Titan, NCC, Delta Corp, Karur Vysya Bank, Aptech, and
Jubilant Life Sciences are among stocks in Jhunjhunwala’s portfolio that have
taken a severe hit, falling more than 50 per cent during the period.
The frontline indices
Sensex and Nifty have plunged 37 per cent so far in CY20, owing to the meltdown
in markets triggered by the coronavirus pandemic. The fall has wiped off nearly
Rs 54 trillion in market capitalisation of BSE-listed companies.
Amid the massacre, the net
worth of Rakesh Jhunjhunwala and family, Ashish Dhawan, Anil Kumar Goel and
family, Ashish Ramchandra Kacholia, and Dolly Khanna has taken a massive
hit.
Rakesh Jhunjhunwala and
family -- the big bull of the equity markets -- have lost Rs 4,558 crore in
CY20 so far, with the value of their investments slipping below Rs 10,000
crore.
Based on Monday’s closing,
the Jhunjhunwala family’s total investments in listed companies stood at Rs
8,021 crore, down 36 per cent from the Rs 12,480 crore at December-end.
According to the latest
shareholding figures, these investors have taken a sharp hit in their holdings
in mid- and small-cap firms where they held an over one percentage point stake,
on account of the correction. The mid-cap and small-cap indices have slipped 35
per cent during this period.
For instance, Rakesh
Jhunjhunwala and wife Rekha Jhunjhunwala have seen value erosion of Rs 2,314
crore in their Titan stake. They hold 6.69 per cent in the firm. The Titan
scrip has slipped 33 per cent to its 52-week low of Rs 775.
Jhunjhunwala’s investment
in Titan, based on the December 2019 quarter’s shareholding pattern, now stands
at Rs 4,740 crore.
NCC, Delta Corp, Karur
Vysya Bank, Aptech, and Jubilant Life Sciences are among stocks in
Jhunjhunwala’s portfolio that have taken a severe hit, falling more than 50 per
cent during the period.
Anil Kumar Goel and Seema
Goel, who hold stocks of sugar companies such as Dhampur Sugar Mills, Triveni
Engineering and Industries, Dwarikesh Sugar Industries, and Uttam Sugars in
their portfolio, have seen average value erosion of 54 per cent to Rs 405
crore.
On the other hand,
investors such as Ashish Dhawan, Ashish Ramchandra Kacholia, and Dolly Khanna
have seen their portfolio value dip between 44 per cent and 50 per cent in
CY20.
While the jury is still out
on how long the health scare will continue to impact the markets, analysts at
ICICI Securities say the real impact will come from the demand side, due to the
cascading impact of the slowdown. This could lead to suppressed prices and,
thereby, financial growth of most companies.
‘Majority of the negative
outcomes from Covid-19 in at least the next two quarters are already discounted
across global indices. However, any delay beyond that, or a substantial
increase in infection, could result in more a negative outcome. Hence, the
probability of further downside in equity indices cannot be ruled out,’ wrote
Chirag Shah and Dhavan Shah of ICICI Securities, in a note.
Meanwhile, valuations of
the mid- and small-cap segments have dipped below the long-term averages.
“After the correction, the
current price-to-earnings (P/E) of the NSE Mid-cap Index is -33 per cent/-22
per cent, versus its 5/10-yr average. For Nifty, the same stands at -21 per
cent/-15 per cent. On the other hand, the current P/E for our Mid-Cap coverage
is -27 per cent/-1 per cent versus its 5/10-yr average,” says Sonali
Salgaonkar, an analyst with Jefferies.
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