Titan Company share value fell as low as 2.6 per cent to Rs 1,717.55 apiece in intraday on BSE, soon after the watch-to-jewellery maker released a organization update for the 1st quarter of FY22. The company’s sales have been hit amid the second COVID-19 wave, which led to short-term closures of shops in crucial states. Rakesh Jhunjhunwala’s favourite stock was major BSE Sensex loser in intraday bargains. The stock hit a record higher of Rs 1,800 in the last week of June. The sales recovery of Titan has been steadily enhancing across the enterprises, along with the raise in the retailer operational days.
Titan Company reported income development of 117 per cent (excluding bullion sales) in the Apr-Jun quarter of the existing fiscal, with income contributions of around 50 per cent, 10 per cent and 40 per cent coming from April, May and June months, respectively. In the volume traded terms, 1.44 lakh shares exchanged hands on BSE, and a total of 15.56 lakh units on NSE. The government has also made the hallmarking of gold jewellery mandatory from June 15, 2021, beneath which jewellers will be in a position to sell hallmark certified 14 or 18 or 22 carats of gold jewellery.
Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala, collectively held 4.49 crore shares in Titan Company at the finish of the March 2021 quarter.
In just much less than a year, Titan Company share value has almost doubled from the level of Rs 941 apiece, a year ago. 90 per cent of Titan shops have currently reopened, and footfalls are greater than last year, there are couple of issues more than the influence of the implementation of compulsory hallmarking on Titan’s franchise versus its peers, stated an analyst. The implementation might be phased and time-consuming for most unorganised jewellery retailers. But after completed it will bring them pretty much at par with organised players like Titan Company. “This could impact Titan’s market share in the jewellery business. Titan’s other businesses (watches, eyewear etc) have not been able to scale up meaningfully in terms of contribution to overall revenues,” Tanusree Banerjee, Co-Head of Research, Equitymaster, told TheSpuzz Online.
Titan Company is targeting to achieve market place share in the Jewellery segment due to robust focus on wedding segment, large scope for retailer expansion (40-50 shops every single year), and gold harvest and gold exchange schemes, stated Amarjeet Maurya, AVP – Mid Caps, Angel Broking. He also stated that the shift from unorganized (at present 70 per cent) to organized (at present 30 per cent) in the jewellery segment will advantage branded players like Titan due to robust brand positioning and superior top quality.
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