Jhunjhunwala portfolio: The stock portfolio of Jhunjhunwala family, led by Rekha Jhunjhunwala, fell 13 per cent since September quarter against 8-9 per cent slide for Sensex and Nifty during the same period. At Tuesday's close, the Jhunjhunwala stock portfolio was worth Rs 40.082.90 crore against Rs 55,095.90 crore at the end of September quarter, down 13 per cent, as per publicly available data with Trendlyne.
None of the top five Jhunjhunwala stocks delivered positive return during the same period. Titan Company Ltd, Concord Biotech, Star Health and Allied Insurance Ltd, Tata Motors and Metro Brands, Jhunjhunwala's top five stocks in terms of value of investments, fell 6-24 per cent since September quarter.
Titan Company Ltd, where Jhunjhunwala's 5.1 per cent stake is worth Rs 14,741 crore, is down 15.80 per cent since September 30, as poor Q2 results weighed heavy on the counter. This stock fell as Q2 Jewellery segment margins disappointed, with the Titan management slashing its FY25 margin guidance by 100 basis points. Brokerages such as Goldman Sachs and Jefferies said the impact of custom duty cut while benefited the jewellery growth, weighed negatively on reported margins, with adjusted numbers also coming in weak due to inferior product mix.
Another Tata group stock Tata Motors fell 20 per cent since September 30. Rekha Jhunjhunwala held 1.3 per cent stake in the auto major worth Rs 3,741.4 crore. In the case of Tata Motors, analysts noted that while British arm JLR retained its FY25 EBIT margin guidance of 8.5 per cent, it cut its free cash flow (FCF) guidance from 1.8 billion British pounds to 1.3 billion British pounds due to high capex.
Despite a superior product mix, weak ASP, easing gross margin and rising variable marketing expenses are areas of concern, InCred Equities said.
Star Health and Allied Insurance Company Ltd shares in fact plunged 24 per cent since September 30. Post Q2 results, analysts noted that claims ratio witnessed an increase of 410 bps YoY for Star Health owing to the prolonged monsoon impact, increased severity, higher claims, and rising share of the group business.
"While scale benefits will help reduce the expense ratio, the loss ratio will be driven by pricing actions and product mix apart from external factors such as medical inflation. We reiterate our Buy rating with a target of Rs 630 (based on 26x Sep’26E EPS)," MOFSL said.
Metro Brands Ltd shares declined 13 per cent in the earnings season. The past six quarters have been a series of transitional periods for Metro Brands, with Q2FY25 being no exception. Gross margins were impacted by liquidation of FILA’s inventory, it said. The company has improved its store addition trajectory, and plans to add up to 65 stores by the end of this year, taking total store additions in FY25E to 100. "Decline in MBL’s revenue per store seems to be stabilising, but the upcoming seasonally weak Q4 would be a crucial test," it said while suggesting a target of Rs 1,175.
Concord Biotech Ltd is down 6.45 per cent in the 51-day period. The company reiterated its high-teen revenue growth guidance and expects the API segment to deliver higher growth from H2FY25 onwards.
"Concord's top 5 products contributed 70 per cent to its API revenue and we expect the concentration to remain high in coming years. We believe there is room for improvement in market share for its top 5 API products on the back of genericization," Antique Stock Broking said.
This brokerage has maintained its 'Buy' rating on the stock with a revised target price of Rs 2,187 from Rs 1,920 earlier.