Titan Shares tumbled over 7% during the trading session, with intraday lows 1,911 each on the BSE.
Shares fall on BSE 124.80 or 6.06% and settled on 1,935.35 each. At closing price, Titan’s market valuation was 1,71,817.69 crores.
Titan shares remained at this level on the previous day 2,060.15 on the same exchange.
Since the end of Thursday, Titan shares have fallen 124.80 per piece.
As per the shareholding pattern of Titan, Rekha Jhunjhunwala holds 95,40,575 equity shares or 1.07% as on March 31, 2022. During this, Rakesh JhunjhunwalaTitan holds 3,53,10,395 equity shares or 3.98%.
Overall, the couple holds 4,48,50,970 equity shares or 5.05%.
Jhunjhunwala at least lost due to heavy selling of Titan 559.74 crore in a day ( 124.80 X 4,48,50,970 Equity Shares).
As per trendline data, Jhunjhunwala’s cumulative portfolio rated at Titan is 8,678.7 crore.
Rakesh manages his and wife’s portfolio.
Shares of Titan have fallen more than 28% in the past three months. While the shares have fallen by more than 23% in 2022 so far. However, the shares have gained over 13% in one year. Titan shares were at this level on June 17 last year 1,708.1 each on the BSE.
Despite the recent fall in Titan shares, experts are optimistic about the company’s progress.
In their latest research note, ICICI Securities analysts Manoj Menon, Aniket Sethi and Karan Bhuvania have given buy targets on Titan. In their sector-based report dated June 11, analysts said, “We believe that mandatory hallmarking could create a level playing field in the Indian jewelery market, further pushing the formality, on both Titan and Kalyan.” Can keep the purchase.
As for Titan, the trio said, “We have compared the unit economics (FY20) of Tanishq, Kalyan, Joyalukkas and Senco (Table 1). In terms of operating margins, Titan is ahead of other jewelery players (compared to unit economics). The sales of Joyalukkas are very low).”
Comparing companies in Gems & Jewelery segment, analysts said, “Titan is ahead on return metrics (ROCE of 28%; this includes other businesses). Good revenue intensity (Sales/sq.ft. ROCE print of Senco one Comes behind good franchise system. Kalyan has a weak return profile as compared to other players. In terms of inventory days, Titan is the most efficient (131 days; including other businesses) followed by Joyalukkas (144 days), Senco (147) days) and Kalyan (167 days).”
Last month, leaving India at ICICI Direct and Cheragh Sidhva Research Analysts said, Titan has made an exceptional performance in the discretionary sector, with the stock price appreciating ~36% CAGR over the last five years, “We remain structurally positive Has happened. The stock justifies premium valuations as high growth visibility and maintain buying on the stock.”
ICICI Direct duo. target price of 2,725 ie 66x FY24E EPS on Titan.
Also, Centrum has given a buy rating to Titan. Shirish Pardeshi Research Analyst, Consumer, Centrum said, “E Titan’s strategy revolves around serving Millennials to meet their aspirational demand with the launch of new designs and channels, which can pay off in a big way. Market share gains showing further industry formalization. We maintain a positive outlook. And expect a faster recovery and margin gains. The turnaround of the Caratlane/Eyewear divisions and their profitability potential is yet to be priced in. FY22 in mind Keeping this in view, we cut FY23E/FY24E earnings by 15%/10.9% and retained BUY with revised DCF-based TP of Rs 2,817 (69.5x FY24E EPS). Risks: Irrational competition from regional players; Long run in economy correction, thereby reducing the demand for jewelry; raising the price of gold.