InvestorQ : Is it true that Rajesh Jhunjhunwala is exiting stocks like Federal Bank and Edelweiss and buying Titan? What does it mean for these stocks?
Neelam Naik made post

Is it true that Rajesh Jhunjhunwala is exiting stocks like Federal Bank and Edelweiss and buying Titan? What does it mean for these stocks?

Answer
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Priyanka N answered.
8 months ago


That is true and has already been reported in the holding change statement but you need not read too much into it as these are normal churning practices by large investors based on the relative valuations. In fact, Jhunjhunwala trimmed holdings in at least four portfolio stocks and these include stocks like Federal Bank, Edelweiss and Firstsource.

Rakesh’s shareholding in Firstsource Solutions fell by 0.32% to 2.78%, at the end of December quarter while his stake in Federal Bank reduced his stake by 21 bps to 2.90%. In addition, he also tripped his holdings in Edelweiss Financial Services. At the same time, Rakesh raised his stake in old favourite Titan by 68 bps to 6.69%. Titan has been a long time wealth creator for Rakesh and he had recently cut his stake after the stock announced slowdown in growth. However, with prices relatively lower now, the investor is buying back into the stock.

As I underlined earlier, don’t read too much into these churnings. Investors constantly look for opportunities to cash out on overpriced stocks and enter into undervalued stocks. However, here it appears to be a case of the investor cutting his stake in the vulnerable financial sector stocks and plumping for good old FMCG products.