Titan shares: Jhunjhunwala takes Rs 900 crore hit within minutes as stock tanks 6%

Titan Company share price: Rekha Jhunjhunwala, who owned 5.15 per cent stake in Titan Company Ltd as per latest shareholding pattern, took a Rs 900-crore notional hit within first few minutes of Tuesday's trade,  as the Tata group firm's June quarter business update disappointed stock investors. 

Jhunjhunwala's stake in Titan was worth Rs 15,989 crore on Monday. The stock fell 5.52 per cent to hit a low of Rs 3,464.40 today, with Titan commanding an m-cap of Rs 3,07,618 crore. At this level, Jhunjhunwala's stake in Titan fell below Rs 16,000 crore (at Rs 15,842 crore), falling Rs 923 crore over the previous session.

"Despite a low base (heatwaves/elections) and significant gold price inflation, growth in Q1 has moderated against prevailing trends of 15-20 per cent SSG. Despite network expansion, buyer growth is flat across both Tanishq and Caratlane, likely impacted by the significant gold price inflation, expansion of existing players, and entry of new players (Indriya) in select pockets," Emkay Global said. 

With low footfalls at stores, the high-margin studded sales (low double-digits) are also under pressure which otherwise see better traction in periods of rise in gold price, it noted.

"While there have been periods of strong rebound in the past, expectations of a recovery now need to be weighed against a strong base, which had a big customs duty-cut related pick-up in Q2/Q3FY25," Emkay said while suggesting a target of Rs Rs 3,350 on the stock.

JM Financial expects the company's standalone revenue to grow 18 per cent YoY in Q1, led by 18 per cent YoY growth in jewellery business (ex-bullion). It expects jewellery EBIT margin of 11 per cent (ex-bullion sales; 20 bps down YoY. It estimated growth in standalone Ebitda and PAT at 20 per cent and 19 per cent, respectively. 

MOFSL retained 'Buy' with a target price of Rs 4,250 on the Tata group firm. The Tata group firm's domestic jewellery revenue grew 18 per cent YoY (ex-bullion) against an estimate of 22 per cent YoY, despite gold price volatility affecting consumer sentiment. Akshaya Tritiya witnessed strong traction; however, rising gold prices from May to mid-June led to softened customer purchases, it said.

"Like-for-like (LFL) domestic growth for Tanishq, Mia, and Zoya (TMZ) remained in low double digits, driven by ticket size growth across formats," MOFSL said.

The company added 19 net new stores in India: three in Tanishq, seven in Mia, and nine in CaratLane. The domestic watches business grew 23 per cent YoY, led by strong analog performance in both volume and value. Eyecare division grew 12 per cent YoY.