Rakesh Jhunjhunwala Portfolio: Tata Group stock Titan Company Limited, popularly known as Rakesh Jhunjhunwala’s preferred stock, is set to turn ex-dividend on Friday. The company has informed the stock exchanges saying that “The Board has recommended a dividend of Rs 7.50 on every Re 1 equity share of the company to be paid on or after the seventh day from the conclusion of the 38th Annual General Meeting. Subject to the approval of the shareholders of the Company.” The company has fixed July 11 as the record date and hence the stock will become ex-dividend today.
Rakesh Jhunjhunwala’s Stake in Titan Company
The Big Bull holds approximately 3,57,10,395 shares of Titan Company, or 4.02 percent of the company’s total issued-paid-up capital. Meanwhile, his wife Rekha Jhunjhunwala holds 95,40,575 shares or 1.07 per cent stake in Titan Copani.
Jhunjhunwala on Thursday posted over Rs 600 crore in intraday gains on Titan Company, his biggest stock bet, as a business update by the Tata group company received a thumbs up from analysts and Dalal Street investors.
Within minutes of trading, shares of Titan were trading 6.86 per cent higher at Rs 2,151.60 per piece. The company ordered an m-cap of just Rs 1.91 lakh crore as compared to an m-cap of Rs 1.79 lakh crore in the previous session.
Titan Q1 Update
Titan said its jewelery segment posted a revenue growth of 207 per cent year-on-year on a low-yield basis due to strong demand on account of Akshaya Tritiya in May. Titan added a total of 19 new stores: six Tanishq stores, 12 Mia stores in India and a new Tanishq store in Dubai.
The watch division posted 158 percent year-on-year growth, led by a variety of brands and products. The eyewear division, led by Titan Eye Plus and business and distribution channels, posted 176 per cent year-on-year sales growth.
What do analysts say?
Emkay Global said Titan’s Q1FY23 business update suggests a strong CAGR of 22 per cent in 3-year consolidated revenue.
“In our view, a strong Q1 should upgrade the consensus estimates. However, given the near-term volatility due to recent customs duty hikes and high inflation, we do not see material changes to our projections at present. We have a ‘Buy’ rating on Titan in India with a target of Rs 2,530,” said Emkay Global.
Motilal Oswal said Titan continues to be the leader in largecap consumption segment, with strong earnings growth visibility and 20 per cent compounding over the long term.
Motilal Oswal said, “In the jewelery industry, which is organizing at a rapid pace, Titan is clearly at the forefront of organized players leading this growth.”
“It has a long growth runway, with a market share of 6 per cent. Unlike other high-growth categories, the competitive intensity of organized and unorganized peers in jewellery is quite weak.
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