Whats behind Jhunjhunwala's revived interest in Titan shares - Economic Times

Source: The Times of India

NEW DELHI: Seasoned investor Rakesh Jhunjhunwala increased his stake in in the December quarter. This was in addition to the small quantity of Titan shares he purchased in the September quarter.Jhunjhunwala either trimmed or maintained his stake in Titan in the past several quarters, making some investors wonder what triggered the recent fresh buying.Latest data showed that while Rakesh's wife Rekha made no tweaks to her holding -- 9,540,575 shares or 1.07 per cent stake in the Tata Group firm, Jhunjhunwala increased his ownership in the company to 4.02 per cent (3,57,10,395 shares) from 3.80 per cent (3,37,60,395 shares) in the September quarter.

Together, the Jhunjhunwala duo held 5.1 per cent stake in the December quarter compared with 4.9 per cent in September quarter.Individually, the Big Bull held 3.72 per cent stake in the jewellery maker as of June 30, down from 3.97 per cent stake as of March 31, 4.
03 per cent as of December 31, 2020, and 4.43 per cent as of September 2020.Analysts noted that Titan continues to turn in an impressive industry-leading performance and has kept on gaining market share of late. Buoyancy in jewellery demand driven by festive and wedding related purchases in October and November would boost its December quarter results, they noted.Emkay Global is expecting Titan to report a 30 per cent revenue growth for the quarter at Rs 9,500 crore. The growth would be 37 per cent, excluding Rs 340 crore in bullion sale during the quarter, it said.
"A slight improvement in the studded mix and operating leverage should lead to a 150 bps improvement in its Ebitda margins to 13.2 per cent. We estimate a PAT of Rs 860 crore," it said.Sharekhan said Titan may continue to benefit from share gains from regional brands, strong pent-up demand from the wedding segment and expansion in central India.The brokerage expects Titan to report robust revenue growth of 36 per cent YoY and 60 per cent as compared to pre-Covid level to Rs 10,394 crore on the back of robust demand for consumer businesses like jewellery, watches and eyewear supported by wedding and festive season along with stable gold prices.
Operating profit margin, it said, is expected to rise by 150 bps YoY to 12.6 per cent due to better operational efficiencies. This brokerage is expecting Titan's Q3 profit at Rs 870 crore.A median estimate of 28 analysts though has a target of Rs 2,579.93 on the stock suggest no upside potential.