Big bull Rakesh Jhunjhunwala and wife Rekha Jhunjhunwala cut their reduced stake in stock of gems and jewellery maker Titan Company to 5.53 per cent for the quarter ended March 2020. The Jhunjhunwala couple sold 1.03 crore shares of Titan during last quarter. For the quarter ended December 31 2019, Jhunjhunwalas held 6.69 per cent stake in the company.
Rakesh Jhunjhunwala first bought Titan stock in 2002-2003. Since then, the smart investor has been altering his shareholding, according to market conditions and performance of the firm. Apart from Jhunjhunwalas, foreign portfolio investors (FPIs) also reduced their stake in the company to 17.74 per cent in last quarter compared to 18.31% in December quarter.
However, domestic institutional investors such as Life Insurance Corporation and mutual fund houses raised their stake to 2.27 per cent and 5.66 per cent, respectively, in March quarter from 1.64 per cent and 5.15 per cent, respectively, for the quarter ended December 2019.
The stock has lost 18.48% since the beginning of this year and has fallen 11.2% during the last one year. It traded higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
Titan Company share ended over 11% higher on April 9, 2020 after the firm said it was working out its strategy to manage the crisis situation amid the coronavirus lockdown with particular focus on ensuring adequate liquidity. Sentiments around the stock were positive as Titan Company said its watches division grew by 1% despite the significant loss of sales in the month of March.
Ecommerce was the fastest growing channel for both Q4 and full year, the company added in its Q4 update. In Q3 of last fiscal, Titan Company reported a 12.9 per cent rise in standalone net profit at Rs 470 crore up from Rs 416.23 crore in the same period last year. Titan Company's sales for Q3 grew 8.40 per cent to Rs 6,105.96 crore from Rs 5,632.45 crore in the same quarter last year.
By Aseem Thapliyal