Rakesh Jhunjhunwala on good and bad stocks in his portfolio

Rakesh Jhunjhunwala has recently turned 50. He was interviewed by CNBC TV-18 for his views ahead for Indian stocks and about his good and bad investments till now. There are many people out there who follow Rakesh Jhunjhunwala portfolio religiously and his investment philisophy. If you are one of them, you would certainly be interested in knowing his bad stocks.

I am posting excerpts only about good and bad stocks held by Rakesh Jhunjhunwala from Moneycontrol.com website, click here to read entire interview about celebration of his 5oth birthday and his views on future.

Mukherjee: I want to come back to your portfolio, since we are talking 50 years, what is the best stock you have ever owned, your all time favourite stock?
Jhunjhunwala: Titan, I wear it on my hand.

Mukherjee: Just because it has made you money? There is no other emotional attachment to any other stock?
Jhunjhunwala: Look at the company.

Checkout Rakesh Jhunjhunwala Portfolio : updated as per June 2010 data.

Mukherjee: It has done superbly, phenomenally well; I thought it might be a close contest with Lupin, which is another stock, which has made you a lot of money?
Jhunjhunwala: No, I think a stock in which I have emotions is Karur Vysya Bank.

Mukherjee: Why? What is the story?
Jhunjhunwala: Look at the sheer performance. There is 21% compounded growth in profits for the last ten years, comes from a place nobody knows called Karur. It is not a small bank now, its profitability is about USD 90 million, growing at 20-25% and I own it since 1992-1993-94.

Mukherjee: You haven’t sold anything?
Jhunjhunwala: No, I haven’t sold. I think this investment has given me I don’t know how much thousand percent return.

Mukherjee: In the listed space, one stock which really makes you angry that you bought that?
Jhunjhunwala: Infomedia 18. I sold it just about six months back. But if you look at the stats, special interest publication magazine with a market in America, leadership in yellow pages and I held the stock for at least for seven-eight years.

Mukherjee: Eight years?
Jhunjhunwala: May be seven-eight years and then I sold it, maybe with some loss. Though I think good industry, good positioning, but I never made money.

Mukherjee: You bought VIP recently, what attracted you to that story?
Jhunjhunwala: It is a no-brainer in terms of growth. In travel, it dominates. I started buying it at Rs 65. My average cost would not be more than Rs 120 or maybe less. So, it is a no-brainer, according to me.

Mukherjee: What do you think of banks? You have never spoken about that, it is a big industry, you have spoken once or twice about State Bank to me in the past, are you bullish or bearish, because it seems like the bellwether in the system right now?
Jhunjhunwala: I was very bullish on State Bank, but now I am negative on the stock because I don’t like a bank who cannot provide for its bad debts. They are under providing every quarter and they need time from RBI to make 70% provision. But one thing they may have upside and uprun now, but over a medium time period all of them will need capital, which is one thing, which will dilute returns.

Checkout Rakesh Jhunjhunwala Portfolio updated as per June 2010 data.