Rakesh Jhunjhunwala, often referred to as the ‘Warren Buffet of India,’ deeply impacted the Indian stock market with his insightful investments and financial skills. Although he is mainly known for his large-cap investment strategies, his investing strategy also included finding small, undervalued companies poised for remarkable growth.
In this blog, we will discuss Jhunjhunwala’s penny stocks, which are low-priced stocks he has invested in based on his value investing principles.
Ah, penny stocks – the tiny treasures of the stock market that sometimes turn into gold mines! If you’ve been wondering which penny stocks caught the attention of India’s most famous investor, you’re in the right place Rakesh Jhunjhunwala, often called India’s Warren Buffett or the “Big Bull” of Dalal Street, had quite a few interesting penny stock picks in his impressive portfolio.
Even though the legendary investor passed away in 2022, his investment legacy continues through his associates and his wife Rekha Jhunjhunwala, who now manages the extensive portfolio worth over ₹54,524 crores as of 2025. Let’s dive into the penny stocks that were part of the Big Bull’s investment strategy!
What Are Penny Stocks in Rakesh Jhunjhunwala’s Portfolio?
Before we jump into the specific stocks, lemme clarify what we mean by “penny stocks” in the Indian context. These are generally stocks trading at lower prices (often under ₹100) with small market capitalizations. They’re considered high-risk but potentially high-reward investments.
Jhunjhunwala, despite being known for his blue-chip investments like Titan, also had several penny stocks that reflected his eye for undervalued companies with strong growth potential.
Top Penny Stocks in Rakesh Jhunjhunwala’s Portfolio (2025)
According to the latest data from smallcase and other financial platforms, here are the prominent penny stocks in Rakesh Jhunjhunwala’s portfolio as of 2025
1. Bilcare Ltd
- Industry: Life Sciences Tools & Services
- Holding Percentage: 8.50%
- Dividend Yield: 0.80%
This pharmaceutical packaging company caught Jhunjhunwala’s attention due to its niche position in the healthcare sector. Despite being a penny stock, Bilcare offers specialized packaging solutions for the pharmaceutical industry, which aligned with Jhunjhunwala’s interest in healthcare and pharma sectors.
2. Geojit Financial Services Ltd
- Industry: Capital Markets
- Holding Percentage: 7.50% (slightly down from 7.60% in March 2022)
- Dividend Yield: 1.05%
- Holding Value: ₹86.8 crores
As a financial services provider, Geojit was a strategic pick that gave Jhunjhunwala exposure to India’s growing retail investor base. The company offers brokerage, investment, and wealth management services, which positioned it well in India’s expanding financial landscape.
3. NCC Ltd
- Industry: Construction & Engineering
- Holding Percentage: 12.60%
- Holding Value: ₹578.9 crores
- Dividend Yield: 0.67%
This infrastructure and construction company represents one of his larger penny stock holdings. With significant government infrastructure spending in India, NCC Ltd was positioned to benefit from national development projects.
4. Karur Vysya Bank Ltd
- Industry: Banks
- Holding Percentage: 4.50% (increased by 0.30% in FY25)
- Holding Value: ₹280.3 crores
- Dividend Yield: 1.05%
This private sector bank has been in Jhunjhunwala’s portfolio for several years. In FY25, he actually increased his stake, showing continued confidence in this regional banking player.
5. Prozone Intu Properties Ltd
- Industry: Real Estate
- Holding Percentage: 2.10%
- Holding Value: ₹7.5 crores
- Dividend Yield: 1.05%
This real estate developer has been one of the smaller holdings in the Jhunjhunwala portfolio. The stock gave him exposure to India’s retail and commercial property markets.
Rakesh Jhunjhunwala’s Penny Stock Investment Strategy
What made Jhunjhunwala successful in picking penny stocks wasn’t just luck – it was a solid investment philosophy. Here’s what we can learn from his approach:
1. Focus on Management Quality
Jhunjhunwala always emphasized the importance of good management. Even for penny stocks, he looked for companies with honest, competent leaders who had skin in the game. He believed that good management could turn around even struggling companies.
2. Seek Strong Business Models
Even when investing in smaller companies, Jhunjhunwala looked for those with unique business models or competitive advantages. For example, Bilcare’s specialized packaging solutions gave it a niche in the pharmaceutical industry.
3. Valuation Discipline
Jhunjhunwala was known for his strong valuation discipline. He believed there wasn’t a precise buying point for stocks, but there’s definitely a correct moment to sell – particularly when a stock’s P/E ratio reaches unsustainable levels.
As he often said: “Anticipate trends and benefit from it. Traders should go against human nature.”
4. Patience and Long-Term Thinking
Many of Jhunjhunwala’s penny stock investments were held for years. He didn’t panic during market fluctuations and gave his investments time to grow. This patience was crucial for extracting value from penny stocks that often require time to realize their potential.
Recent Changes in Penny Stock Holdings (FY25)
The portfolio management under Rakesh Jhunjhunwala & Associates has seen some adjustments in FY25:
Increased Holdings:
- Karur Vysya Bank Ltd: Stake rose by 0.30%
Reduced Holdings:
- Some portfolio restructuring occurred across the broader portfolio, though specific penny stock reductions weren’t prominently highlighted
Why Did Jhunjhunwala Invest in Penny Stocks?
