Shares of gems and jewellery maker Titan Company, a part of Big Bull Rakesh Jhunjhunwala's portfolio declined 3 per cent after the company posted its quarterly business update.
The stock opened 1 per cent lower at Rs 2,517 against the previous close of Rs 2541.25 on BSE. With a market capitalisation of more than Rs 2,20,000 crore, the shares stand higher than 100-day and 200-day moving averages but lower than 5-day, 20-day and 50-day moving averages.
Long-term investors have made big gains by investing in this stock as it has surged over 400 per cent in the last five years and has zoomed around 900 per cent in the last ten years.
Titan informed that it finished the quarter on a satisfactory note despite Q4 FY22 getting disrupted twice - first due to the partial lockdowns caused by the Omicron wave in January and again during the month of March in which consumer sentiments got affected adversely due to a sharp increase, volatility in gold prices and uncertainty due to a fragile geo-political situation.
"The underlying demand continued to be strong across all of its businesses with most segments posting Y-o-Y growth over a very strong Q4 FY21 base. The network expansion and campaigns have continued to progress well in anticipation of an upbeat Q1 FY23 which is expected to be normal after a gap of two years of lockdowns in the same period," the company stated.
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Jewellery division ended the volatile quarter on a flat note over a strong Q4 FY21 base (had a benefit of a large B2B order). "Business saw subdued activity in top cities due to the Omicron wave in Jan'22, a very strong resurgence in Feb 22 and again a drop in customer purchases in Mar'22 on the back of sharp rise in gold prices and sentiment impact due to the external geo-political conflict." Titan said.
The watches and wearables division saw good growth momentum amidst a challenging external environment with sales increasing across all offline channels on the back of the Titan brand. Sales from retail and Large Format Stores (LFS) clocked higher growth followed by Trade. West and North regions saw much higher growth amongst geographies.
Titan said its Eyecare division's growth was led by frames and sunglasses. Network expansion continued in line with ambitious growth plans for the next year.
As per the shareholding pattern available on BSE, Jhunjhunwala and his wife Rekha together held 4,52,50,970 shares, or 5.09 per cent stake, in the company at the end of the December quarter. In the September quarter, Rakesh Jhunjhunwala held 3.57 crore shares, or 4.02 per cent stake, in the firm. His wife Rekha owned 95.40 lakh shares, or 1.07 per cent stake, in the firm.
Titan Company Limited reported a 135 per cent year-on-year rise in its net profit for October-December quarter at Rs 987 crore. Revenue from sale of products and services grew 36 per cent to Rs 9,381 crore, while total income rose 31 per cent to Rs 9,570 crore.