Rakesh Junjhunwala: A Journey From Rs 5k to USD 1.8 billion

25 Oct, 2020

5 min read

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Success Story of Rakesh Jhunjuhnwala - Smart Money
He started with a paltry sum of Rs 5000 in 1985 and made it big. According to the latest Forbes report, his wealth stands at a staggering volume of USD 3.1 billion, approximately, Rs 19,000 crores.

Do you want to know who this man is? He is Mr Rakesh Jhunjhunwala, whose remarkable success story in Dalal Street has earned him many monikers, including the Big Bull and the King of the Dalal Street. His story from rag to riches is an inspiration to many of us. And, we are going to discuss how an ordinary man from Mumbai became such pivotal in the India financial market. It is the story of the most successful stock market investor in India.

Who Is Rakesh Jhunjhunwala?

Rakesh Jhunjhunwala is popularly known as India’s very own Warren Buffet and has made a name for himself as one of the country’s successful investors. He also goes by the sobriquet, the Big Bull.  The chartered accountant and trader is at #48 on the Forbes’ Rich List. He is also the chairman of Aptech and Hunga, a Media apart from being on the board of many firms. The D-Street biggie started trading in the stock market back in 1985 with a capital of Rs 5,000 which had grown to Rs 11,000 crore by 2018. As per Forbes, his net worth as of mid-year 2021 was over $4.6 billion. He also runs a privately-owned trading firm apart from investing in some well-known firms. 

Rakesh Jhunjhunwala was born to a middle-class family in Mumbai on July 5, 1960. His father was an Income tax officer who also invested enthusiastically in the stock market. Growing up in an environment where share market discussions were regular, young Rakesh got attracted to trading at an early age. When he told his father about his aspiration, his father urged him to complete his education first. So, he went ahead to graduate from Sydenham College and later became a qualified Chartered Accountant. Rakesh then pursued his dream of becoming an investor in stocks. When he entered the stock market in the mid-80s, BSE was only 150 points (currently, BSE is trading over 35,000 points). He made his first big profit with Tata Tea. He sold 5000 shares of Tata Tea in 1986 for Rs 143 which he bought at Rs 43.

Rakesh Jhunjhunwala's personal life and education

The ace trader got married to Rekha Jhunjhunwala in 1987 and has three children from the marriage, including twins.His wife gave birth to their daughter Nishtha in 2004. His twin sons, Aryaman and Aryaveer were born in 2009. His wife is also an investor in the stock market.

Rakesh Jhunjhunwala’s Stock Market Success

To the uninitiated, share trading sounds complicated, but not to Rakesh Jhunjhunwala. It occurs to him naturally. Between 1986 and 1989 he made Rs 2.-2.5 million in trading stocks of Sesa Goa (now Vedanta). One of the best stocks in his portfolio is Titan. He bought those shares in 2002-03 at the price of Rs 3 apiece. Those shares are currently trading at Rs 1,182 in the market, earning him 35 lakhs every hour for an investment value of Rs 8100 crores. So, how does he do it?

He once famously said, “Markets are like women - always commanding, mysterious, unpredictable and volatile.

He believes that his ability to invest in the right asset at the right time had been critical for his success.

“My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success.”

Rakesh has featured in the Forbes list several times. Many companies have given him many names, like Economic Times called him the ‘Pied Piper of Indian Bourses’.

A successful investor and an entrepreneur, Jhunjhunwala has also invested in several businesses. He is the chairman of Aptech Limited and has an asset management company named RARE. Jhunjhunwala is also a member of the board of many Indian companies.

 

Lesser known facts about Rakesh Jhunjhunwala

  • Rakesh Jhunjhunwala is not just a successful investor but also a philanthropist and donates 25 per cent of his wealth to charity. He also contributes to Agastya International Foundation, St Jude, which provides shelters for cancer-afflicted kids, and Arpan, which raises awareness about child sexual abuse in India.
  • Rakesh has a love for Bollywood and is the producer of the well-known Hindi flick English Vinglish.
  • He is a foodie and loves watching cookery shows. He is known to love Chinese food.
  • Jhunjhunwala started his own stock trading firm and called it RARE Enterprises after the first two initials of his and his wife’s names, Rakesh and Rekha.
  • The D-Street investor was said to be a bear in the days of Harshad Mehta was known to have earned money by shorting stocks back then.

Rakesh Jhunjhunwala's Portfolio

Rakesh Jhunjhunwala is said to own 46 stocks as per reports. Here are the companies and the value of the stocks in Rs crores.

COMPANY

VALUE IN (IN RS CRORES)  As of September 2021.

1. Agro Tech Foods Ltd

192

2. Anat Raj Ltd

75.18

3. Aptech Ltd

424.24

4. Bilcare Ltd

16.31

5. CRISIL Ltd

1,145.96

6. DB Realty Ltd

25.71

7. Delta Corp Ltd

516.70

8. Edelweiss Financial Services Ltd

113.92

9. Escorts Ltd.

1296.83

10. Firstsource Solutions ltd

NA

11. Fortis Healthcare Ltd.

971.61

12. Geojit Financial Services Ltd.

137.37

13. GMR Infrastructure Ltd. 

NA

14. Ion Exchange (India) Ltd

NA

15. Jubilant Pharmova Ltd

585.35

16. Karur Vysya Bank Ltd

165.82

17. Lupin Ltd.

NA

18. Man InfraConstruction Ltd

48.52

19. Multi Commodity Exchange of India Ltd

NA

20. NCC Ltd

562.22

21. Orient Cement Ltd

41.10

22. Prakash Industries Ltd.

13.64

23. Prakash Pipes Ltd. 

4.22

24. Prozone Intu Properties Ltd.

10.91

25. Rallis India Ltd.

523.77

26. The Federal Bank Ltd.

679.01

27. The Mandhana Retail Ventures Ltd.

2.79

28. Titan Company Ltd.

11,167.65

29. TV18 Broadcast Ltd. 

162.62

30. VIP Industries Ltd

NA

31. Autoline Industries ltd.

10.04

32. Dishman Carbogen Amcis Ltd.

107.69

33. The Indian Hotels Company Ltd.

511.97

34. Tata Motors Ltd.

1,804.57

35. VA Tech Wabag Ltd. 

155.33

36. Indiabulls Real Estate Ltd. 

79.70

37. TARC Ltd.

23.88

38. Tata Communications Ltd.

437.45

39. Tata Motors Ltd - DVR Ordinary

NA

40. Wockhardt Ltd

109.67

41. Jubilant Ingrevia Ltd.

525.24

42. Nazara Technologies Ltd.

886.16

43. Indiabulls Housing Finance Ltd.

109.48

44. Steel Authority of India Ltd.

798.58

45. Canara Bank

599.53

46. National Aluminium Company Ltd.

255.03

Conclusion

Mr Rakesh Jhunjhunwala has proved that to become successful in anything, you must set your heart on it. He had shown the world that you could start at the lowest level and climb to the highest peak if you are ready to work hard. Starting with a meagre investment of Rs 5000, he has turned it into a million-dollar asset.

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