Titan Company, whose shares ace investor Rakesh Jhunjhunwala holds, will enter the benchmark Sensex on December 23. Titan Company stock will be accompanied by Ultratech Cement and Nestle India to the benchmark index. Titan Company stock has been on Jhunjhunwala's radar since 2002.
Rakesh Jhunjhunwala first bought 6 crore shares of Titan Company in 2002-2003 at a price of Rs 3, according to media reports. The stock which currently trades around Rs 1,165 has risen nearly 38,733 percent till date. Jhunjhunwala along with his wife Rekha holds around 6.51% or 5.76 crore shares in the large cap stock which is the oldest constituent of the big bull's portfolio.
Of late, the stock has clocked strong performance on other fronts which makes it an eligible candidate to acquire a slot on Sensex.
Here's a look at five primary factors why Rakesh Jhunjhunwala's favourite stock will be included in the 30-stock index.
Apart from fulfilling the eligibility criteria for entry into Sensex, the firm has been a consistent performer on the financial front too during the last one year. Profit after tax rose 1.8% to Rs 320.16 crore for the quarter ended September 2019 compared to Rs 314.38 crore in the corresponding period of last fiscal.
The firm witnessed subdued performance in jewellery business led by a demand slowdown due to gold prices hitting their all-time high in last quarter.
Revenue of the luxury goods maker stood at Rs 4,435 crore in Q2 of the current fiscal compared with Rs 4,407 crore in second quarter of previous fiscal. Earnings before interest, tax, depreciation and amortisation climbed 9.9% to Rs 513.2 crore in Q2 of the current fiscal compared with Rs 467.1 crore in the corresponding period of previous fiscal.
The company managed to improve its cash flow position for fiscal ended March 2019 at Rs 102.39 crore (negative) from Rs 205.37 crore (negative) for fiscal ended March 2018.
By Aseem Thapliyal
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