The Indian stock market is currently witnessing a fascinating masterclass in conviction as the portfolios of the late Rakesh Jhunjhunwala (now managed by Rekha Jhunjhunwala) and veteran investor Radhakishan Damani face a significant turbulence. Despite two of their high-profile holdings crashing by more than 55% from their peak values, these “Big Bulls” have notably refused to dump their shares, sparking intense curiosity among retail investors. Typically, a drop of over 50% triggers a panic sell-off for the average trader, but the steadfastness of India’s most successful investment families suggests a deeper, long-term strategic play. Market data reveals that while stocks like Concord Biotech and BF Utilities have faced severe price erosion due to sector-specific headwinds and high operational costs, the Jhunjhunwala and Damani camps remain focused on the underlying business fundamentals rather than the volatile ticker price.
For the Jhunjhunwala family, the stake in Concord Biotech is a prime example of “value over price.” Even as the stock price crumbled under the weight of higher expenditures related to new facility launches and global regulatory hurdles, the company’s return on capital employed (ROCE) remains nearly double the industry average. Experts believe that the Big Bulls are ignoring the short-term “noise” of the market and betting on the company’s future dominance in the niche injectable segment. Similarly, Radhakishan Damani’s refusal to exit BF Utilities, despite its legal entanglements and massive price correction, highlights a classic “contrarian” approach. Damani often invests in assets that are undervalued by the market due to temporary crises, believing that once the dust settles, the core intrinsic value will lead to a multi-bagger recovery.
This refusal to sell also highlights the different psychological temperament that distinguishes elite investors from the masses. By holding onto stocks during a 55% crash, these legendary investors are demonstrating that wealth in the stock market is built through “time in the market” rather than “timing the market.” They view these price dips not as a permanent loss of capital, but as a period of consolidation. This bold stance serves as a reminder to the broader investing community that the fundamentals of a business—such as cash flow, competitive advantage, and management quality—matter far more than temporary market cycles. While the general sentiment remains cautious, all eyes are now on these two stocks to see if the conviction of the Big Bulls will eventually pay off when the market cycle turns bullish once again.