Why Rakesh Jhunjhunwala backed Titan when few did; Raamdeo Agrawal explains the winning bet

Late ace investor Rakesh Jhunjhunwala's investment in Titan has become one of the most celebrated success stories in the Indian stock market. Bought at a time when few believed in the company, the investment eventually turned into his biggest wealth creator and cemented his reputation as one of India's finest stock pickers.

Why Jhunjhunwala bought Titan

Motilal Oswal Group Chairman Raamdeo Agrawal, who knew Jhunjhunwala for decades, said the investor possessed a rare ability to identify undervalued businesses long before the market recognised their potential.

Speaking on Groww's Market Ki Baat podcast in 2022, later compiled in the book The αlpha Bets, Agrawal described him as a natural bargain hunter.

"It wasn't because he was a Chartered Accountant. It was a natural gift that allowed him to sense bargains. When he found one, he knew exactly how to make the most of it," Agrawal said.

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Jhunjhunwala began accumulating Titan shares around 2003-04, when the company was emerging from one of the toughest phases in its history. Weak consumer demand, rising gold prices, growing competition and labour issues had hurt the company's profitability, leaving investor sentiment subdued. Titan shares traded at around ₹30-35, levels that attracted few long-term buyers.

While many investors viewed Titan as a struggling watchmaker, Jhunjhunwala saw a business with strong brands, capable management and enormous potential to transform itself through organised jewellery retail under the Tanishq brand. That long-term vision became the foundation of one of India's most successful investment stories.

His conviction never wavered. As of March 31, 2026, the Jhunjhunwala family held nearly a 5% stake in Titan, valued at around ₹20,250 crore. Agrawal said many investors bought Titan in its early days, but very few had the patience to remain invested for over two decades while the company reinvented itself.

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How Titan rewarded long-term investors

Titan has since become one of India's best-performing large-cap stocks. After touching a low of around ₹1.35 in 2001, the stock embarked on a remarkable long-term rally, creating substantial wealth for investors who stayed invested.

The company's financial performance has mirrored its stock market success. Titan's strong long-term growth continues to be reflected in its financial performance. For FY26, the Tata Group company reported a 33% year-on-year rise in consolidated total income to ₹76,078 crore, while profit after tax jumped 52% to ₹5,073 crore. Managing Director Ajoy Chawla described FY26 as a landmark year, noting that after crossing the ₹50,000 crore annual revenue milestone in FY25, Titan added another ₹25,000 crore in revenue within a single year, underscoring the strength of its brands and consumer trust.

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Titan's performance

Over the past five years, Titan's earnings per share (EPS) have increased from around ₹8 to nearly ₹55, supported by strong growth in its jewellery business, expansion of its retail network and improving profitability. Although the stock has consistently traded at premium valuations, investors have continued to reward the company for its execution, governance standards and market leadership.

Titan's dominance in organised jewellery retail has been driven by the rapid expansion of Tanishq, which remains the company's biggest growth engine. The company has also strengthened its presence in watches, eyewear and international markets while outlining plans to double jewellery revenue by FY30, increase Tanishq's market share and expand its retail footprint.

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For many market participants, Titan remains the defining example of Jhunjhunwala's investment philosophy: identify a high-quality business early, buy when sentiment is weak, and stay invested long enough for the company's fundamentals to create enduring wealth. This combination of conviction and patience ultimately turned Titan into his most iconic investment.