D. Muthukrishnan, a renowned value investor, has announced his decision to exit HDFC Life and ITC, and invest the freed-up money in Bajaj Finance, Titan and United Spirits.

What Happened: In a detailed Twitter post on Friday, Muthukrishnan revealed his new investment strategy. He stated that he had held HDFC Life since its post-IPO phase, but now believes it may not create much value in the future. He also mentioned that he would be completely exiting ITC, a move influenced by a detailed portfolio analysis.

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He further added that the proceeds from ITC would be deployed in Bajaj Finance, while HDFC Life’s proceeds would be invested in Titan and United Spirits.

Muthukrishnan expects his average future holding period to be around 5 years, and plans to hold the following five stocks for the next few years: Astral, Bajaj Finance, Havells, Titan, and United Spirits.

Why It Matters: This decision comes in the wake of ITC’s disappointing performance, with a 10% slump in its net profit for the quarter ended March 2024, as reported by Benzinga India earlier. Despite a slight increase in revenue, the figures fell short of street estimates.

On the other hand, HDFC Life posted a 14% growth in its consolidated net profit for the quarter ending March 2024, surpassing market estimates, last month. However, the share price dipped, as the company registered declines in key life-insurance segment metrics such as annualised premium equivalent (APE) and Value of New Business (VNB).

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