Big Bull Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have big investments in Titan Company Limited. Today, Titan is trading at ₹2,454.55 apiece, up 3.51%.
As per Titan Company’s shareholding for the December quarter, Rakesh Jhunjhunwala holds 3,57,10,395 shares and Rekha Jhunjhunwala holds 95,40,575 shares of the company. Therefore, the Jhunjhunwalas have a 5.09% stake or 4,52,50,970 shares of this consumer discretionary company.
Ace Investor Rakesh Jhunjhunwala has increased his stake in the company for the past two quarters and he earned over 4000 crores from the stock at the beginning of this year.
Titan Company Limited was incorporated in the year 1984 and it is a large-cap company that operates in the gems and jewellery segment. It gets a major portion of its revenue from jewellery, watches, gold, traded goods, eyewear, and precious and semi-precious stones.
For the October to December quarter ended 31 December 2021, the company reported a consolidated total income of ₹ 10094.00 crores, up 31.79% from the same quarter last year. It reported a net profit after tax of ₹1012.00 crores in the December quarter.
As per estimates by Philip Capital, Titan Company Limited is likely to see an upside of 18%. On 4th March 2022, the stock was trading at the same level that it is trading now, and the brokerage has maintained a ‘buy’ rating on Titan Company with a target of ₹3000 per share. It points out that the company’s margins will remain high for the next two quarters due to the following reasons:
- Studded jewellery contributes about 30% of Titan’s jewellery sales and diamond prices are up by 40%. The entire benefit of higher prices will flow to its bottom line.
- The government has relaxed Covid restrictions and marriages, festivals and social functions are in full swing.
- If the geopolitical tensions between Russia and Ukraine continue for a while, there will be a huge demand for gold coins and bars.
- Mandatory implementation of hallmarking norms from December 1, 2021 will bring formalization.
The brokerage expects a strong performance from Titan and believes that even if the markets are correct, there will be a limited downside to the stock.
ICICI Direct has given a buy call on Titan company Limited with a target price of ₹2860 and a time period of 3 months.
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