Rakesh Jhunjhunwala favorite stock top Sensex loser today, Titan share price falls 2.6% on Q1 biz update

Rakesh Jhunjhunwala’s favourite inventory was high BSE Sensex loser in intraday offers.

Titan Company share value fell as little as 2.6 per cent to Rs 1,717.55 apiece in intraday on BSE, after the watch-to-jewellery maker launched a enterprise replace for the primary quarter of FY22. The corporate’s gross sales had been hit amid the second COVID-19 wave, which led to non permanent closures of shops in key states. Rakesh Jhunjhunwala’s favourite inventory was high BSE Sensex loser in intraday offers. The inventory hit a document excessive of Rs 1,800 within the final week of June. The gross sales restoration of Titan has been step by step enhancing throughout the companies, together with the rise within the retailer operational days.

Titan Firm reported income development of 117 per cent (excluding bullion gross sales) within the Apr-Jun quarter of the present fiscal, with income contributions of roughly 50 per cent, 10 per cent and 40 per cent coming from April, Could and June months, respectively. Within the quantity traded phrases, 1.44 lakh shares exchanged fingers on BSE, and a complete of 15.56 lakh models on NSE. The federal government has additionally made the hallmarking of gold jewelry necessary from June 15, 2021, underneath which jewellers will be capable to promote hallmark licensed 14 or 18 or 22 carats of gold jewelry.

Rakesh Jhunjhunwala and his spouse Rekha Jhunjhunwala, collectively held 4.49 crore shares in Titan Firm on the finish of the March 2021 quarter.

In simply lower than a yr, Titan Firm share value has almost doubled from the extent of Rs 941 apiece, a yr in the past. 90 per cent of Titan shops have already reopened, and footfalls are greater than final yr, there are few considerations over the influence of the implementation of obligatory hallmarking on Titan’s franchise versus its friends, stated an analyst. The implementation could also be phased and time-consuming for many unorganised jewelry retailers. However as soon as finished it can carry them nearly at par with organised gamers like Titan Firm. “This might influence Titan’s market share within the jewelry enterprise. Titan’s different companies (watches, eyewear and so forth) haven’t been in a position to scale up meaningfully when it comes to contribution to total revenues,” Tanusree Banerjee, Co-Head of Analysis, Equitymaster, instructed Monetary Categorical On-line.

Titan Firm is focusing on to achieve market share within the Jewelry phase resulting from robust concentrate on marriage ceremony phase, large scope for retailer growth (40-50 shops yearly), and gold harvest and gold alternate schemes, stated Amarjeet Maurya, AVP – Mid Caps, Angel Broking. He additionally stated that the shift from unorganized (at present 70 per cent) to organized (at present 30 per cent) within the jewelry phase will profit branded gamers like Titan resulting from robust model positioning and superior high quality.

(The inventory suggestions on this story are by the respective analysis analysts and brokerage companies. Monetary Categorical On-line doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and laws. Please seek the advice of your funding advisor earlier than investing.)