INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Rakesh Jhunjhunwala follows his own instincts when it comes to investing
What else can explain the ace investor's expos ure to companies that are struggling with a big debt load
His investment in Jaiprakash
Associates (JAL) has now become the talking point of sorts
Jhunjhunwala increased his stake in Jaiprakash Associates to 1.98 per cent in June quarter from 1.19 per cent at the end of March quarter,
latest shareholding data showed
He bought 2 crore shares in June quarter
At the end of March 2018, Big Bull's stake in the company stood at 3,00,00,000 shares, or 1.19 per cent, which has now increased to
5,00,00,000 shares, or 1.98 per cent.
Under the current circumstances, the financial conditions of JAL would have made any investor step
But for Jhunjhunwala, it's a different ballgame altogether.
"You are badly mistaken
Jaiprakash has got various businesses," Jhunjhunwala told ETNow, trying to explain the rationale of his bets
What about financials on a consolidated basis
Pat comes the reply: "No, consolidated basis mein kya lena dena usko (what has the company to
do with consolidated basis The promoters cannot bid for Jaiprakash Infrastructure
Their debt in Jaiprakash industry is nothing
It is Rs 5,000 crore."
He went on to add: "They have settled with all the banks
So, I do not agree with you that Jaiprakash industry has got disproportionate debt."
In that case, what makes him so optimistic about
Jaiprakash Associates "The promoters have got a cement business which is valued more than 5,000 crore," the Big Bull explained.
The Warren
Buffett of India is also of the view that 50-60 per cent of the correction in midcap stocks is gone
Polarisation in the market will "correct itself"
His piece of advice: It's time to buy bank stocks with a 5-year view
"I am very bullish on the pharma sector
I am holding on," the market hotshot said.
