Rakesh Jhunjhunwala success story: According to the latest updates on Forbes, the net worth of Rakesh Jhunjhunwala is $5.1 Billion, which is equivalent to over Rs 40,000 Crores. So, how did a regular guy from Mumbai with just Rs 5,000 became one of the most successful stock investors in Indian history? This is what we are going to discuss today.
In this post, we are going to walk you through the journey of Rakesh Jhunjhunwala in the Indian stock market. How he made over Rs 40,000 Crores starting from just Rs 5,000. Let’s get started.
Rakesh Jhunjhunwala Success Story
Rakesh Jhunjhunwala, also known as the ‘big bull’ or ‘Indian Warren Buffett’ was born on 5th July 1960 in Mumbai. His father was an Income tax officer.
Rakesh Jhunjhunwala consistently used to hear his father discussing the stock market with his friends. As he was very curious about stocks, so once he asked his father why the stock price fluctuates daily? His father suggested him to read newspapers as its the news that makes the price of stocks fluctuate.
Rakesh Jhunjhunwala also expressed his wish to pursue a career in the stock market. However, his father suggested him to first get a graduate degree from a college. Rakesh Jhunjhunwala graduated from Sydenham College in 1985 as a chartered accountant.
After graduation, he again discussed his career goal as a stock market investor with his father. To this, his father replied that he is permitted to pursue any career. However, he also added that he’s not going to give him any money, nor he can ask for the initial capital from any of his father’s friends.
— Entering the stock market world
Mr Rakesh Jhunjhunwala entered the stock market with just Rs 5,000 in 1985. At that time, Sensex was at 150 points (currently Sensex is hovering at 58,500 points).
Nevertheless, soon Rakesh Jhunjhunwala was able to take an amount of Rs 2.5 lakhs from one of his brother’s clients by promising to give higher returns compared to the fixed deposits.
Rakesh Jhunjhunwala’s first big profit was Rs 0.5 million in 1986. He bought 5,000 shares of Tata Tea at Rs 43 and within 3 months it was trading at Rs 143. He made a profit of over 3 times by selling the stocks of Tata tea.
In the next few years. Rakesh Jhunjhunwala made a number of good profits from stocks. Between 1986-89, he earned Rs 20-25 lakhs. His next big investment was Sesa Goa, which he initially bought at Rs 28 and then increased his investment at Rs 35. Soon, the stock rallied to Rs 65.
— Multi-baggers stocks in Rakesh Jhunjhunwala’s Portfolio
Rakesh Jhunjhunwala manages a privately owned stock trading firm called ‘RARE Enterprises’. The name is derived from the first two initials of his name and his wife Mrs Rekha Jhunjhunwala’s name.
During his long career in the stock market, Rakesh Jhunjhunwala invested in a number of multi-bagger stocks.
In 2002-03, Rakesh Jhunjhunwala bought ‘Titan Company Limited’ at an average price of Rs 3 and currently it is trading at a price of Rs 2140. He is holding over 4.4 crore shares of titan company. He has an ‘overall’ holding of 5.1% in the company as of March 2022
In 2006, he invested in LUPIN and his average purchase price was Rs 150. Today, LUPIN is trading at Rs 635. A few other multi-baggers in Rakesh Jhunjhunwala’s portfolio are CRISIL, PRAJ IND, Aurobindo Pharma, NCC, etc.
In a recent turn of events, Rakesh Jhunjhunwala once again made headlines for making 50 crores in just 8 days – Read More
Quick Fact: Apart from being on the board of directors of big companies like Prime Focus Ltd, Geojit BNP Paribas financial services, Praj Industries, Concord Biotech, etc, Rakesh Jhunjhunwala is also a movie producer. He has produced movies like ‘English-Vinglish’, ‘Shamitabh’, ‘Ki and Ka’. He is the chairman of Hungama Digital media entertainment Pvt Ltd.
