Including Rakesh Jhunjhunwala, this 'piece of jewel' made many crorepatis
Rakesh Jhunjhunwala favourite stock has risen over 1350 per cent in the last 10 years on absolute basis. That said, Rs 10 lakh invested in the stock in 2008 has turned into Rs 1.45 crore now.
Global brokerage CLSA calls it a 'piece of jewel'. For ace investor Rakesh Jhunjhunwala, it is a most-favourite stock. And why not! On absolute basis, the stock of this Tata Group firm has risen over 1350 per cent in the last 10 years. That said, Rs 10 lakh invested in the stock in 2008 has turned into Rs 1.45 crore now.
The company last week reported 70.86 per cent jump in consolidated net profit for the March quarter, following which CLSA revised target price on the stock, maintaining 'outperform' rating.
The stock is none other than Titan Company, strongest player in gems and jewellery segment, according to experts.
However, Titan share price today slipped over 1 per cent to Rs 935.15 on the BSE in Monday's trade.
Avinash Gorakssakar, HoR, Joindre Capital advised investors to buy Titan on any dips, holding it for long-term. "Titan just came out with strong set of numbers and management commentary also remained robust. We estimate FY19 earnings to come in good, and foreign investors also prefer this stock," he said.
Notable, the management refrained from giving FY19 guidance, but it reiterated its commitment to grow Jewellery revenues 2.5 times to Rs 500 bn in the next five years.
The company's Q4 earnings came in ahead of CLSA's expectations as its Q4 Ebitda rose 67 per cent YoY to Rs 4.6 billion, 15 per cent ahead of CLSA forecast.
"We remain positive on Titan, although easy money has been made with 100 per cent rally in the stock in the past 12 months. We upgrade EPS by 3-4 per cent and revise target to Rs 1,050 (50x Mar-20CL earnings)," CLSA said in a results review report.
As of March 31, 2018, promoters held 52.9 per cent stake in Titan, while foreign portfolio investors have 21.3 per cent stake in the company. Rakesh Jhunjhunwala along with his better half Rekha Jhunjhunwala bought 1,07,000 additional shares in Titan in the March quarter to raise their holding in the jewellery firm to 7.51 crore shares, or 8.46 per cent stake. It was 7.50 crore shares, or 8.45 per cent stake, at the end of December quarter. The stock gained 14 per cent so far this year.
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Titan Company reported 70.86 per cent jump in consolidated net profit at Rs 304.41 crore for the fourth quarter ended March 31 against Rs 178.16 crore net profit in the same quarter of 2016-17. Titan's total income stood at Rs 4,125.69 crore during Q4. It was Rs 3,692.82 crore in the year-ago period.
For 2017-18 financial year, Titan reported net profit of Rs 1,101.91 crore compared with Rs 697.28 crore in the previous year. Its total income in the year stood at Rs 16,244.81 crore as against Rs 13,452.62 crore in 2016-17.