Indian ace investor and stock market trader Rakesh Jhunjhunwala’s three portfolio stocks Federal Bank, Lupin, and Orient Cement are among domestic brokerage and research firm Axis Securities’ top stock recommendations for August 2021.
Axis Securities in its recent stock picks report for the month said that it foresees robust performance sustaining during the month for such recommendations. It has a target price of ₹100 per share for banking stock Federal Bank, ₹180 for Orient Cement, and ₹1,400 for pharma stock Lupin.
As per Federal Bank’s BSE shareholding pattern, Rakesh Jhujhunwala’s stake stands at 2.78% stake in the bank during the April-June period, up from 2.40% in the March quarter. In Lupin, Jhunjhunwala’s stake stands at 1.60% for the said period. Whereas he holds a 1.22% stake in Orient Cement as of June 2021 quarter.
The brokerage’s top picks for August also include ICICI Bank, State Bank of India (SBI), Equitas Small Finance Bank, Varun Beverages, Tech Mahindra, Bharti Airtel, HCL Technologies, Camlin Fine Sciences, Ashok Leyland.
”Small and Mid Cap indices delivered a healthy 7% and 4% returns, respectively. Value investment style outperformed Growth and Momentum styles by a significant margin through Quality is coming back in flavor now. Quality gels well with our sustainability theme and our focus may increasingly shift to Quality. Currently, we maintain our allocation themes of Mid Cap, Small Cap, and Large Cap Value which have delivered healthy returns,” the note said.
It has also maintained its December 2021 Nifty target of 17,400 and overall, remains constructive on the market and believes that the dips should be utilized to build positions in the above-mentioned themes.
Shares on Tough Ride
Rakesh Jhunjhunwala’s latest stock picks are having a rough ride in the market. These stocks are down up to 30 per cent from their 52-week highs, data suggest. The ace investor entered the three counters — Nalco, Canara Bank, and Indiabulls Real Estate — in the September quarter.
Data showed Nalco, where Jhunjhunwala bought a 1.4 per cent stake in the second quarter. It has fallen 29.5 per cent from its October 18 high of Rs 124.75. Jhunjhunwala’s stake in the company is worth Rs 220 crore.
In the case of Canara Bank, the scrip was down 20 per cent over its November 9 high of Rs 247.60. While some brokerages saw the stock as a good technical buy. The 12-month fundamental target on the stock has suggested no upside.
Another Jhunjhunwala stock, Indiabulls Real Estate, is down 16 per cent from the November 9 high of Rs 195.90. Not many brokerages track this stock.
This realtor is in the process of completing its merger with Embassy Group. The move would help Indiabulls become one of the most diversified real estate companies with several land banks. The significant developmental potential across the key markets of MMR, NCR, and Bengaluru.