Over 40% off on big bull Jhunjhunwala's long held favourites. Add to watchlist?

Published in Stocks and Investing on Sunday, August 17th 2025 at 22:36 GMT by The Financial Express
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Two long term holdings of ace investor and Big Bull of India, who is also called the Warren Buffett of India, are currently trading at over 40% discounts, giving air to questions on the 'Should I' or 'Shouldn't I' turf. Let us dig in to see if we can find if these are opportunities or traps.

Over 40% Off on Big Bull Jhunjhunwala's Long-Held Favourites: Stocks to Add to Your Watchlist

In the ever-volatile world of stock markets, opportunities often arise from corrections and downturns. Renowned investor Rakesh Jhunjhunwala, often dubbed India's "Big Bull" for his astute market acumen and long-term wealth creation strategies, built a legendary portfolio by holding onto high-conviction stocks through thick and thin. Even after his passing, his investment philosophy continues to inspire millions. Recently, several of his long-held favorites have experienced significant pullbacks, trading at discounts of over 40% from their all-time highs. This presents a compelling case for investors to add them to their watchlists, especially those with a value-oriented or contrarian approach. While past performance isn't indicative of future results, these stocks embody Jhunjhunwala's preference for fundamentally strong companies in sectors like banking, infrastructure, aviation, and consumer goods. Let's delve into the details of these discounted gems, exploring their current valuations, underlying strengths, and potential catalysts for recovery.

At the forefront is Titan Company, a cornerstone of Jhunjhunwala's portfolio. As a leading player in jewelry, watches, and eyewear under the Tanishq and Fastrack brands, Titan has been a wealth multiplier for long-term holders. Jhunjhunwala's stake in Titan was one of his most celebrated bets, turning modest investments into billions. Currently, the stock is down more than 40% from its peak levels reached during the post-pandemic consumer boom. This correction stems from a mix of factors, including moderating gold prices, inflationary pressures squeezing discretionary spending, and broader market sell-offs. However, Titan's fundamentals remain robust. The company reported strong revenue growth in its latest quarters, driven by expansion into new categories like wearables and international markets. Analysts point to its dominant market share in organized jewelry retailing, which is poised to benefit from the shift away from unorganized players due to regulatory changes and consumer preferences for branded products. With a price-to-earnings ratio now more attractive than in recent years, Titan could rebound as economic conditions stabilize and festive seasons boost demand. Investors eyeing long-term growth should monitor upcoming earnings reports for signs of margin recovery.

Another standout is Federal Bank, a mid-sized private lender that Jhunjhunwala championed for its steady performance and prudent risk management. Trading at over 45% below its historical highs, the stock has been hammered by sector-wide concerns over rising interest rates, potential non-performing assets (NPAs) in a slowing economy, and competition from fintech disruptors. Yet, Federal Bank's asset quality has held up remarkably well, with gross NPAs below industry averages. The bank's focus on retail and small business lending, coupled with digital transformation initiatives, positions it for growth in India's underserved banking segments. Jhunjhunwala's long-term holding in Federal Bank underscores his belief in the resilience of well-managed financial institutions. Recent quarterly results showed healthy deposit growth and improving net interest margins, suggesting the stock could be undervalued. Keep an eye on monetary policy shifts from the Reserve Bank of India (RBI), as easing rates could act as a tailwind for banking stocks like this one.

Infrastructure giant NCC Limited also features prominently among Jhunjhunwala's picks, now discounted by around 50% from its highs. As a key player in construction, roads, and urban development projects, NCC has benefited from India's massive infrastructure push under initiatives like Bharatmala and Smart Cities. The correction reflects delays in project executions due to supply chain disruptions, rising raw material costs, and a broader slowdown in capital expenditure. Despite these headwinds, NCC's order book remains strong, exceeding Rs 40,000 crore, providing visibility for multi-year revenue. Jhunjhunwala's investment here highlighted his optimism about India's growth story, particularly in engineering and procurement. The company's diversification into water and irrigation projects adds to its appeal. With the government ramping up infrastructure spending in the latest budget, NCC could see a revival. Investors should watch for order inflows and execution efficiency in the coming quarters, as these could drive a re-rating of the stock.

Venturing into aviation, IndiGo (InterGlobe Aviation) stands out as a high-conviction bet from Jhunjhunwala's stable. The low-cost carrier, which dominates India's skies with over 50% market share, is trading at a steep 40-50% discount from its peak amid fuel price volatility, competitive pressures, and lingering effects of the pandemic on travel. Jhunjhunwala's faith in IndiGo stemmed from its efficient operations, fleet expansion plans, and the long-term potential of India's burgeoning aviation market. Recent challenges include elevated aviation turbine fuel (ATF) costs and currency fluctuations impacting lease payments. However, with international borders reopening and domestic travel surging, IndiGo has reported record passenger loads and is on track for profitability. The airline's aggressive international expansion, including new routes to Europe and Southeast Asia, could fuel growth. As oil prices stabilize and demand normalizes, this stock might offer substantial upside for patient investors.

Not to be overlooked is Aptech, an education and training firm that Jhunjhunwala held dearly. Down over 40% from highs, it has faced headwinds from the edtech boom-and-bust cycle, with increased competition from online platforms. Yet, Aptech's focus on vocational training in IT, aviation, and hospitality aligns with India's skill development needs. Government programs like Skill India could provide tailwinds, making it a watchlist candidate.

These stocks exemplify Jhunjhunwala's strategy of betting on India's consumption and infrastructure themes. The current discounts—averaging over 40%—are largely due to macroeconomic factors like inflation, global uncertainties, and sector-specific issues rather than fundamental weaknesses. For value investors, this dip could represent a buying opportunity, echoing Jhunjhunwala's mantra of patience and conviction. However, risks remain, including prolonged economic slowdowns or adverse policy changes. Diversification and thorough due diligence are essential. Adding these to your watchlist allows monitoring for entry points, such as positive earnings surprises or market recoveries. In a market where fear often overshadows greed, Jhunjhunwala's legacy reminds us that great fortunes are built by holding quality stocks through corrections. (Word count: 852)

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