You must be wondering why Rakesh Jhunjhunwala is called the Warren Buffett of India. So here is one of the examples set by this ace investor to keep his name on the throne.
You must be flabbergasted to read this, but it is true. The man has actually made it possible. Rakesh, along with his wife, Rekha Jhunjhunwala, has earned Rs. 915 crore, just with Titan Company stock, in mere three months.
So, here’s the story. Rakesh Jhunjhunwala bought 6 crore shares of Titan, way back in 2002-2003 at Rs. 3 per share. Since then, he has maintained a variable account in buying and selling of those shares from his portfolio.
He held 5.72 percent stake or 5.07 crore shares of Titan Company at the end of this year’s March quarter.
On the other hand, his wife, Rekha Jhunjhunwala held 1.32 percent stake or 1.16 crore shares in the firm, for the same period.
It is worthwhile to know that Rakesh has pared his stake from 5.78 percent to 5.72 percent and his wife, Rekha has increased her shareholding during the same period from 1.30 percent stake to 1.32 percent stake.
The Titan Company’s stock rose to its all-time high of Rs. 1287.55, from Rs. 1141.05 on March 29 this year, registering a rise of 12.83 percent.
Rakesh alone is sitting with a profit of Rs. 743.86 crore and the same with Rekha is 171.05 crore.
The Jhunjhunwala couple is absolutely playing their game to its perfection. They had Rs. 7125 crore of investment in the stock of the firm, in the March quarter. Now, the stock is worth over Rs. 8040 crores, giving them a benefit of Rs. 915 crore.
The company’s consolidated net profit increased by 14.4 percent, from Rs. 304 crore in the March quarter last year to Rs. 348.3 crore in this March quarter. Alongside, the total revenue also rose from Rs. 4125 crore to Rs. 4945 crore in a year, registering a 19.87 percent rise.
The company posted a net profit of Rs. 1388.65 crore for 2018-19 fiscal as against the 2017-2018 fiscal, where it posted Rs. 1101.91 crore of net profit.