Ace investor Rakesh Jhunjhunwala has bought an additional 16.2 lakh shares in Titan Company in the October-December quarter. The big bull held 4.67 crore Titan shares at the end of Q3 compared to 4.52 crore shares in the preceding quarter. Jhunjhunwala raised his stake in Titan Company to 5.27% in Q3 from 5.1% for the quarter ended September 2019.
His wife Rekha Jhunjhunwala's stake inched up to 1.42% in Q3 compared to 1.41% stake in the preceding quarter.
At the end of Q3, Rekha Jhunjhunwala held 1.26 crore shares compared to 1.24 crore shares in the preceding quarter. Rakesh Jhunjhunwala first bought Titan stock in 2002-2003. Since then, the smart investor has been altering his shareholding according to market conditions and performance of the firm.
Another key shareholder LIC also hiked its stake in Titan to 1.64 per cent from 1.02 per cent. The state-owned insurer held 1.46 crore shares in Titan at the end of last quarter compared to 95.49 lakh shares at the end of September quarter in 2019.
Titan Company share price was the top Sensex gainer amid a falling market today. Sensex fell up to 235 points and Nifty lost 72 points to 12290 in early trade today. Share price of Titan Company gained 1.11% to Rs 1179 against previous close of Rs 1166. Titan share price closed 1.54% or 18 points higher on BSE. The large cap stock has gained 3.03% in last 3 days. It hit an intra day high of Rs 1,191 on BSE.
On Nifty, the stock gained the most rising 1.23% to Rs 1,181. The jewellery share touched an intra day high of Rs 1,191.50. On Nifty, the stock ended 1.33% or 15 points higher at Rs 1182. 0.47 lakh shares of Titan Company changed hands amounting to turnover of Rs 5.52 crore on BSE. However, the stock has lost 6.68% during the quarter ended December 2019.
In its third quarter update on the performance of the firm, Titan said retail sales in jewellery were better than expected at the beginning, possibly due to a good wedding season and reasonable inelasticity of wedding jewellery, but growth in watches and eyewear were difficult to come by. In the jewellery segment, the company itself did better and market share gains were evident.
"The division met its revised expectations for the quarter. While the revenue growth for quarter is 11 per cent, the retail growth was actually much better at 15 per cent," it said.
Foreign institutional investors cut their holding to 18.31 per cent from 18.77 per cent in Q3 but retail investors remained bullish on the stock and raised their stake to 9.38 per cent from the earlier 9.18 per cent.
Titan will announce its earnings for the quarter ended December on February 4.
In the second quarter of current fiscal, the firm reported a 1.8 per cent year-on-year (YoY) growth in standalone net profit at Rs 320.16 crore against standalone net profit of Rs 314.38 crore in the same quarter last year.
Revenue from operations during July-September quarter stood at Rs 4,435 crore, against last year's income of Rs 4,407 crore during the same period. Total income rose marginally by 0.7 per cent to Rs 4,466 crore in Q2FY20, from Rs 4,434 crore in Q2FY19. Segment wise, jewellery business had a subdued quarter due to very high gold prices, recording revenue of Rs 3,528 crore as compared to Rs 3,582 crore last year.Jewellery growth guidance was trimmed to 11-13 per cent from 20 per cent after the jewellery business posted revenue of Rs 3,528 crore as compared to Rs 3,582 crore last year, amid higher gold prices. High gold prices posed a challenge for Titan in the second half of last financial year. On August 29, gold prices hit all-time high of Rs 40,220 per 10 grams, according to the All India Sarafa Association.Reduction in growth guidance of jewellery business in wake of the subdued market and consumer sentiments led to negative sentiments around the stock.
The stock fell up to 10.43% to Rs 1,150 intra day on November 6 after Q2 earnings were announced. The large cap stock closed 9.96% or 127 points lower at Rs 1,156 on that day.
By Aseem Thapliyal