Despite having billions to invest, why would someone like Jhunjhunwala bother with smaller penny stocks? There are several strategic reasons:
- Growth Potential: Small companies have more room to grow compared to established giants
- Market Inefficiencies: Penny stocks are often overlooked by institutional investors, creating pricing inefficiencies
- Sector Diversification: These stocks allowed him exposure to niche sectors
- Early Mover Advantage: Getting in early on promising companies before they become mainstream
Lessons from Jhunjhunwala’s Penny Stock Investments
If you’re thinking about following in the Big Bull’s footsteps, here are some key takeaways:
Do Your Research
Jhunjhunwala never invested based on tips or rumors. He conducted extensive research on companies before investing, looking at financials, management, and industry trends.
Invest for the Long Term
Most of his successful penny stock picks weren’t overnight successes – they required patience and a long-term outlook.
Diversify Your Risk
Notice how his penny stocks spanned different sectors? That’s intentional risk management through diversification.
Don’t Be Afraid to Take Calculated Risks
Jhunjhunwala wasn’t afraid to invest in less popular or temporarily challenged companies if he believed in their fundamental value.
The Current Status of Jhunjhunwala’s Penny Stock Portfolio
As of 2025, the penny stocks in Rakesh Jhunjhunwala’s portfolio continue to be managed by his associates and wife Rekha Jhunjhunwala. While some positions have been adjusted, many of his core penny stock holdings remain intact, reflecting the long-term investment philosophy he advocated.
The total portfolio managed by Rakesh Jhunjhunwala & Associates now has 26 listed holdings with an estimated net worth of ₹54,524.63 crores, though it experienced a quarter-on-quarter decline of around 5.8% in Q4 FY25 due to broader market fluctuations.
Is It Wise to Follow Jhunjhunwala’s Penny Stock Picks?
While it’s tempting to simply copy the Big Bull’s portfolio, I gotta warn you – investing in penny stocks comes with significant risks:
- Higher volatility
- Limited public information
- Lower liquidity
- Greater manipulation risks
What worked for Jhunjhunwala might not work for everyone. He had decades of experience, a vast network of industry connections, and the financial capacity to withstand losses that retail investors might not have.
Final Thoughts
Rakesh Jhunjhunwala’s penny stock investments reveal his belief in India’s growth story and his ability to spot potential winners across market caps. His approach wasn’t about quick gains but building wealth through patience, research, and conviction.
If you’re interested in penny stocks, Jhunjhunwala’s picks offer interesting case studies, but remember – don’t invest blindly. Do your own research, understand the risks, and perhaps most importantly, adopt the disciplined, patient approach that made the Big Bull so successful.
As Jhunjhunwala himself said, “The stock market is not for a day-trader but for an investor.” Whether you’re looking at penny stocks or blue chips, that wisdom holds true.
FAQs About Rakesh Jhunjhunwala’s Penny Stocks
Q: What was Rakesh Jhunjhunwala’s net worth in 2025?
A: As of June 2025, the portfolio managed by Rakesh Jhunjhunwala & Associates was worth around ₹54,524.63 crores.
Q: Did Rakesh Jhunjhunwala make money from penny stocks?
A: Yes, several of his penny stock picks delivered substantial returns over time, though not all were successful. His diversified approach helped manage risk.
Q: What percentage of Jhunjhunwala’s portfolio was in penny stocks?
A: While exact percentages fluctuated, penny stocks represented a smaller portion of his overall portfolio, which was anchored by large holdings in companies like Titan and Star Health.
Q: Which was Jhunjhunwala’s most successful penny stock?
A: Several of his penny stock investments delivered strong returns, with NCC Ltd being one of his larger penny stock positions with a holding value of ₹578.9 crores.
Q: Is it a good strategy to invest in penny stocks like Jhunjhunwala?
A: It can be part of a diversified strategy for experienced investors who do thorough research. However, penny stocks carry higher risks and aren’t suitable for all investors, especially beginners.
Best Rakesh Jhunjhunwala Penny Stock
| Company | Current Market Price (in ₹) | Market Capitalization (in ₹ Cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
|---|---|---|---|---|
| Singer India Ltd. | 91.6 | 565 | 98.0 | 49.0 |
An overview of the Rakesh Jhunjhunwala penny stock is given below:
Benefits of Investing in Rakesh Jhunjhunwala Stocks
There are multiple reasons why retail and institutional investors find stocks from Rakesh’s portfolio an attractive investment option.
- Credibility: Jhunjhunwala developed the strategy to identify undervalued stocks, making it easier to identify some of the best growth stocks in India. Titan, Lupin, and Crisil are prime examples of such investments. His investments were backed by strong business models and company fundamentals.
- Confidence in market trends: Analysis of Rakesh’s investments gives insights into emerging industries and market trends. His choices included those growing sectors such as financial services, pharma, and technology.
- Long-Term Views: Rakesh’s buy right, sit tight philosophy focuses on the principle of patience for long-term wealth creation, guiding retail investors to pursue a disciplined investment process.