Rakesh Jhunjhunwala's top 5 picks for 2016

Excerpts from an interview with Rakesh Jhunjhunwala on ET now:

•  Positive on pharma and housing finance companies, but remains cautious on banks.
• Sees "mother of all bull runs" ahead of us.
• India to grow by 9-10 percent for decades
• His stocks for 2016:
• Rallis India
• Titan
• Aurobindo Pharma 
• Indigo
• Tata motors
•  On banks, he is positive on HDFC and Kotak Mahindra bank.

Surana Solar - Isn't this blatant cheating?

Shares of Surana solar were up 9% or so.
There was a news that Rakesh Jhunjhunwala had invested in this share.

As we know, if RJ invests, many people blindly follow.

But as per below URL,
http://www.moneycontrol.com/news/buzzing-stocks/surana-solarthe-casethe-other-rakesh-jhunjhunwala_1404510.html

it seems RJ hasn't bought the shares at all!!!

Someone opened an account by the name Rakesh Jhunjhunwala and did the trade....huh?

The stock crashed 15% later.

Pipavav Defence.....

Pipavav Defence.....

http://www.livemint.com/2011/09/12134610/Mazagon-Dock-Pipavav-to-joint.html

. Picked by state-run Mazagon Dock Ltd as its joint venture partner to build warships for the Indian Navy.

. Plans to list company overseas

. Will float an independent company to be named Mazagon Dock Pipavav Ltd (I don't like this until existing shareholders get a stake)

. Company will be executing the current order book of Mazagon Dock worth Rs1 lakh crore (Rs1 trillion) and look for new orders jointly

. Pipavav Defence owns India’s biggest dry dock used for building and repairing ships and has a licence from the government to build warships

. The company proposes to convert an existing wet dock into a second dry dock to enhance its capability to build warships for the Indian Navy and the export market

. Pipavav is currently executing orders worth a combined $1.5 billion, with defence work accounting for some 42% of the total value

Rakesh JhunJhunwala has a stake in this company.
In Pipavav, Rakesh Jhunjhunwala and his family holds 10 mn convertible warrants issued at Rs 78 a share

What more does one want? Will you invest?

UPDATE (13th Oct) -
As per
http://www.moneycontrol.com/news/business/i-t-searches-at-pipavav-group-firmmumbai-delhi_598355.html#toptag

It seems the fate of the JV is unclear.

Addendum - Sterling Hotels

Addendum - Sterling Hotels

In addition to my earlier post on Sterling Hotels, Rakesh Jhunjhunwala and Radhakrishna Damani have invested 800 mn INR.

http://www.indiainfoline.com/Markets/News/Sterling-Holiday-Resorts-up-after-Jhunjhunwala-invests-in-stake-reports/5254397841

Stock jumped close to 10% and was in upper circuit.

However, today it didn't hit a circuit.

Need to decide: Trust RJ and RD's judgement and make a splash?
I know I didn't for VIP and regretted ever since.

Rakesh Jhunjhunwala...Radhakishan Damani...uh..how about both?

Radhakishan Damani - Dream investment was VST Industries.
Bought 26% (approx) @ price of 63 crores (source: moneycontrol)
Current Investment value: 520 crores in 10 years.
Dividend: 71 crores

Rakesh Jhunjhunwala - Dream Investment was Titan Industries.


Do these both have any stock in common?
Yes.

CRISIL, Delta Corp, Sterling Holday Resorts.
I had mentioned a post on Sterling Holiday resorts (http://mymoneyrules.blogspot.com/2011/08/holiday-season-resorts-beckoning.html)

What do they look for in a stock?
All stocks which have a competitive advantage.

VST Industries: Cigarette Industry with no new competition coming in
Delta: Gambling (highly lucrative + goa advantage)
Sterling Holiday: 14 resorts which a new competitor will have a tough time (courtesy high real estate prices)

We have to spot companies with strong fundamentals + competitive edge and hold them close to heart with patience.

Some just follow either Radhakishan Damani or Rakesh Jhunjhunwala

Some others, may follow both by buying the common stock from their portfolio.....are you one of them?