Rakesh Jhunjhunwala made Rs 284 crores in six years by investing in the Escorts Group who are leading tractor manufacturers. In the year 2013, Jhunjhunwala bought 50 lakh shares of the company for the first time.
By December 2015, Jhunjhunwala had a total of 1.12 crore shares. He then sold 12 lakh shares and kept 1 crore shares of the company in the December 2017 quarter.
Today, Jhunjhunwala‘s total stock in the company is worth Rs 648 crore.
In September 2013, the stock was trading around Rs 80, hence the 50 lakh shares would have been worth around Rs 40 crore. At the current value of Rs 648, the 50 lakh shares bought in 2013 is now worth Rs 324 crore, giving him a profit of Rs 284 crore.
However, the economic slowdown affected the auto industry in 2019. The stock price of the Escorts group fell by 8.2 percent due to this. But for the second quarter (Q2), Escorts reported a marginal rise in its consolidated September quarter (Q2FY20) net profit at Rs 101.5 crore against Rs 101.2 crore in the same quarter last year.
Escorts has reported a 1.6 percent increase in tractor sales at 13,353 units in October.
Domestic tractor sales last month were at 13,034 units, compared to 12,867 in October 2018, a growth of 1.3 percent, it said. Exports stood at 319 units as compared to 273 in the same month last year, a growth of 16.8 percent, the company said.
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