Rakesh Jhunjhunwala Portfolio: Veteran investor Rakesh Jhunjhunwala has reduced his stake in infrastructure development firm NCC Ltd in the first quarter of FY23. During the quarter, Jhunjhunwala suffered a sharp decline in the assets of his portfolio due to market volatility amid macroeconomic risks. In the last quarter, Jhunjhunwala had sold 0.38 per cent stake in NCC. His shareholding stood at 12.48 per cent at the end of Q1. However, Rekha Jhunjhunwala, wife of veteran investor Rakesh Jhunjhunwala, kept her stake in the underperforming stock NCC unchanged as compared to the March quarter’s holdings.
The stock has fallen 19.3 per cent so far in 2022. The BSE Sensex had lost 8 per cent during the same period last year. The NCC has actually lost 40 per cent of its value. Rakesh Jhunjhunwala has been investing in this stock since at least December 2015.
As per the latest shareholding pattern, in the June 2022 quarter, Rakesh Jhunjhunwala holds 11,600,000 equity shares or 1.85 per cent in his wife’s name Rekha Jhunjhunwala. He holds 66,733,266 equity shares or 10.63 per cent stake in the name of Jhunjhunwala Rekha Rakesh.
NCC trades on the BSE under the ‘A’ group in the S&P BSE 500 Index. NCC shares hit a 52-week high of Rs 97.90 on July 13, 2021 and a 52-week low of Rs 51 on June 21, 2022.
For the full year of FY 22, NCC has achieved a total income of Rs 11,209 crore as compared to Rs 8,065 crore in FY 22. EBITDA increased to Rs 1,023.80 crore in FY22 from Rs 919.08 crore in the previous fiscal. Further, the PAT increased to Rs 482.41 crore as against Rs 268.31 crore in FY2011.
In May, following Q4 and FY12 earnings, research analysts at ICICI Securities downgraded their rating from ‘Buy’ to ‘Hold’. “Sharp debt reduction has been a significant positive. However, margins are likely to witness volatility in FY23. Thus, we assign a hold versus buy rating first,” said analysts, adding, “We assign NCC 70/share (9x FY24 P/E).”
Highlighting the triggers for future performance, analysts at NCC said, the continued momentum in carrying out activities to translate into healthy order flow for the company as well as capitalizing on the vast infrastructure pipeline is firmly placed. has gone. Also, expect 10.3 per cent revenue CAGR in FY22-24E with a margin of 10 per cent. In addition, the focus is on monetization of non-core subsidiaries to bring in cash flow. Meanwhile, with a gradual decline in debt, one can expect open receivables to boost liquidity and strengthen the balance sheet.
During Q1FY23, as per the data, Jhunjhunwala’s assets declined by 24.67 per cent to Rs 25,425.88 crore as compared to a record net worth of Rs 33,753.92 crore in the March 2022 quarter. Presently Rakesh Jhunjhunwala holds 33 shares in the exchanges.
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