Can this Rakesh Jhunjhunwala stock recover after witnessing a substantial downfall?

Can this Rakesh Jhunjhunwala stock recover after witnessing a substantial downfall?

Shamita Nadkarni
/ Categories: Trending, Mindshare

Titan Company Ltd, a stock in the portfolio of ace Investor Rakesh Jhunjhunwala has tumbled over 28 per cent within 3 months.

Titan Company Ltd is among India’s most respected lifestyle companies. It has established leadership positions in the watches, jewellery, and eyewear categories led by its trusted brands and differentiated customer experience.   

On a consolidated basis, the company has reported a 7.22 per cent decline in its net profit at Rs 527 crore for the quarter ended March 2022 as compared to Rs 568 crore for the same quarter previous year. On the other hand, the total income of the company improved by 4.25 per cent to Rs 7,872 crore for Q4FY22 as compared to Rs 7,551 crore for the same quarter the previous year.   

In the market bloodbath, regardless of the satisfactory Quarterly Results, the shares of the company have witnessed a significant downtrend, failing to deliver returns to its investors. 

Earlier, long-term investors profited from this Bluechip as the stock has appreciated over 900 per cent in a decade. Even when the share price of this S&P BSE Sensex company is falling, investors still have bullish sentiments and have maintained a BUY call on this stock.  

As per the reports for the quarter that ended in March 2022, the Ace Investor and his wife Rekha, together, held a 5.05 per cent stake in Titan. He owns 3.5 crore shares and his wife owns 95 lakh shares of the company.   

Taking into consideration, the company’s announcement about its robust expansion plans, investors are positive that the setback is momentary and this fundamentally strong stock will recover. They are certain that this Tata Group stock will gain traction as the company has noticeable progress and long-term benefits.   

The company has a 52-week high of Rs 2767.55 and a 52-week low of Rs 1661.85. On Friday, June 17, the scrip ended at Rs 1935.35, a decrease of 6.06 per cent.   

Only “time” will tell whether investors should have invested in this dip or not!  

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