Jhunjhunwala family increases stake in this smallcap

Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala, increased stake in Geojit Financial Services in the quarter ended December.

In accordance with the latest shareholding pattern of the stock on the BSE website, the investor held 2,00,37,500 equity shares or 8.38% stake. In the September quarter, the investment under Rakesh Jhunjhunwala had been to the tune of 1,80,37,500 or 7.54% stake.

Rekha Jhunjhunwala, as per the latest corporate shareholdings filed, publicly holds 19 stocks with an estimated net worth of over Rs. 11,866.8 crore. Some of the top holdings of the investor include Aptech, Crisil, Indian Hotels and Jubilant Pharmova and Fortis.

In the December quarter, the investor also raised a stake in Canara Bank.

Geojit Financial Services is currently trading at a discount of 43% from its 52-week high. The stock’s 52-week high and low prices are Rs 43.35 and Rs 87.4 per share, respectively.

The company’s stock in the last 1-year has plunged 39%, while its 3-year return has been 73%.

FIIs or foreign institutional investors have increased their holding in the stock from 1.99% in the September quarter to 2.08% in the third quarter.

The company is a low-debt entity, effectively using its capital to generate profit. Its RoCE has improved in the last 2 years.

In the September quarter, its net sales were at Rs 112.2 crore, down 12% from Rs 127.08 crore during the same quarter a year ago. Also, the net profit declined to Rs 23.09 crore down 41.58% from Rs. 39.52 crore in September 2021.

With a m-cap of Rs 1,191 crore, the company offers retail financial services, including online share trading and equity.

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