Rakesh Jhunjhunwala portfolio stock rises 60% in FY22. Experts see more gains

Market


Rakesh Jhunjhunwala portfolio: As around 17 Big Bull stocks are trading 20 per cent to 50 per cent below its 52-week high, some small-cap stocks have managed to beat NSE Nifty and BSE Sensex return by huge margin. Orient Cement shares are one of them. This Rakesh Jhunjhunwala share holding company has given 78 per cent return in YTD (Year to Date) terms while NSE Nifty and BSE Sensex have given 25.44 per cent and 27.35 per cent return returns respectively in this period. Orient Cement share price closed at 97.80 apiece on 31st March 2021, which now has gone up to 156.35 per stock levels — logging around 60 per cent rise in FY2021-22.

According to stock market experts, this Rakesh Jhunjhunwala holding company has witnessed strong growth in profit with significant improvement in margins. The cement stock continues to remain FII’s favorite as they have doubled their stake in the company from March 2021 to June 2021 quarter. They said that Orient Cement share price has given fresh breakout at 150 and it can breach its all-time high of 232 in medium term.

Speaking on Orient Cement share price outlook; Sumeet Bagadia, Executive Director at Choice Broking said, “The stock looks bullish on chart and has strong support at 150. One can buy this counter at current market price for the immediate target of 170 to 180 maintaining stop loss at 150 levels.”

Highlighting the fundamentals that may fuel this Rakesh Jhunjhunwala portfolio stock; Santosh Meena, Head of Research at Swastika Investmart Ltd said, “The outlook for the cement sector is bullish on the back of a sharp recovery in the real estate sector and the expectation of robust growth in the infrastructure sector. If we talk about the Orient cement then it has witnessed strong growth in profit with significant improvement in margins moreover revenue growth is likely to catch momentum in the coming days.”

Speaking on reason for being bullish on this Rakesh Jhunjhunwwala portfolio stock; Rahul Sharma, Co-Founder at Equity99 said, “Company has superb ROCE of 19.1 per cent and ROE of 17.6 per cent. Company has reduced debt and currently has DE ratio of 0.61. Company is available at PE multiple of just 11.9 against industry PE multiple of 16 and has MCap of 3298 crore against EV of 4059 crore. Company has delivered superb PAT growth of 69 per cent CAGR over last 3 years. And it has been consistently generating increasing operating cash flows over the last 5 years.

Asked about Orient Cement share price target for medium term; Santosh Meena of Swastika Investmart said, “Technically, It has started a fresh bull run after a breakout of falling channel formation where 170-180 could be near term supply area but it is likely to cross its all-time high of 232 in the medium term. On the downside, 150 is immediate support while the 130-125 area will be a critical demand zone for a buying opportunity.”

Rakesh Jhunjhunwala share holding in Orient Cement

As per the shareholding pattern of Orient Cement for April to June 2021 quarter, Big Bull holds 25 lakh company shares, which is around 1.22 per cent of the total issues and market capital of the company.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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