Print   Close

This stock held by ace investor Rakesh Jhunjhunwala falls 3.7% after Credit Suisse cuts target price

BusinessToday.In     September 12, 2018

The Titan Stock fell in early morning trade after Credit Suisse cut the target price for the stock saying its expects growth of the firm to slow down further in the near term. The stock fell up to 3.7% or 30 points to 790.20 on the BSE. The stock closed at 820.60 on BSE yesterday.

Credit Suisse in a note said an overhang on Titan is potential regulatory action if rupee depreciation worsens. In 2013, govt had taken measures to curtail gold imports to support the currency.

The brokerage sees this as a low risk at this stage.

It also said absence of wedding dates from August to December is expected to squeeze near-term demand.

Credit Suisse revised downwards FY19/20 earnings estimates of Titan by 2-3% and cut stock target price from Rs 950 to Rs 935.

Interestingly, ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held 6.27 crore shares of Titan Company at the end of June quarter this fiscal.

According to a disclosure made to BSE by Jhunjhunwala, he along with persons acting in concert sold 1.25 crore equity shares (1.40%) in Titan Company from May 22 to June 27, 2018.

Since June 27, the stock price has fallen 6.7% till date.  

At 12:31 pm, the stock was trading at 810 level down 1.09% on the BSE.

The large cap stock has been losing for the last three days and fallen 6.13% during the period. It outperformed the Sensex by 10.50% in last one year by logging gains of 26.85%. Sensex rose 16.35% during the period.

23 of 31 brokerages rate the stock "buy" or 'outperform', seven "hold" and one "sell", according to analysts' recommendations tracked by Reuters.

Titan Company is engaged in offering watches, jewellery and others. The company's segments include watches, jewellery, eyewear and others. The company offers plain and studded gold jewellery brands, such as Tanishq, GoldPlus, Zoya, Mia, which are retailed through Tanishq, GoldPlus, Zoya and Mia stores. The Company offers watches and accessories, such as bags, sunglasses in brands, including Titan, Sonata, Fastrack and sub brands, such as Raga, Xylys and Edge, among others.

URL for this article :
@ Copyright 2019 India Today Group.