In life, we come across several moments such as good, bad and ugly. Life is a series of choices and the little decisions that we make determine our destiny. There are many different ways to become rich. If you are born rich, then it is the easiest way to become rich.
If you marry a rich person, you would reap the benefits and become rich overnight. These cases don’t really impress or inspire anyone but the rags and riches stories do. By virtue of hard work, willpower, long-term vision, one can become rich.
Rakesh Jhunjhunwala’s story is one that needs to be told to inspire the young entrepreneurs of India. Do you know how much did Rakesh earned in 6 years? He was able to earn a whopping Rs 284 crores by investing in the Escorts Group, the leading tractor manufacturers. In 2013, Rakesh Jhunjhunwala purchased 50 lakh shares of the company for the very first time in his life.
By December 2015, he had a staggering total of 1.12 crore shares. He took a next decisive step as he sold 12 lakh shares and kept 1 crore shares of the company in the December 2017 quarter. Today, his overall stock in the company is worth Rs 648 crore.
In September 2013, the stock was trading around 80 rupees, hence the 50 lakh shares would have been estimated at around Rs 40 crore. At the current value of Rs 648, the 50 lakh shares purchased in the year 2013 is now estimated to be around Rs 324 crore and thereby, giving him an incredible profit of Rs 284 crore.
Nonetheless, the economic slowdown did cause damage to his auto industry in 2019. The stock price of the Escorts group saw a decline of 8.2 per cent due to this. But for the second quarter (Q2), Escorts had reported a marginal rise in its September quarter (Q2FY20) net profit at Rs 101.5 crore against Rs 101.2 crore in the same quarter 2018.
Escorts has now reported a 1.6 per cent rise in tractor sales at 13,353 units in October. As far as the Domestic tractor is concerned, the sales last month were at 13,034 units as compared to that of 12,867 in October 2018, an increase of 1.3 per cent, it said.
Exports remained at 319 units as compared to 273 in the same month of 2018, a growth of 16.8 per cent, the company added in a statement.
Through hard work, grit, determination and reputation for being dedicated to his internal moral compass, he was able to build a business empire.