By Suhas ReddyWhere do investors get their investing cues from? In the Indian market, investors track Superstar investors for investment ideas, and are quick to identify the buying and selling patterns of these big bulls.
Earlier, we looked at the stocks bought by Superstars in Q2FY23. Here, we focus on their key sells. We take a look at recent stake sales by ace investors like Rakesh Jhunjhunwala (now managed by RARE Enterprises), Ashish Kacholia, Sunil Singhania and Dolly Khanna in Q2FY23.
Rakesh Jhunjhunwala’s portfolio cuts stake below 1% in three companies
Rakesh Jhunjhunwala's portfolio, which is currently managed by Rare Enterprises, sold stakes in 14 companies in Q2FY23. The portfolio’s two biggest sells include Bilcare and Autoline Industries, where it cut its stakes by over 7.5% and 3.5% respectively.
Bilcare is a small-cap healthcare supplies company, for which the corporate insolvency resolution process began on November 11. The stock fell by 36.3% from last Friday (November 11) till Wednesday. Autoline Industries is a small-cap auto parts & equipment company that rose 63.6% in Q2, and its profit in the same period jumped nearly 9X YoY. Yet RJ’s portfolio pared its stake below 1% in the company. It also took its stake in IndiaBulls Housing Finance below 1% from 1.2%.
The big bull’s portfolio reduced its holdings in Jubilant Ingrevia and Federal Bank by 1.6% and 1% to bring down its stakes to 3.2% and 2.6% respectively.
The portfolio cut 0.5% in Canara Bank, D B Realty and Rallis India each, reducing these holdings to 1.5%, 1.5% and 9.4% respectively. It also cut 0.3% from its stake in Anant Raj to 3.1%.
The Rare Enterprises managed portfolio also reduced its stake in Karur Vysya Bank, Edelweiss Financial Services and Star Health & Allied Insurance by 0.1% each to take the holdings to 4.4%, 1.5% and 17.4% respectively. It also sold minor stakes in Nazara Technologies and Crisil.
Sunil Singhania sells 1% stake in industrial machinery company The Anup Engineering
In Q2FY23, Sunil Singhania’s Abakkus Fund pared its stake in financial services company CMS Info Systems, defence company Paras Defence and Space Technologies, plastic products and electric appliances manufacturer Surya Roshni, movies and entertainment company Saregama India, and packaging company Polyplex Corp. Its stake is now below 1% in these companies.
Abakkus sold a 1.5% stake in Mastek during the quarter and now holds 2.8% in the company. Mastek’s share price fell by 18.3% to Rs 1,741.3 on September 30, 2022, from Rs 2,130 on July 1, 2022. The fund also sold a 1% stake in The Anup Engineering and now holds only 4.8%. In Q2FY23, Anup Engineering’s profit fell by 17.9% YoY to Rs 12.9 crore.
Apart from these stocks, the fund also reduced stakes in Route Mobile (now holds 2.7%) and IIFL Securities (now holds 3.2%)
Ashish Kacholia takes his holdings below 1% in several small-cap companies
Ashish Kacholia sold more than 2.4% in Vishnu Chemicals during Q2FY23 and now holds below 1% in the speciality chemicals manufacturer. He also sold most of his holdings in Kwality Pharmaceuticals, VRL Logistics, Mold-Tek Packaging and Mastek. He now holds below 1% in all these companies.
The marquee investor cut his stake in IT consulting and software company Genesys International Corp by 0.3% (now holds 1.7%), in apparels and accessories manufacturer Safari Industries (India) by 0.2% (now holds 2.6%), and in internet and catalogue retailer Creative Newtech by 0.1% (now holds 2.7%).
Kacholia also sold stakes in Vaibhav Global and NIIT; he now holds 1.2% and 2.2% respectively in the companies.
Dolly Khanna goes on a selling spree in Q2FY23
Dolly Khanna sold stakes in 16 companies in Q2FY23, which mostly included agrochemicals, cement, fertilisers and textile companies. Her biggest sell was Chennai Petroleum Corp, where she reduced her stake by 0.7% to 2.6%. The ace investor also cut 0.5% from her holdings in Pondy Oxides & Chemicals and Rama Phosphates to 3.4% and 1.7% respectively.
Khanna took her holdings below 1% in Suryoday Small Finance Bank, RSWM, New Delhi Television and Goa Carbons in Q2FY23.
She pared her stake in KCP by 0.4% to 3% and reduced her stakes in NCL Industries, Sharda Cropchem, Tinna Rubber and Infrastructure and Aries Agro by 0.2% each to 1.3%, 1%, 1.7% and 1.1% respectively. The ace investor also reduced her holdings in Polyplex Corp and Mangalore Chemicals & Fertilisers by 0.1% and sold minor stakes in Manali Petrochemicals and Nitin Spinners.
Vijay Kedia cuts stake in Lykis, a micro-cap company
Vijay Kediasold a 6.6% stake in the micro-cap company Lykis in Q2FY23; he now holds 2.7% in the company. The personal products company’s stock price was Rs 27 on July 1, 2022, which then surged to Rs 55.1 on September 6, 2022. After a sharp rise, the stock price then fell to Rs 41.45 by the end of the September quarter.
Kedia sold a 0.3% stake in Ramco Systems during Q2FY23, bringing down his holding to 1.6%. The company’s profit has consistently reported losses for six consecutive quarters. He also sold a minor stake in Tejas Networks and now holds 2.6%.
Porinju V Veliyath takes his stake below 1% in Cupid
Porinju V Veliyath reduced his stakes in a total of five companies. His biggest sell was in TCM, an agrochemicals company, where he pared his stake by 2.9% to 1.3%. He also took his stake below 1% in Cupid, a personal products manufacturer.
The investor reduced his stakes in RPSG Ventures and Kaya by 0.2% each to 1.6% and 1.4% respectively. He also decreased his holding in Orient Bell by 0.1% to 4.8%.
