on BSE, Titan shares closed above 2,128 114.60 or 5.69%. Shares touch intraday high 2,170.95 each – resulting in a gain of 7.8% so far in the day compared to the previous close.
Titan’s market valuation is 1,88,920.89 crores. In one year, shares of Titan have jumped over 23%, however, growth was pulled back from March this year due to a deep depression in broader markets amid macroeconomic risks. Titan shares hit 52-week high 52-week low of 2,767.55 each and 1,661.85 each.
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%. Rakesh manages the portfolio of both himself and his wife.
Jhunjhunwala’s wealth in Titan rose at least today due to the stellar performance in Titan’s shares. 513.99 Crore (4,48,50,970 X.) 114.60) in the day.
Titan shares rose today on strong sales figures across the business vertical for the quarter ended June 2022 (Q1FY23). Titan posted a 205% jump in first-quarter sales, thanks to a lower base. Further, the company recorded a 3-year CAGR of 20.5% on Q1FY20, the only non-disrupted first quarter in the last 3 years. The performance of all divisions in the quarter was strong.
Meanwhile, Star Health shares rose on BSE. 54.25 or 11.40% and closed at 530.20 per. Shares touched intraday highs 554.20 each – recording a profit of at least 16.4% in a day before making corrections. The market cap of the company is approx. 30,544.83 crores.
Talking about Star Health, unlike Titan, the general insurer has seen a steep decline since its IPO in December last year. Star Health shares hit 52-week high 940 each in December, but saw a downturn on that. However, the shares are improving and analysts expect the company to rise further.
Since its market debut, Star Health shares are down 41.5%.
As on March 31, 2022, Rakesh holds 82,882,958 equity shares or 14.40% in Star Health, while his wife Rekha holds 17,870,977 equity shares or 3.11% in the company. Together, the couple holds approximately 100,753,935 equity shares or 17.5% in Star Health.
Rakesh’s wealth increased due to today’s performance 546.59 crore (100,753,935 X .) 54.25) in Star Health during the day.
Out of the two shares, Rakesh has almost 1,060.58 crore in just one day.
As per Trendline data, as of today, Rakesh’s net worth in Titan is around 9,542 crore, and in Star Health approx. 5,359.1 crores. Both these are the top stocks in Jhunjhunwala’s portfolio.
Data as of 7 July showed that Jhunjhunwala’s total portfolio undervalued 26,484.16 crore. That said, his assets in Titan and Star Health account for half of the total portfolio valuation. Titan accounts for over 36 per cent of Jhunjhunwala’s total portfolio assets, while Star Health accounts for over 20 per cent of the total net worth. Rakesh has 33 stocks publicly held in the exchanges.
Should you buy Titan and Star Health shares?
On Titan’s Q1FY23 update, Shirish Pardeshi, Consumer, Research Analyst, Centrum, said today, “We believe that the postponed weddings due to the Omicron wave in the fourth quarter strengthened the festive as well as festive demand.”
Going forward, the Centrum analyst said, “We expect strong revenue momentum for jewelry to continue in the wake of the upcoming festive season as customers have postponed purchases due to postponed weddings from Q4 onwards. We are looking at geo-political issues.” However, the mandatory hallmarking is picking up momentum and its positive impact will benefit organized players like Titan. We remain positive and expect strong demand conditions across all divisions to drive revenue and margin expansion. We retain BUY with DCF-based TP at Rs 2,817 (69.5x FY24E EPS). Risk – Irrational Completion, High gold prices.”
Anshuman Deb and Ravin Kurva, Research Analysts, ICICI Securities for Star Health said in their note, “We would price this stock 40x (earlier 50x) FY24E EPS of Rs 17.5 (earlier 16.7) with a revised target price of Rs 700 on a 40x basis. We are the factors. GDPI CAGR of 16.5% between FY22-24E, investment leverage of 2.3x in FY24E, combined ratio of 95%, and investment yield of 7% for FY24. Our transformation into multiple increased competition, the latter COVID waves and overall reflect the possibility of an increase in the cost of capital.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.