Rakesh Jhunjhunwala Sells 25 Lakh Delta Corp Shares; Stock Tanks Over 4%

Ace investor Rakesh Jhunjhunwala sold 25 lakh equity shares (0.93 per cent of total shareholding) in the company via open market transactions. With this, Jhunjhunwala’s shareholding has gone down to 6.16 per cent, down from 7.1 per cent earlier, according to an exchange filing. On Wednesday, Delta Corp shares were down nearly 4.08 per cent in noon deals at Rs 209.50 apiece on NSE.

The stock of Delta Corp has been in a downtrend since April . The stock has been continuously falling over the last eight weeks.

Rakesh Jhunjhunwala and wife Rekha held a combined stake of 7.5 per cent, as of March 31. In November 2016, Jhunjhunwala, along with his wife, held 10 per cent in Delta Corp. From October 2017 to May 27, 2022, the investor sold 57,50,000 shares in the company, thereby reducing the stake to 7.1 per cent. After the latest transaction, he holds 6.2 per cent or 1,65,00,000 shares of Delta Corp.

Delta Corp recorded a 16.7 per cent declined in its Q4FY22 net profit at Rs 48.1 crore, dented by muted topline growth and weak operating performance. Revenue grew 3.3 per cent to Rs 218.3 crore from the year-ago period.

Earnings before interest, tax, depreciation, and amortization (EBITDA) were down 12.8 per cent at Rs 69 crore and the margin contracted 590 bps YoY to 31.6 per cent in the quarter ended March 2022.

On one hand where the Jhunjhunwala Portfolio stock Delta Corp hasn’t been performing well. But, the ace investors favourite portfolio bet, Titan Company, in the last 5 trading sessions has risen from around Rs 2134 to Rs 2295 levels, helping Big Bull to earn around Rs 720 crore in this period.

In the last 5 sessions, this Tata group stock has shot up from Rs 2134.30 to Rs 2295 levels, logging Rs 160.70 per share or a 7.50 per cent rise in the last one week.

As per the shareholding pattern of Titan Company Limited for the January to March 2022 period, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have a shareholding in this Tata company. Rakesh Jhunjhunwala owns 3,53,10,395 Titan shares or a 3.98 per cent stake in the company whereas Rekha Jhunjhunwala holds 95,40,575 shares or 1.07 per cent stake in the company. So, the Jhunjhunwala couple holds 4,48,50,970 Titan shares, which is 5.05 per cent of total paid-up capital of the company. As Rakesh Jhunjhunwala holds 4,48,50,970 Titan shares and the Tata group stock has risen Rs 160.70 per shares, net jump in Big Bull’s wealth after rise in this portfolio stock in last one week is around Rs 720 crore ( Rs 160.70 x 4,48,50,970).

Jhunjhunwala runs a privately-owned stock trading firm called RARE Enterprises. He has invested in Titan, CRISIL, Aurobindo Pharma, Praj Industries, NCC, Aptech Limited, Ion Exchange, MCX, Fortis Healthcare, Lupin, VIP Industries, Geojit Financial Services, Rallis India, Jubilant Life Sciences, etc.