Synopsis
Rakesh Jhunjhunwala’s recent portfolio restructuring saw many of his wealth creators losing weightage and new stocks being added to his portfolio.
ETMarkets.com
Rakesh Jhunjhunwala and his wife went light on three stocks while adding two more to their kitty.
Investing as a career is to let the company’s management constantly worry about running the business while you just let yourself sit back and sip wine, says veteran value investor Vijay Kedia. He seems to correctly point at investors doing just the opposite and inviting unhappiness by adding unnecessary parameters. Read about Kedia’s simple yet successful take on investing, Rakesh Jhunjhunwala’s portfolio restructuring, Samir Arora taking shots at popular beliefs from people like Warren Buffet, and more in this week’s ‘Long & Short of Markets’.
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NEW DELHI: As India’s focus has increasingly shifted to providing cleaner water and sustainable waste management, this company is looking to capitalise on the opportunity to build bigger fortunes.
VA Tech Wabag, which has expertise in water engineering with many projects in India and abroad under its belt, has enthused analysts, who believe the next one year could be very rewarding for its shareholders with a 75 per cent potential upside in the stock. Ace investor Rakesh Jhunjhunwala also owns 8% stake in this smallcap.
So, what is really working for it?
First and foremost, the company is sitting on a decent order book. Analysts believe past concerns about the company piling up debt, low cash flows and slow-moving orders have largely been addressed.
Rakesh Jhunjhunwala s VIP bet headed for a phase of underperformance?
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NEW DELHI: VIP Industries, the company where Rakesh Jhunjhunwala owns 5 per cent, could not enthuse analysts much with December quarter earnings. Brokerages said aggressive cost cutting is unsustainable and the revenue recovery post-Covid still remains muted.
While the green shoots are visible, analysts believe revenue and margin normalisation for the baggage maker are still five-six quarters away, and the stock may underperform the market after nearly doubling the price from the lows of March, 2020.
What does the management say?
Chairman Dilip Piramal minced no words in accepting that luggage was among the sectors worst-affected by Covid. Piramal told ETNOW that VIP’s sales were only 7 per cent of pre-Covid levels in Q1 and 25 per cent in Q2, which reached 54 per cent in Q3. “The trend is continuing and that is a good sign,” he said.