Jhunjhunwala Loses Rs 800 Crore Within Minutes as Titan Shares Tank 5%
Titan’s m-cap fell below the Rs 3 lakh crore-mark to Rs 2,98,815 crore on Monday morning from Rs 3,13,868 crore on Friday, dragging Jhunjhunwala’s notional investment value to Rs 15,986 crore, down Rs 805 crore.
Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, lost over Rs 800 crore in notional value on her investments in Titan Company, as the stock fell nearly 5 per cent in Monday’s trade following the Q4 miss.
Jhunjhunwala held 5.35 per cent stake in the Tata group firm as on March 31, 2024. Her stake in Titan was worth Rs 16,792 crore at Titan’s closing price on Friday. Titan’s m-cap fell below the Rs 3 lakh crore-mark to Rs 2,98,815 crore on Monday morning from Rs 3,13,868 crore on Friday, dragging Jhunjhunwala’s notional investment value to Rs 15,986 crore, down Rs 805 crore.
Titan shares fell 5.18 per cent to hit a low of Rs 3,352.25 on BSE. The jewellery maker reported a 7 per cent rise in standalone net profit at Rs 786 crore in Q4 from Rs 734 crore in the same quarter last year. Revenue for the quarter was up 17 per cent at Rs 10,047 crore.
Titan Company’s Q4FY2024 performance was affected by lower-than-expected Ebitda margins at 9.5 per cent, resulting in lower Ebitda growth of 9 per cent. Sharekhan said intense competition in the weak demand environment led to dip in the margins of jewellery business due to higher consumer offers.
Titan Company is targeting aggressive growth in the jewellery business but the EBIT margin of the business is likely to remain weak in the near term and improve in H2FY2025, Sharekhan said which suggested a revised target of Rs 3,990 on the stock.
Antique Stock Broking said volatility in gold prices and heighten competitive intensity would continue to impact Titan’s margins in the near term.
“Post the 4QFY24 performance and factoring near term margin headwinds in the jewelry business, we have cut our EPS estimates by 8 per cent in FY25 and 2 per cent in FY26. We remain optimistic about Titan’s long term performance driven by the market share gain in the jewelry business on account of strong brand name and execution, scaling up, and improving profitability of other brands,” it said.
Antique has suggested ‘BUY’ on Titan with a revised target price of Rs 4,017 against Rs 4,100 earlier.
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