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Rakesh Jhunjhunwala Loses Approximately 560 cr in a Single day in this Tata Stock

Rakesh Jhunjhunwala, dubbed the “Warren Buffett of India,” saw some losses in his portfolio on Friday, particularly in his most valuable stock.

Titan Company, which is backed by the Tata Group and is a leader in the gems and jewellery market, is the big bull’s largest investment in terms of value.

Titan’s stock was in the red, and Jhunjhunwala lost approximately 560 crore in a single day as a result of the stock’s decline.

Titan’s stock plummeted by more than 7% during the trading session, hitting an intraday low of 1,911 per share on the BSE.

On the BSE, the shares fell by 124.80 points, or 6.06 percent, to 1,935.35 per share. Titan’s market value was 1,71,817.69 crore at the closing price.

Titan shares were trading at 2,060.15 apiece on the same exchange the day before.

Titan shares have dropped by 124.80 per share from Thursday’s close.

According to Titan’s shareholding structure, Rekha Jhunjhunwala owns 95,40,575 equity shares, or 1.07 percent, as of March 31, 2022. Meanwhile, Rakesh Jhunjhunwala owns 3,53,10,395 equity shares in Titan, or 3.98 percent of the company.

The pair owns a total of 4,48,50,970 equity shares, or 5.05 percent of the company.

Jhunjhunwala lost at least 559.74 crore in a single day (124.80 X 4,48,50,970 equity shares) as a result of Titan’s sharp selloff.

According to Trendlyne data, Jhunjhunwala’s Titan portfolio is worth $8,678.7 crore.

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Rakesh is in Charge of his And his wife’s Investments

Titan’s stock has dropped by more than 28% in the last three months. While the stock has plummeted more than 23% so far in 2022. The shares, on the other hand, have gained more than 13% in a year. Titan shares were trading at 1,708.1 per share on the BSE on June 17 of last year.

Despite the recent drop in Titan stock, analysts remain positive about the company’s future prospects.

ICICI Securities analysts Manoj Menon, Aniket Sethi, and Karan Bhuwania have set a buy target on Titan in their new research note.

The analysts stated in their sector-based research dated June 11 that “We feel that obligatory hallmarking will level the playing field in the Indian jewellery market, resulting in further formalisation, and we will keep our BUY recommendation on Titan and Kalyan.

Titan, according to the trio, “Tanishq, Kalyan, Joyalukkas, and Senco’s unit economics (FY20) were compared (Table 1). Titan outperforms other jewellery companies in terms of operating profitability (despite having substantially smaller unit sales than Joyalukkas).”

According to the researchers, when comparing companies in the gems and jewellery sector, “Titan has the upper hand in terms of return measures (RoCE of 28 percent ; this also includes other businesses).

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Given the high revenue intensity (sales/sq. ft.), Joyalukkas has a solid RoCE of 21%. Senco’s RoCE print is the result of a strong franchisee system. In comparison to other players, Kalyan has a poor return profile. Titan is the most efficient in terms of inventory days (131; includes other firms), followed by Joyalukkas (144), Senco (147), and Kalyan (167).”

Last month, ICICI Direct Research Analysts Bharat Chhoda and Cheragh Sidhwa said, “Titan has been an exceptional performer in the discretionary space, with stock price appreciating at a 36 percent CAGR in the last five years,” adding, “We continue to be structurally positive on the stock as high growth visibility justifies premium valuations and maintain a BUY on the stock.” “stock,” he says.

Titan has a target price of $2,725, or 66 times FY24E EPS, according to the ICICI Direct pair

Titan has also been granted a buy recommendation by Centrum. According to Shirish Pardeshi, Consumer Research Analyst at Centrum, “e Titan’s approach of addressing millennials and matching their aspirational desire with new designs and platforms could pay off handsomely. Market share gains are indicating that the sector is becoming more formalised. We remain optimistic and anticipate a speedier rebound and increased margins.

The Caratlane/eyewear segments’ comeback and profitability prospects have yet to be factored in. In light of FY22, we decrease FY23E/FY24E earnings by 15%/10.9 percent and maintain our BUY recommendation, with a revised DCF-based TP of Rs2,817 (implying 69.5x FY24E EPS). Risks include unreasonable rivalry from regional players, a prolonged economic recovery that reduces demand for jewellery, and rising gold prices.”

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