One year of lockdown: How Rakesh Jhunjhunwala made Rs 7,200 crore with these stocks

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Ace stock picker Rakesh Jhunjhunwala has made a whopping Rs 7,261 crore amid the ongoing bull run on Dalal Street since March 24, 2020, when prime minister Narendra Modi announced a nationwide lockdown to curb Covid-19.

At least 20 of his favourite midcap and smallcap stocks, which climbed over 100% during the past one year, took his net worth to Rs 16,430 crore in March 2021 from Rs 9,168.71 in March 2020. With a rally of nearly 392%, PVC pipes firm Prakash Pipes emerged as the top gainer in his portfolio. Shares of the company have jumped to Rs 119.55 on March 19, 2021 from Rs 24.30 on March 24, 2020.

NCC (up 339%), DB Realty (up 378%), Firstsource Solutions (up 328%), Bilcare (up 272%), Anant Raj (up 267%), Autoline Industries (up 243%) and Delta Corp (up 202%) stood among other top gainers in his portfolio.

Brokerage firm Emkay Global Financial Services is positive on Firstsource Solutions (FSOL) with a price target of Rs 125. “We expect FSOL to deliver around 19% earnings growth over FY20-23E. We maintain Buy at 15x FY23E earnings, considering a sustainable improvement in the revenue growth trajectory with stable margins and strong cash generation,” Emkay said.

The benchmark BSE Sensex has soared over 85% during the past one year as sustained inflows by foreign institutional investors and liquidity measures taken by central banks and governments aided market sentiment.

Data further highlighted that big bull has made humongous wealth in his latest pick Tata Motors. He held over 1% stake in the company at the end of Q2FY21. Shares of the auto major have gained 131% to Rs 308.95 from Rs 133.30 on September 30 last year.

Analysts are further bullish on Tata Motors despite the recent run-up. Global brokerage firm HSBC has set a target price of Rs 380 for the auto major. “Net automotive debt reduction in the past 9 months in business outside JLR and the domestic business. Improved outlook on free cash generation in domestic business has led to a reduction in our net automotive debt estimate for FY23 to Rs 24,400 crore (from Rs 34,000 crore),” HSBC said.

VA Tech Wabag, TV18 Broadcast and The Mandhana Retail Ventures also advanced between 130%-155% since March lows, while his top holding watch-to-jewellery major Titan has gained 80% during the same period.

Among the rest of the stocks, Prozone Intu Properties, Prakash Industries, Orient Cement and MCX stood among other major players which gained between 85%-108% since lockdown.