LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Rakesh Jhunjhunwala's favorite stock is Titan; here's why you should invest in it too

Jhunjhunwala has recently increased his holding in Titan by 0.06% between July to September 2018. Simply put, even Jhunjhunwala knows that Titan is roaring lion in its sector ahead. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
 Rakesh Jhunjhunwala's favorite stock is Titan; here's why you should invest in it too
The over 34-year old Titan Company is a dominator in jewelry segment both in terms of product presence and market valuation. Photo: Reuters
Written By: ZeeBiz WebTeam
Updated: Mon, Dec 31, 2018
04:09 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Trading in Rakesh Jhunjhunwala Stocks II Technical levels decoded by Bonanza Portfolio Trading in Rakesh Jhunjhunwala Stocks II Technical levels decoded by Bonanza Portfolio
This Rakesh Jhunjhunwala portfolio share has skyrocketed over 77 pct in less than 1 year This Rakesh Jhunjhunwala portfolio share has skyrocketed over 77 pct in less than 1 year
Know which Rakesh Jhunjhwala portfolio stock reinforced confidence among investors, Sharekhan Upgrades counter Know which Rakesh Jhunjhwala portfolio stock reinforced confidence among investors, Sharekhan Upgrades counter
Rakesh Jhunjhunwala bets on Tata Motors for his portfolio II Reasons Highlighted Rakesh Jhunjhunwala bets on Tata Motors for his portfolio II Reasons Highlighted
Rakesh Jhunjhunwala stocks: MULTIBAGGER! Your Rs 5 lakh would have become Rs 23.63 lakh in less than 1 year Rakesh Jhunjhunwala stocks: MULTIBAGGER! Your Rs 5 lakh would have become Rs 23.63 lakh in less than 1 year

There are some 32 stocks that have won over ace investor Rakesh Jhunjhunwala, but it would not be wrong to say that the one nearest to his heart is Titan Company. Among the big bull's total wealth from his stocks, about half has been generated courtesy of Titan performance. The over 34-year old Titan Company is a dominator in jewelry segment both in terms of product presence and market valuation. However, 2018 would not be so great for the ace investor, as he only gained single-digit growth from Titan. But looking at the bigger picture, then Titan potential is definitely as big as its name suggests. 

Now, that 2019 is just around the corner, Titan has been seen among the best players in Dalal Street going forward. This means Jhunjhunwala who is also referred to as Warren Buffett of India, is set to earn some money from Titan, getting even more richer. If you also want to avail the benefit of Titan, this is why you should invest in the company. 

According to Stewart Mackertich, here are 8 reasons why Titan can become your money making magnet on stock exchanges: 

Attractive gold exchange scheme: It offers a significantly lesser hair-cut as compared to other players with utmost quality assurance. It is targeting the revenue contribution from this program to reach 50% in next 2-3 years (currently ~30%).

Focus on wedding collection: With focus on wedding collection, company has introduced ‘Rivaah’ collection and is concentrating on
regional design collection to boost the revenue contribution from 20% to 50% from this segment.

Huge opportunities in cross selling: ’Tanishq’ has strong grip over the store level customer data which allows them to cross sell their other product like watches, eyewear & fashion accessories.

Surpassed the peers in higher margin studded segment: When the industry is going through flat to negative growth, Tanishq is maintaining
positive growth trajectory by their trendy design, strategic geographical presence (less store in south due to demand for lower margin product and stiff competition) and wide product range starting from INR7K.

Zero debt balance sheet and expansion through L2 & L3: Company has no long term debt in their books and is channelizing their efforts to open L3 category stores (asset light) in the cities where their visibility is low. The target is to increase the number of stores from 267 stores in 150 towns now to 400 stores in 250 towns in the next few years.

Key beneficiary of GST and Demo: After two major economic events like GST and demonetization, there has been a shift in buying behavior. Consumers are more comfortable purchasing jewellery from organized players because of reliability. Tanishq as a brand of Titan, has been the major beneficiary due to its stringent business policies, transparent exchange value and gold quality.

No working capital issue as compared to peers: Association with prestigious brand Tata group which helps them to manage hassle free working capital requirement like cash credit and gold lease.

Expecting higher contribution from SSG growth: SSG is likely to contribute 75-80% of jewellery sales growth, which is even higher than the 60% that it was reporting earlier. This will provide the traction to jewellery EBIT margin. 

Following which, analysts at Stewart said, "We expect the company to achieve 18% CAGR in jewellery business over the next three years and the margin support through operating leverage will help them achieve an EPS CAGR of 23% . Factoring the above rational we assign a P/E of 45x on the FY21 EPS to arrive at target price of INR1065."

Today on Sensex, share price of Titan is trading at Rs 930.55 per piece above by nearly 1% at around 1513 hours. 

On the day of 2018 year end, Titan gave only 7.67% return to Jhunjhunwala. But what is noteworthy is that, Jhunjhunwala has recently increased his holding in Titan by 0.06% between July to September 2018. Simply put, even Jhunjhunwala knows that Titan is roaring lion in its sector ahead. 

Currently, the Dalal Street king holds about 63,251,220 equity shares which are worth Rs 5,845.4 crore. Hence, if you want a piece of equity make sure you know about Titan. Invest money wisely in equities.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Rakesh JhunjhunwalaTitan share priceTitan CompanyRakesh Jhunjhunwala stocks
RELATED NEWS
Trading in Rakesh Jhunjhunwala Stocks II Technical levels decoded by Bonanza Portfolio Trading in Rakesh Jhunjhunwala Stocks II Technical levels decoded by Bonanza Portfolio
This Rakesh Jhunjhunwala portfolio share has skyrocketed over 77 pct in less than 1 year This Rakesh Jhunjhunwala portfolio share has skyrocketed over 77 pct in less than 1 year
Know which Rakesh Jhunjhwala portfolio stock reinforced confidence among investors, Sharekhan Upgrades counter Know which Rakesh Jhunjhwala portfolio stock reinforced confidence among investors, Sharekhan Upgrades counter
Rakesh Jhunjhunwala bets on Tata Motors for his portfolio II Reasons Highlighted Rakesh Jhunjhunwala bets on Tata Motors for his portfolio II Reasons Highlighted
Rakesh Jhunjhunwala stocks: MULTIBAGGER! Your Rs 5 lakh would have become Rs 23.63 lakh in less than 1 year Rakesh Jhunjhunwala stocks: MULTIBAGGER! Your Rs 5 lakh would have become Rs 23.63 lakh in less than 1 year

LATEST NEWS

Not trying to close borders with Kerala but only trying to ensure safety of people: Karnataka Dy CM

Get free BSNL SIM cards! Offer open for limited period only - RUSH

Attention NEET 2021 candidates! Check expected exam date

7th Pay Commission Latest News: How pensioners will benefit from DA, TA, salary hike for central government employees?—EXPLAINED

Tech glitch stops NSE trading; Stock Exchange reacts, promises quick action | Watch Anil Singhvi on trading HALT, 'kiski' FAULT

Big message! PM Narendra Modi says government has no business to be in business

BOOSTER dose for Yes Bank! CDP rates ‘A-' (Leadership Band); achieves Environmental Management System certification for eighth year

Covid-19 Vaccine: Latest news! Big announcement from Modi government for these age groups

RRB NTPC 5th phase exam date ANNOUNCED; do not miss, check now

Nureca IPO allotment status: Share subscription finalised! Check linkintime, bse, ipo registrar website - Know listing date

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved