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Titan Company share falls for fourth session post Q4 earnings

Rakesh Jhunjhunwala reduced his stake in Titan in March 2021 quarter. The ace investor sold 22.50 lakh shares in the fourth quarter of FY21

Rakesh Jhunjhunwala reduced his stake in Titan in March 2021 quarter. The ace investor sold 22.50 lakh shares in the fourth quarter of FY21.

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Shares of Titan Company declined for the fourth consecutive day after the company announced its March quarter earnings. The share has lost nearly 6 per cent in the last five trading sessions.  

The stock has given 16 per cent returns over the last six months and 58 per cent over the last 12 months. Currently, it is trading 13 percent below its 52-week high and 74 percent above its 52-week low.  

Titan Company, wherein Big Bull Rakesh Jhunjhunwala cut some stake in the March quarter, reported a standalone profit of Rs 529 crore as against Rs 357 crore in the year-ago quarter. Revenue from operations climbed 61.1 percent YoY to Rs 7,135 crore during the quarter ended March 2021.

Rakesh Jhunjhunwala reduced his stake in Titan in March 2021 quarter. The ace investor sold 22.50 lakh shares in the fourth quarter of FY21. As per the shareholding pattern for March 2021, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together held 5.06 per cent stake in the company, which was at 5.32 per cent in the December 2020 quarter. Meanwhile, the stock market veteran increased his stake in stocks such as MCX, Fortis Healthcare, and Agrotech Foods in the last quarter.

"While valuations of 50.6x FY23E EPS are not cheap, the long runway for profitable growth deserves a premium multiple. Given the ongoing lockdown/restrictions across India, we have cut our FY22E EPS estimate by 12.2 per cent. However, there is no material change to our FY23E EPS," said Motilal Oswal Securities.

"The financial year ended March 2021 has indeed been a most testing one for the Company with the pandemic hitting its operations very significantly, particularly in the first half of the financial year. But the bounce-back of the Company on the revenue front so quickly, led entirely by the complete support of our customers and the total dedication and innovative spirit of our employees and business associates, has been extremely gratifying," said Mr. C K Venkataraman, Managing Director, Titan Company Limited.

"While the profits before tax and exceptional items for the year are lower than the previous year, mainly due to the impact of the pandemic on the business mix, the Company did exceptionally well on the Cost optimization program and Cash generation front. We have also become stronger in each of our business segments. We believe the experience of the past year will help the company face future challenges even better," he added.


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