Rakesh Jhunjhunwala’s holdings as on 31st December’09

This is just a small brief of Big Bull’s holdings (bought/sold) during the last quarter.

Bought:

Lupin – 79,500 shares

Titan – 1,57,000 shares

Nagarjuna Constructions – 12,50,000 shares

Rallis India – 35,000 shares

McNally Bharat Engineering – 4,80,078 shares

Sold:

Punj Lloyd – 12,50,000 shares

Praj Industries – 12,50,000 shares

Karur Vysya Bank – 5,27,503 shares

HOEC – 5,50,500 shares

No change in holdings in Crisil, Pantaloon-DVR, Bilcare, Geojit BNP Paribas, Geometric and Zen Technologies.

Big Bull is selling stocks whose earnings disappoint or are likely to disappoint in the future. Punj Lloyd since its IPO has gone nowhere.

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9 responses to “Rakesh Jhunjhunwala’s holdings as on 31st December’09

  1. I don’t think he is exiting out of Punj and Praj. If he had to do so, then he would have done that when Punj lloyd was above rs 290 and Praj Ind was above Rs 110. In my opinion he has sold out few shares as trading strategy. He has just sold 0.67% holding in Praj Industries (i.e out of 15726624 he has sold only 12,50,000 shares) and he still holds 14476624 shares (7.85% of Praj) and even after selling 12,50,000 shares of Punj Lloyd, he still holds 37,90,000 shares. I am sure he had sold these shares around Rs 290 when it was technically very weak and he would add them around Rs 200 again. Shareholding pattern should be closely monitored in Mar 10. You can visit my blog http://www.rakesh-jhunjhunwala.blogspot.com and read more

  2. HOEC had seen a very large increase in holding over a period of June to September with an almost 300% rampup in his total holding!! Do you have any update on this stock Devesh as it seems to have really ballooned up from its 52-week low. Glad to note that RJ is still bullish on Lupin despite a steep runup in price 🙂

  3. I dont track HOEC but yes RJ bought the stock before it went up circuit to circuit! Rallis has also done pretty well. Punj has been a big disappointment for him as he is holding on it since its IPO.

    As I said in my post, Lupin is a multi-year growth story, returns should be 20-25% compounded for the next 3 years.

  4. Thanks for the reply Devesh. Yours and RJ’s bullishness convinces me to buy more of Lupin 🙂

  5. Have a look at this interview of Kamal Sharma in Outlook Profit

    http://www.outlookprofit.com/article.aspx?263333

    Targetting 25% EBITDA margins over the long term!

    Also this one,

    http://www.outlookprofit.com/article.aspx?263837

  6. Thanks a lot Devesh, they are really wonderful articles indeed. Focus on difficult to make products, clever acquisition strategy, and also tremendous growth in the Indian market which is fast converting into a lifestyle diseases market, is what has propelled Lupin. I hope the multi-year growth story turns out to be a multi-decade growth story something similar to Infosys or a Bharti or an ICICI.

  7. Download Teva’s presentation from their website if you want to get an idea on the long term view of generics industry. Teva is targetting $31bn revenues by 2015 from $14bn in 2009. Teva is the largest generic player in the world. Teva’s presentation gives a sense that Lupin should also do well over the long term.

  8. Thanks a lot for the presentation Devesh. It is indeed a valuable insight into the future of the generics industry. Having been an investor in pharma for a long time, I like what Kamal Sharma tells when he says that as a company Lupin is not keen on “chasing toplines.” Making difficult to replicate products and niche therapy segments and entering difficult to succeed markets like Japan where quality and entry barriers pervade, Lupin will ensure that its margins and hence shareholder value will be retained. Most of the Indian pharma companies made the mistake of chasing blockbuster drugs which everybody wanted to clone. Hope I am right on the stock as I have a significant portion of my wealth invested in it.

    Besides, I wanted to let you know that Business India has a list of companies this time which it is recommending for 2020, (talk about long-term view). One of them is Lupin and also there is a mention of Rallis.

  9. is rj interested in mrdia/cooking oil

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