— Latest Stock Portfolio of Rakesh Jhunjhunwala
Here are the latest stocks with the most weightage in Rakesh Jhunjhunwala’s Portfolio (the table is updated until Mar 2022):
|Sl No||Company Name||Quarter||No of Shares||Current Price||Percent||Total Value|
|1||Bilcare Ltd||Mar 2022||1997925.00||65.55||8.48||₹ 130,564,398.75|
|2||Canara Bank||Mar 2022||35597400.00||208.00||1.96||₹ 7,423,837,770|
|3||Geojit Financial Services Ltd.||Mar 2022||18037500.00||51.55||7.55||₹ 909,991,875|
|4||Jubilant Ingrevia Ltd.||Mar 2022||5020000.00||493.00||3.15||₹ 2,504,729,000|
|5||Prozone Intu Properties Ltd.||Mar 2022||3150000.00||21.35||2.06||₹ 66,937,500|
|6||Indiabulls Real Estate Ltd.||Mar 2022||5000000.00||62.10||1.10||₹ 318,750,000|
|7||Titan Company Ltd.||Mar 2022||44850970.00||2138.70||5.05||₹ 95,442,864,160|
|8||Man InfraConstruction Ltd.||Mar 2022||4500000.00||80.30||1.21||₹ 368,550,000|
|9||NCC Ltd.||Mar 2022||78333266.00||56.50||12.84||₹ 4,457,162,835.4|
|10||Fortis Healthcare Ltd.||Mar 2022||31950000.00||252.75||4.23||₹ 8,083,350,000|
|11||Tata Communications Ltd.||Mar 2022||3075687.00||977.00||1.08||₹ 3,010,174,866.9|
|12||Autoline Industries Ltd.||Mar 2022||1751233.00||60.15||4.62||₹ 106,299,843.1|
|13||Agro Tech Foods Ltd.||Mar 2022||2003259.00||865.10||8.22||₹ 1,713,487,585.65|
|14||Aptech Ltd.||Mar 2022||18112312.00||221.65||43.80||₹ 4,023,650,110.8|
|15||National Aluminium Company Ltd.||Mar 2022||25000000.00||74.20||1.36||₹ 1,857,500,000|
|16||Wockhardt Ltd.||Mar 2022||3000005.00||209.55||2.08||₹ 627,001,045|
|17||Anant Raj Ltd.||Mar 2022||10000000.00||59.60||3.39||₹ 589,500,000|
|18||Orient Cement Ltd.||Mar 2022||2500000.00||114.80||1.22||₹ 283,875,000|
|19||Tata Motors Ltd. - DVR Ordinary||Mar 2022||15000000.00||213.10||2.95||₹ 2,244,000,000|
|20||Delta Corp Ltd.||Mar 2022||20000000.00||180.55||7.48||₹ 3,486,000,000|
|21||Jubilant Pharmova Ltd.||Mar 2022||10770000.00||367.25||6.76||₹ 3,950,974,500|
|22||Tata Motors Ltd.||Mar 2022||39250000.00||435.80||1.18||₹ 16,908,900,000|
|23||Dishman Carbogen Amcis Ltd.||Mar 2022||5000000.00||117.85||3.18||₹ 588,000,000|
|24||VA Tech Wabag Ltd.||Mar 2022||5000000.00||242.60||8.04||₹ 1,218,250,000|
|25||Rallis India Ltd.||Mar 2022||19068320.00||196.00||9.81||₹ 3,731,670,224|
|26||CRISIL Ltd.||Mar 2022||4000000.00||3356.35||5.48||₹ 13,729,800,000|
|27||The Indian Hotels Company Ltd.||Mar 2022||30016965.00||241.95||2.12||₹ 7,328,642,004.75|
|28||The Federal Bank Ltd.||Mar 2022||54721060.00||97.00||2.64||₹ 5,307,942,820|
|29||Indiabulls Housing Finance Ltd.||Mar 2022||6000000.00||94.50||1.28||₹ 578,700,000|
|30||Edelweiss Financial Services Ltd.||Mar 2022||15125000.00||53.00||1.60||₹ 803,137,500|
|31||Star Health and Allied Insurance Company Ltd.||Mar 2022||100753935.00||533.80||17.51||₹ 53,419,736,337|
|32||Metro Brands Ltd.||Mar 2022||26102394.00||585.95||9.62||₹ 15,161,575,554.9|
|33||DB Realty Ltd.||Mar 2022||5000000.00||63.20||2.06||₹ 305,000,000|
|34||TV18 Broadcast Ltd.||Mar 2022||20000000.00||39.60||1.17||₹ 772,000,000|
|35||Nazara Technologies Ltd.||Mar 2022||3294310.00||617.35||10.10||₹ 2,088,098,393.5|
|36||Karur Vysya Bank Ltd.||Mar 2022||35983516.00||45.75||4.50||₹ 1,642,647,505.4|
— Rakesh Jhunjhunwala Stock Market Philosophy
Rakesh Jhunjhunwala considers himself as both a trader and a long-term investor. Here’s a quote from his interview with Economic times:
“Short-term trading is for short-term gain. Long-term trading is for long-term capital formation. Trading is what gives you the capital to invest. My trading also helps my investing in the sense I use a lot of technical analysis for trading at times.
If the stock is overpriced, I should sell but my trading skills tell me that the stock can remain overvalued or get more overvalued. Hence, I hold on to my investments.
So, I think they complement each other in many ways but they are two distinct compartments totally.”
