Rekha Rakesh Jhunjhunwala loses over Rs 1,200 crore in a single day as shares fall around 8 per cent today!

The company's shares have delivered a multibagger return of around 127 per cent in the past three years.

Rekha Jhunjhunwala, the wife of the late investor Rakesh Jhunjhunwala, saw a significant decline in the notional value of her investments in Titan Company, as the stock plummeted nearly 8 per cent in Monday's trading session following the announcement of Q4 FY24 results.

As of March 31, 2024, Rekha Jhunjhunwala held a 5.35 per cent stake in the Tata Group firm. Her stake in Titan was valued at Rs 16,787 crore at the closing price on Friday. However, with Titan company's market capitalisation falling below the Rs 3 lakh crore mark to Rs 2.91 crore, Jhunjhunwala's notional investment value dropped to Rs 15,582 crore, representing a decrease of Rs 1204.89 crore. Titan shares experienced an approximately 8 per cent decline, reaching a low of Rs 3257.05 on the BSE.

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Share Performance:

Today the company’s stocks closed the day at Rs 3281.65 per share representing a decline of 7.18 per cent today. The current market capitalisation of this company stands at Rs 2.91 crore. Shares of this Large-Cap company have delivered a return of around 20 per cent in the past month and a multibagger return of around 127 per cent in the past three years.

Financial Performance:

As per the Quarterly Results in Q4 FY24, Titan reported revenues of Rs 12,494 crore, reflecting a growth of 20.60 per cent YoY compared to the same quarter in the previous year, when the revenue stood at Rs 10,360 crore. The company posted an operating profit of Rs 1,191 crore for the quarter, in contrast to an operating profit of Rs 1,089 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 771 crore, compared to a net profit of Rs 736 crore in the same period last year.

Following the performance in 4Q FY24 and considering the near-term margin headwinds in the jewelry business, we have reduced our EPS estimates by 8 per cent in FY25 and 2 per cent in FY26. Despite this adjustment, we maintain optimism about Titan's long-term performance, driven by market share gains in the jewelry business due to its strong brand name and execution, scaling up, and the improving profitability of other brands,” it said.

Business Overview:

Titan Company stands as one of India’s most esteemed lifestyle firms, renowned for its leadership roles in the Watches, Jewellery, and Eyewear sectors, driven by its trusted brands and unique customer experiences. Founded in 1984, it originated as a joint venture between the TATA Group and the Tamilnadu Industrial Development Corporation (TIDCO).

Investors must keep this stock on their radar.