Stock Which Reaped 38% Return For Rakesh Jhunjhunwala Since Last Holi
Mar 26, 2019 | 12:40 PM IST
Mar 26, 2019 | 12:40 PM IST
The festival of colours is here, as citizens across india celebrate Holi on Thursday with family and friends. Holi is also popularly referred as festival of spring and a decent harvest season. Well, the harvest has also been smart in Dalal Street king Rakesh Jhunjhunwalas portfolio on stock exchanges. In fact, all Jhunjhunwala would like is one stock to continue its upward trend, and remaining losses still is pared. By this, we tend to are talking regarding the massive bulls most favorite stock - Titan. This jeweler is among the foremost preferred shares in its sector, due to its key dominance and demand. Nearly 1/2 Jhunjhunwalas wealth comes from Titans gains. what's interesting is to notice that Titan did not disappoint its highest investor Jhunjhunwala, as from last Holi till current one, the stock has jumped by nearly 38th.
Last year, Holi took place between March 01 and March 02. Back then, Titan was trading at nearly Rs 810-level. And on March 20, 2019, Titan made its most blockbuster performance, by touching an all-time high of Rs 1,115.50 per piece on Sensex. With this, just one day before Holi, Titan gave Jhunjhunwala a present by rising nearly 38th in 1-years time.
Notably, Titans blockbuster performance is already witnessed in Jhunjhunwalas wealth. so far in 2019, Jhunjhunwalas wealth has up by over Rs 900 crore in Titan. according to TrendLyne.com data, Jhunjhunwalas holding in Titan is currently valued at Rs 6,934.9 crore as on March 20, 2019. This was not the case by december 2018 finish, as the ace investors holding was below Rs 6,000 crore in Titan.
Interestingly, Titan showed a stellar performance not solely in share worth however conjointly in Jhunjhunwalas portfolio. this can be despite, the massive bull reducing his holding by 0.04% in Titan during Q3FY19.
Now, the Warren Buffett of india holds regarding 7.08% stake in Titan with 62,901,220 equity shares.
Going forward, what you want to know is that, this can be simply warming up from Titans finish. experts have any given get rating on Titan and are quite optimistic on the companys module.
Broking firm Sharekhan in its analysis note says, Titan is one of the top retailers with a strong presence in discretionary categories such as jewellery, watches and eyewear. A huge retail footprint - two million sq. ft. of retail space across ~1,600 stores - and a portfolio of strong brands make it a leading brand in most of the segments.
Further, it explained that, Titans jewellery business is expected to grow in double digits on account of sustained launch of latest assortment, enlargement in domestic footprint (retail house enlarged by one.7x), shift of customers to sure brands when demonetization and implementation of GST and robust growth in diamond jewelry. the corporate expects jewelry revenue to grow by 2.5x by FY2022.
As the discretionary environment improves and demand for branded jewellery rises, Sharekhan says, Titan is well poised to achieve double-digit revenue and earnings CAGR of 15% and 20%, respectively, over FY2018-FY2021.
Finally Sharekhan added, With a lean balance sheet (debt:equity at 0.1x) and a strong financial background, Titan is one of the best retail plays among peers. Being a Tata Group company, it has strong parent support. With improving discretionary environment and rising demand for branded jewellery, Titan is well poised to achieve double-digit revenue and earnings CAGR of 15% and 20%, respectively, over FY2018-FY2021. We have a Buy recommendation on the stock.
Sharekhan has given a target price of Rs 1,200 on Titan. On wednesday, when touching Associate in Nursing all-time high of Rs 1,115.50, the share price of the company corrected and ended at Rs 1,102.65 down by just 0.59% on BSE. At Rs 1,102.65, Titan is seen to rise by nearly 9/11 if we take into thought the target worth. Hence, one will still still get Titan.