Rakesh Jhunjhunwala’s wife suffers loss of Rs 800 crore as key stock tanks
Titan's shares on the Bombay Stock Exchange closed at Rs 3,281.65 after reaching a low of Rs 3,352.25 during trading hours
On Monday, May 6th, 2024, Rekha Jhunjhunwala, the wife of the late investor Rakesh Jhunjhunwala, lost over Rs. 800 crore in notional value owing her investments in Titan Company, whose stock fell more than 5%, after the firm reported Q4 results.
Titan, a company within the Tata group, is the largest investment in the Jhunjhunwala family portfolio. As of March 31, 2024, Rekha Jhunjhunwala owned 5.35 percent of the Tata Group company, which was valued at ₹16,792 crore at Titan’s closing price on Friday. But on Monday, Ms. Jhunjhunwala’s shareholding lost value when Titan’s stock fell more than 7% as a result of the underwhelming March quarter results announcement, which did little to improve investor mood.
Titan’s market capitalization decreased to ₹2,98,815 crore in trading today from ₹3,13,868 crore on Friday, crossing the ₹3 lakh crore threshold. According to a report in Hindustan Times, this fall caused Ms Jhunjhunwala’s Titan shareholding to decrease by ₹805 crore to ₹15,986 crore.
Titan’s shares on the Bombay Stock Exchange closed at Rs 3,281.65 after reaching a low of Rs 3,352.25 during trading hours. As a result, the company’s whole market value was erased, with its market capitalization dropping below Rs 3 lakh crore to Rs 2,91,340.35 crore.
After the business announced a 7% increase in standalone net profit at ₹786 crore in Q4 from ₹734 crore in the same quarter the previous year, Titan shares plummeted to a low of ₹3,352.25 on the BSE. The firm reported a 17% increase in revenue to ₹10,047 crore during the quarter. The company’s total income for FY24 stood at ₹ 47,501 crore over ₹ 38,675 crore in the 2022-23 fiscal.
“Titan’s Q4 PAT missed estimates by 10-12 per cent, due to 70-100 bps jewelry margin miss and higher subsidiary loss,” said a report by Emkay Research.
Titan reported a 5% increase in consolidated profit after tax (PAT) to Rs 771 crore for the March quarter in its most recent financial report. This is in contrast to Rs 736 crore during the same time previous year. Titan’s overall revenue increased to Rs 11,472 crore in the fourth quarter of the previous fiscal year from Rs 9,419 crore during the same time the year before.
For the whole fiscal year, the company’s consolidated PAT was Rs 3,496 crore, up from Rs 3,274 crore in FY23. Antique Stock Broking said volatility in gold prices and heightened competitive intensity will impact Titan’s margins in the near term.
“Post the 4QFY24 performance and factoring near-term margin headwinds in the jewelry business, we have cut our EPS estimates by 8 percent in FY25 and 2 percent in FY26. We remain optimistic about Titan’s long-term performance driven by the market share gain in the jewelry business on account of strong brand name and execution, scaling up, and improving profitability of other brands,” it said.
