These stocks owned by Rakesh Jhunjhunwala are giving negative returns

In a way, COVID-19 has been a blessing in disguise for the capital markets in India. As the market has gone through huge fluctuations after making a low on March 23, 2020, due to the lockdown it is currently trading near its all-time high. Not only did the markets doubled from their March bottom but also saw many new investors entering the markets. According to media reports, around one crore, new demat accounts were opened between April 2020 to January 2021.

Nithin Kamath, co-founder of Zerodha revealed that some 17 lakh demat accounts were added in January. “How big was January 2021 for the broking industry? The best year for the markets since 2010 was by far 2014. Nifty was up more than 30% and the industry added 13 lakh new demat accounts in one year. And, in January 2021, just in one month 17 lakh new demat accounts were added,” he tweeted.

While investors have made hands over fist in many stocks over the last year, there are many stocks that are still trading in deficit. In fact, there are also some stocks even in the portfolio of veteran investor Rakesh Jhunjhunwala, which have received negative returns when compared to their year-ago prices.

Rakesh Jhunjhunwala, also known as the big bull, has a knack for understanding the markets as well as the sentiments of sectors, after which he adds or decreases shares in his portfolio. Many investors trade their portfolio taking cues from his investment decisions. In such a situation, it is even more important to know which stocks in Jhunjhunwala’s portfolio are giving negative returns in the last one year despite markets performing so well.  

Edelweiss Financial Services

The stock of India’s leading diversified financial services conglomerate Edelweiss Financial Services has given negative returns to investors over the last year. Investors saw 31% of wealth erosion in the stock as the stock fell from Rs 97.15 on February 25, 2020 to Rs 67 as of February 24, 2021.

Rakesh Jhunjhunwala had a 1.19% stake in the company as on December 2020. His is a stake in the company is valued at Rs 74.5 crore.

The Indian Hotels Company

Asia’s largest hotel company Indian Hotels stock delivered a negative return of 14% as the share price fell to Rs 120 apiece from Rs 139 a year ago.

Rakesh Jhunjhunwala and Rekha Jhunjhunwala jointly hold a 2.10% stake in the company which is valued at Rs 300 crore.

VIP Industries

VIP Industries is another stock in Jhunjhunwala’s portfolio that has disappointed investors. The stock has fallen from Rs 445 as of February 25, 2020 to Rs 385.75 on February 24, 2021.

As of December 2020, Rakesh Jhunjhunwala held a 3.69% stake in the company. And his stake is valued at Rs 201 crore.

Delta Corp

Delta Corp has also given negative returns this year. Investors in the stock have received negative returns of 1.76% over the last one year. On February 25, 2020, Delta Corp’s share price was Rs 153 and has marginally slipped to Rs 150.75 on February 25 this year.

Rakesh Jhunjhunwala and Rekha Jhunjhunwala jointly hold 7.5% of the company which is valued at Rs 301.5 crore.

It is only a reflection of his & his family members portfolio as we have only considered those stocks where they had at least 1% stake at the end of the December 2020 quarter.