securities, as the brokerage firm initiated coverage and said that strong earnings growth, robust cash generation will support premium valuation. Domestic firm has given a target price of Rs 625 apiece, a 52 times March 2024 EPS, a 10 per cent premium to its target multiple for Bata India.

Jhunjhunwala’s Net Worth Swells

As Star Health share price surged Rs 54.50 apiece and Rakesh Jhunjhunwala holds 10,07,53,935 Star Health shares, net rise in Rakesh Jhunjhunwala’s net worth after rise in this Rakesh Jhunjhunwala portfolio stock in last one month is around Rs 550 crore ( Rs 54.50 x 10,07,53,935).

Similarly, Rekha Jhunjhunwala holds 3,91,53,600 Metro Brands shares and this Rakesh Jhunjhunwala stock ascended Rs 72.05 per share in last one month, net rise in Rakesh Jhunjhunwala wealth due to rise in this portfolio stock in last one month is around Rs 282 crore ( Rs 72.05 x 3,91,53,600).

So, net rise in Rakesh Jhunjhunwala’s wealth in last one month after rise in these two newly listed portfolio stocks is Rs 832 crore ( Rs 550 crore + Rs 282 crore).

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