This Rakesh Jhunjhunwala stock nearly doubled in 2017, Kotak Securities says buy

Investment maestro Rakesh Jhunjhunwala’s ability to pick multi-bagger stocks needs no elaboration, as in 2017 alone, many of his stock picks have more than doubled investor wealth. Kotak Securities is bullish on the shares of one such company, and its target price implies an upside of more than 30% from current market prices.

Rakesh Jhunjhunwala holds 1.8% stake or 3.47 lakh shares of Federal Bank as at the end of December-17.

Investment maestro Rakesh Jhunjhunwala’s ability to pick multi-bagger stocks needs no elaboration, as in 2017 alone, many of his stock picks have more than doubled investor wealth. The shares of Federal Bank is one such stock pick, which nearly doubled in the previous calendar year 2017. Notably, Rakesh Jhunjhunwala holds 1.8% stake in the company or 3.47 lakh shares of the company, translating to Rs 376.8 crore at today’s share prices.

While investors may be mulling whether to invest in the shares, Kotak Securities has a buy on the shares with a target price of Rs 140. Federal Bank shares were trading at Rs 108.5, down by more than 4.5% this morning on NSE. The brokerage firm’s target price implies an upside of nearly 30% from current market prices.

Federal Bank has posted a 26.43 percent rise in net profit at Rs 260.01 crore for the third quarter ended December 31, 2017. The private sector lender had reported a net profit of Rs 205.65 crore in the same quarter previous fiscal. Total income of the bank came in at Rs 2,729.83 crore during the quarter from Rs 2,556.83 crore in the year-ago period, it said in a regulatory filing. Kotak Securities says that it continues to like the execution of the bank. Further, the research and brokerage firm expects RoE to move closer to 12% in the upcoming quarters.

During the quarter, the gross non-performing assets (NPAs) fell to 2.52 percent from 2.77 percent at the end of the third quarter of 2016-17. Net NPAs of the bank stood at 1.36 percent as against 1.58 percent reported in the same quarter of the previous fiscal.

Notably, ace investor Rakesh Jhunjhunwala has reduced his stake to 1.80% in Federal Bank, from the earlier 1.85% as at the end of September-2017. Four other stocks in his portfolio had more than doubled in 2017. These include his favourite scrip Titan Company Ltd returning 161%, Delta Corp Ltd shares which returned 170%, shares of Dewan Housing Finance which surged by 142% and shares of Escorts Ltd which zoomed 158%.

What sets the man apart from other investors in the stock market? In his own words–ability to take risk. “One thing which keeps me apart is that I have got guts. I may have Rs 1,000 in my bank but if I think the deal is worth a crore – I will do it. I have guts and setbacks don’t put me off. I feel them for 10 minutes but then I am ready to fight back,” Rakesh Jhunjhunwala explained in a recent interview with CNBC TV18.

http://www.financialexpress.com/market/this-rakesh-jhunjhunwala-stock-nearly-doubled-in-2017-kotak-securities-says-buy/1016919/