This Rakesh Jhunjhunwala’s favorite stock Can beat Bitcoin?
Jul 16, 2018 | 14:19 PM IST
Jul 16, 2018 | 14:19 PM IST
In case you want to make proper money through making an investment in equities, you may to take a look at an experts way of making an investment. After all, their success can be a great gaining knowledge of story for you to profit from on stock exchanges. And who could be better than Dalal street king, Rakesh Jhunjhunwala? each equity lover is familiar with this name, and it wouldnt wrong to say his investment strategies in relation to equities, are commendable. However, investing in equities is a little like of venture in which, one must always remember, the investor is not pulling the strings the stocks are driven by many things, including even sentiment. therefore, you dont want to make a wrong investment and later regret. One aspect an investor should remember is that, investment in equities are best on a long-time period basis if s/he wants to attain maximum benefits. And if the stock is chosen accurately, it can result in a major success tale and whats better than learning from ace investor Rakesh Jhunjhunwala who has been on this field for a very long term and has turned it into a large success. Jhunjhunwala has been known as the Warren Buffett of Indian stock markets!
Jhunjhunwala 58, is said to be one of the most successful equity buyers in India, as he grew to become his funding of simply $100, while he started trading, into a large $2.9 billion. He belongs to a middle class family and started his first buying and selling on BSE in 1985. since then he has selected trading as a full-time career. With such a lengthy experience, for Jhunjhunwala earning money from stock exchanges is outwardly, like a baby's play. however, it should also be known, that he has mastered the word patience in stock market. that may be a virtue that everybody in stock markets needs lots of.
Among many investment quotes of Jhunjhunwala, one which stands proud goes like this, Invest in companies which have strong management and competitive advantage. This quote is excellent suitable for investors who have invested in Jhunjhunwalas favorite inventory Titan enterprise, as this one is now seen as money making magnet in its sector and exchanges.
In a yrs time, Titan has more than doubled on BSE. Titan has touched a low of Rs 522 per piece on July 27, 2017, and since then has received by 92.72% on BSE by touching a high of Rs 1,006 per piece. this is higher than the 31-scrip and 51-scrip indexes as well, as each Sensex and Nifty 50 have grown among 20% - 22%.
On Friday, Titan completed at Rs 836.50 per piece above 3.42% on BSE. however, during the day, the stock has grown by means of nearly 4%. This has grown with the aid of 57.08% from Rs 534.6 in keeping with piece which stood on the same day of preceding yearr.
On MCX, Titan is at a premium of 8.1% in comparison to other rivals like Tribhovandas Bhimji Zaveri (TBZ) which stands at 6.5%, PCJ at 3.9%, Thangamayil at 4.4% and Kalyan at 3.3%.
not best this, Titans marketplace capitalization is at Rs 74,263.31 crore as on July 13, 2018, that's like 2.71 times higher than the entire gems & jewelry stocks on BSE. a total 20 jewelry stocks apart from Titan holds a cumulative market cap of Rs 27,344.05 crore.
Titans peers pc Jewellers has a market cap of Rs 4,731.64 crore, while Thangamayil at Rs 577.94 crore and TBZ at Rs 567.54 crore. apart from Titan, only Rajesh Exports has a market cap of Rs 16,806.20 crore.
Consistent with HDFC Securities, Titans valuation is seen upto $eleven,711 million (that's approx Rs 8,02,164.eighty five crore) in advance. now not simplest this, Titan is the only home business enterprise with a view to tackle worldwide gamers like Tiffany, LUK Fook, Signet Jewellers and Chow Tai Fook Jeweller.
Do you want to know a fun truth? Titan is a better success story than even Bitcoin cryptocurrency.
each coming day Bitcoin is losing its golden touch inside the cryptocurrency marketplace. due to Bitcoin, traders have misplaced religion in other digital cash like Ethereum, Litecoin, Bitcoin cash and Ripple. Bitcoin currently trades at $6,298.60 with a marketplace cap of $108.02 billion. apparently, Bitcoin is just few billions away from falling under $100 billion market cap.
The downfall of Bitcoin was as large and quick as its upward push - it grew 141,825.71% or 1419.26 times by December 17, 2017 - to clock $19,869.60-mark not so long ago. If we compare to current market price of $6,298.60 with $14 in the starting of 2013, this coin has now grown by 44,890% until now.
But Titan has proven some promising increase. Titan has a lowest market price of Rs 1.37 within the month of October 2001, since then the company has grown by a behemoth 73330.65% or 734.30 times currently in a span of 18 years.
Titan will grow furthermore not like Bitcoin whose trajectory no one can predict effectively, but considering that government after government is banning it, the direction is downward. Also one excellent comparison is marketplace cap, Bitcoin now is close to $108 billion, while Titan is seen to bag market valuation of over $126 billion if we have a look at HDFC's prediction.
Earlier, ICICI Securities on Titan states, "We believe Titans growth story will remain multi-pronged and drawn over a longer time frame. Consequently, we shift to a DCF based valuation to arrive at a target price of Rs 1090 with a BUY recommendation on the stock. On a DCF basis, we assume revenue CAGR of 20% over FY17-23E and 11% over FY24E-30E with 10.8% WACC and 4% terminal growth rate."
Rohit Harlikar and Jay Gandhi analysts at HDFC Securities said, "Indias jewellery story is mostly about the SUPERPACK (17 organized jewellery chains that will grab ~42% share in the next five years). The SUPERPACK has significant diversity in current operations as well as growth strategies."
The duo Adds, "Titan looks like the big winner right now, but DEFENCE will be the operating word as SUPERPACK closes in. Business gains are priced in."
Titan remains a distant leader in terms of national presence, able contenders are visible across all zones.
As in line with HDFC Securities, given the modern design/capital arbitrage, we agree with Titan will have a head-start on the customer acquisition race over FY18- 21E. Co is confident on achieving its aspired 25% jewelry sales growth in FY19E. however, peer gaps will reduce post FY21 (segment 2 of our medium time period view) and Titan will find itself protecting turf against very sturdy and able challengers throughout India.
Jhunjhunwal's largest preserving is seen at Titan which is well worth extra than $900 million. He currently holds 8.46% in the organisation. considering this you might need to element approximately Titan as an funding option very critically.
Niveza Editorial Desk :
We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.