Further, Rakesh Jhunjhunwala is extremely bullish on India’s growing economy and its success as an emerging market.
Overall, Rakesh Jhunjhunwala’s success story is really inspiring for new and old investors. In the end, here’s an amazing quote by Rakesh Jhunjhunwala:
“Passionate investors always make money in stock markets. You will never fail in any work if you do it with passion.” – Rakesh Jhunjhunwala
FAQs on Rakesh Jhunjhunwala Success Story
How Did Rakesh Jhunjhunwala Start?
Rakesh Jhunjhunwala started getting interested in the stock market during his college days. However, once he completed his CA from the Institute of Chartered Accountant of India, he decided to get involved full time in the stock market. He started his career in the stock market in 1985 where he invested Rs 5,000 as his first capital. Today, his net worth is over Rs 40,000 Cr as of 2022.
What is the income of Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala’s net income is worth $5.1 Billion (Over Rs 40,000 Cr) as of July 2022, according to Forbes. He makes the majority of his income by trading and investing in the stock market in his name or through his privately owned stock trading firm Rare Enterprises. Rakesh Jhunjhunwala has holdings worth over Rs 21,000 crore in different Indian companies like Titan Company, CRISIL, Tata Motors, Escorts, Fortis Healthcare, Nazara Technologies, and many more.
What is the age of Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala was born on 5 July 1960, which makes the current age of Rakesh Jhunjhunwala to be 62. He has been involved in the stock market since the 1980s and is known as the most successful stock market investor in India.
Is Rakesh Jhunjhunwala bear or bull?
Rakesh Jhunjhunwala, also known as Big Bull in India, is currently extremely bullish on the long-term growth of the Indian Economy and the Indian Equity Market. However, Rakesh Jhunjhunwala was once a bear in the Harshad Mehta days and made a lot of money by shorting stocks post Harshad Mehta Scam 1992. He was part of the Bear Cartel during that time along with other bears like Manu Manek and RK Damani.
What is Jhunjhunwala Buying?
Rakesh Jhunjhunwala entered the three stocks — Nalco, Canara Bank, and Indiabulls Real Estate — in the September 2021 quarter and two stocks — Star Health and Allied Insurance and Metro Brands — in the December 2021 quarter. Prior to it, Steel Authority of India Limited or SAIL was another new company in which Big Bull Rakesh Jhunjhunwala bought a fresh stake in April to June 2021 quarter. In addition, Rakesh Jhunjhunwala has also invested in Akasa Air this year, to enter the airline industry.
Who is Rakesh Jhunjhunwala’s wife?
Rakesh Jhunjhunwala is married to Rekha Jhunjhunwala since February 1987. They have a daughter and twin sons. Rekha Jhunjhunwala also co-owns Rare Enterprises, which is the privately owned stock trading firm of Rakesh Jhunjhunwala.
What is the profession of Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala’s qualifications include Chartered Accountant from The Institute of Chartered Accountants of India and B.Com from the University of Mumbai. By profession, Rakesh Jhunjhunwala is a Stock Market investor and trader. He also owns his private stock trading firm known as Rare Enterprises.
What is Rakesh Jhunjhuwala’s airline name?
Rakesh Jhunjhuwala backed airline is known as Akasa Air. He is the co-founder of the newest airline and owns 40% of the company, along with Aditya Ghosh, former President of Indigo who will have a 10 percent stake in Akasa Air. The airline will start operations in July 2022 and is planning for ultra-low-cost domestic flights.
What is the story of Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala, the son of an Income-tax officer, has a very promising story in the Indian stock market. A CA by qualification, he started his career in the Indian stock market in 1985 with mere Rs 5,000, and today he is worth over Rs 40,000 Crore. During the start of his career, he was a bear and made a lot of money shorting stocks during and after the post-Harshad Mehta scam period. However, later he turned into an investor and is bullish on the market.
How did Rakesh Jhunjhunwala become famous?
Rakesh Jhunjhunwala’s first successful investment was in Tata tea in 1986, where he bought 5,000 of its shares at Rs 43, which later rose to Rs 143 in three months, giving him over three-fold returns. Later, his other successful investments include Tata Power, Sesa Goa (Now Vedanta Ltd), Praj Industries Ltd, etc also make him famous in the Indian stock market.
What did Rakesh Jhunjhunwala say about Harshad Mehta?
In Rakesh Jhunhunwala’s own words, he said that the market valuations were “incredulous” during the Harshad Mehta time. However, Rakesh Jhunjhunwala has also admitted in an interview that if Harshad Mehta would have continued to scam for one more month, he would have become bankrupt.
That’s all for the article. Let me know what do you think of Rakesh Jhunjhunwala success story in the comment section below. Happy Investing!
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