Ten stocks from Big Bull Rakesh Jhunjhunwala’s portfolio climbed 10-40 percent in the post-Budget rally that helped Sensex reclaim the 50,000-mark and Nifty top the 15,000 mark. With this, the total value of the stocks he holds has topped Rs 16,700 crore, up 82 percent from the lows of March 2020 reported Economic Times.
Engineering and construction company NCC is at number one in this list, the stock has risen 41% since the budget day. The budget was introduced on 1 February. Jhunjhunwala holds a 12.84 percent stake in NCC as per December quarter data. According to Philip Capital, NCC shares rose due to announcements made in the budget for the infrastructure sector. According to CLSA, the order backlog of the company had fallen by 11 percent year-on-year in the second quarter of FY 2021 but the company received orders worth Rs 13,700 crore in the third quarter.
Karur Vysya Bank
Karur Vysya Bank‘s stock in Tamil Nadu has gained 24.5 percent since its budget day. Regarding this share of Jhunjhunwala, analysts say that special attention has been given to Tamil Nadu in the budget, which led to the rise in the bank’s shares. According to ICICI Securities, the credit growth of the state has been around single digits for the last 6 years. Growth can be back on track with the announced CAPEX and a bank like Karur will benefit from it.
Jhunjhunwala has a 4.75 percent stake in Escorts. The stock has climbed 4.75 percent from the budget. Analysts say the demand for tractors will remain in the coming days. According to IDBI Capital, the measures taken to boost agricultural activities in the budget will increase demand for tractors.
Federal Bank‘s stock has risen 15 percent from the budget. Jhunjhunwala holds 2.4 percent shares in this company as per December quarter data. The bank’s loan book is continuously increasing with retail. Axis Securities has placed it in the top shares in its February note.
Other 5 shares that rose
Ion Exchange (India), Firstsource Solutions, Prakash Pipes, Indiabulls Real Estate, and GMR Infra also hold shares in Jhunjhunwala’s portfolio. These stocks have gained 11 to 14 percent from the budget. Indiabulls shares have gained momentum with tax exemptions for one year to affordable housing projects. In the budget, GMR shares have got wings with emphasis on infrastructure.