After Rakesh Jhunjhunwala’s passing, net worth dropped for two consecutive quarters under Rare team
The management team at Rare Enterprises made changes to the portfolio by adding new stocks and reducing stakes in others.
Hyderabad: Big Bull Rakesh Jhunjhunwala‘s net worth rose sequentially for each quarter from Q4FY20 to Q3FY22, increasing approximately 4X during that period. But after his passing, the net worth dropped for two consecutive quarters from Rs 34,804 crore in Q3FY22, to Rs 25,397.5 crore in Q1FY23, the media reported.
The portfolio has since then shown some recovery as Indian markets rose. Jhunjhunwala’s portfolio net worth stood at Rs 31,988.1 crore in Q4FY23. The fall in net worth was driven by declines in holding values, not stakes sales, Trendlyne reported.
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The provisional net worth for Q1FY24 stands at Rs 38,885.3 crore, up 21.6 per cent since the previous quarter, but shareholding filings for the quarter are still pending, Trendlyne reported. Despite a few additions to the portfolio, including a small-cap and a mid-cap company, Rare Enterprises has largely maintained the sector preferences established by Rakesh Jhunjhunwala.
However, there are signs that Rare Enterprises is more risk-averse compared to the renowned risk-taker and finder of diamonds in the rough, Rakesh Jhunjhunwala. Jhunjhunwala owned the stock trading firm Rare Enterprises. Since his passing, his portfolio has been managed by the Rare Enterprises team, headed by Utpal Sheth and Amit Goela, Trendlyne reported.
The management team at Rare Enterprises made changes to the portfolio by adding new stocks and reducing stakes in others. In Q3FY23, Rare purchased a 0.9 per cent stake in Rallis India and Federal Bank, taking the total stakes up to 10.3 per cent and 3.5 per cent, respectively.
It also bought 0.8 per cent and 0.6 per cent stakes in Geojit Financial Services and Canara Bank during the same quarter. It also increased its stakes in Tata Motors and NCC, Trendlyne reported.
Major changes in terms of additions by Rare came in Q4FY23. The firm added Raghav Productivity Enhancers Sun Pharma Advanced Research to the portfolio. It bought 5.1% and 1.9 per cent stake in them respectively.
Rare Enterprises’ newly added stock rises by 12.2 per cent since the addition. D B Realty, Man Infra, and Indian Hotels were the top three performing companies in Q1FY23, with one-year price changes of 121.1 per cent, 98.8 per cent and 59.7 per cent, respectively, Trendlyne reported.
Currently, the best-performing stocks in the portfolio are Karur Vysya Bank, Aptech and NCC, all showing a one-year price change of above 100 per cent. Raghav Productivity Enhancers, which was added by Rare, increased by 12.2 per cent since its addition in Q4FY23.
