Rakesh Jhunjhunwala gained a staggering Rs 913 crore on his favourite stock Titan Company Ltd in the initial hour of trade on Thursday. The Tata Group business soared 10% to hit the upper circuit and a new 52-week higher of Rs 2,361 per share as investors reacted to the positive organization update supplied by the business for the July-September period. Titan was the major gainer on Sensex on Thursday morning with a stellar efficiency on the bourses. Big Bull Rakesh Jhunjhunwala has been a fan of Titan for ages now and has continued to hold the stock in his portfolio for more than a decade.
Big Bull’s enormous gains
Currently, the significant bulls personal 4.26 crore equity shares of Titan Company ltd along with his wife Rekha Jhunjhunwala. The couple jointly holds a 4.81% stake in the business, as per information obtainable on the BSE site. Titan share price tag settled at Rs 2,146.80 per share on Wednesday afternoon, exactly where the worth of Rakesh Jhunjhunwala’s investment in the firm stood at Rs 9,156 crore. As the stock price tag soared larger on Thursday morning to attain a new higher of Rs 2,353 per share, the worth of significant bull’s investment in the business reached Rs 10,069 crore. This translated to a whopping Rs 879 crore.
In the quarterly organization update, Titan informed investors that “the Company witnessed strong recovery in demand after the second wave across its consumer businesses with sales moving
swiftly above or close to pre-pandemic levels in most of the divisions”. Titan stated that the jewellery organization saw 78% development when compared to the year-ago period when the watches and wearables organization saw 73% development. Titan added that it other organization saw a enormous 121% year-on-year development.
Analysts stay bullish
“Titan has been an exceptional performer in the discretionary space with stock price appreciating at 40% CAGR in last five years. We continue to remain structurally positive and maintain ‘buy’ rating,” stated ICICI Direct in a report. The brokerage firm has a target price tag of Rs 2,550 per share, which could see the stock rally an additional 8% from today’s higher. “Robust performance in challenging times reaffirms our thesis of long term market share gains for Titan. Softening of gold prices coupled with strong festive and wedding season are expected to accelerate the growth trajectory,” they added.
Analysts at Motilal Oswal stated that Titan’s efficiency is driven by steady gold costs more than the previous couple of months, pent-up demand, continued tailwinds in favor of organized players, robust customer sentiment, and sophisticated wedding purchases. They added that margin would be impacted in the July-September quarter due to the reduce contribution of studded jewellery. However, the robust topline development would nevertheless drive sharp EBITDA development. “The structural investment case for Titan remains extremely strong. We maintain our ‘Buy’ rating, with a target price of Rs 2,460 per share at 65x Dec’23E EPS,” they stated.