Rakesh Jhunjhunwala Portfolio: Tata Group Stock Titan Company Limited popularly known as Rakesh Jhunjhunwala‘s favourite stock is set to turn ex-dividend on Friday. The company has informed stock exchanges by saying that “The Board has recommended a Dividend of Rs 7.50 per Equity Share of Rs 1 each of the Company which shall be paid/dispatched 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 11th July as the record date and hence the stock shall turn ex-dividend today.
Rakesh Jhunjhunwala’s Stake in Titan Company
The Big Bull owns nearly 3,57,10,395 Titan Company shares or 4.02 per cent of total issued-paid up capital of the company. Meanwhile, his wife Rekha Jhunjhunwala owns 95,40,575 shares in Titan copany or 1.07 per cent stake.
Jhunjhunwala on Thursday made over Rs 600 crore in intraday gains on Titan Company notionally, as a business update by the Tata group company, his biggest stock bet, received thumbs up from analysts and Dalal Street investors.
Within a few minutes into trading, shares of Titan were trading 6.86 per cent higher at Rs 2,151.60 a piece. The company commanded an m-cap of just over Rs 1.91 lakh crore compared with an m-cap of Rs 1.79 lakh crore in the previous session.
Titan Q1 Update
Titan said its jewellery segment posted revenue growth of 207 per cent YoY (excluding bullion sales) on a low base, led by strong demand due to 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 recorded a growth of 158 per cent YoY, led by growth across brands and products. The eyewear division posted a sales growth of 176 per cent YoY, led by Titan Eye Plus and trade and distribution channels.
What Do Analysts Say?
Titan’s Q1FY23 business update suggests a robust 3-year consolidated revenue CAGR of 22 per cent, said Emkay Global.
“In our view, a strong Q1 should drive an upgrade to consensus estimates. However, we do not see material changes to our estimates given near-term volatilities due to a recent customs duty increase and higher inflation. We currently have a ‘Buy’ rating on Titan with a target of Rs 2,530,” Emkay Global said.
Motilal Oswal said Titan remained its top pick in the largecap consumption space, with strong earnings growth visibility and compounding by 20 per cent for an elongated period of time.
“In the jewellery industry, which is organising at a rapid pace, Titan is clearly at the vanguard among organised players in leading this growth,” Motilal Oswal said.
“Its runway for growth is long, with a market share of 6 per cent. Unlike other high-growth categories, the competitive intensity from organized and unorganized peers in jewellery is considerably weaker.”
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