Rakesh Jhunjhunwala cuts stake in Titan Ind to 6.77%
Investor Rakesh Jhunjhunwala has reduced his stake in watches to jewellery maker Titan Industries by over 1 percent in Jan-March, according to shareholding data released by stock exchanges.
April 16, 2013 / 20:42 IST
Moneycontrol Bureau
Investor Rakesh Jhunjhunwala has reduced his stake in watches to jewellery maker Titan Industries by over 1 percent in Jan-March, according to shareholding data released by stock exchanges. Jhunjhunwala held 8.05 percent in Titan as of Dec 31, 2012. His wife Rekha held 2.26 percent. According to NSE data, his stake has since come down to 6.77 percent as of March 31. Rekha now holds 2.44 percent stake in Titan.Shares of the company, which owns India's largest jewellery retail chain Tanishq, have been under pressure in the last few sessions amid concerns that the recent sharp fall in gold prices could hurt earnings.In fact, the stock has fallen near 16 percent since Dec-end."We are concerned about moderating gold price realizations, which has been a key driver of Titan's growth in the past 5 years. While it is difficult to quantify the numeric relationship between gold prices and jewellery volumes, we think that if gold corrects further, the 'money chasing performance' phenomenon could reverse - something organised jewellers haven't yet seen," said Citigroup analysts Aditya Mathur and Jamshed Dadabhoy in a April 10 report.Citi continues to advise investors "sell" Titan shares and has cut its price target to Rs 235 from Rs 275.Mathur and Dadabhoy expect a 22 percent rise in Titan's revenue and 28 percent increase in net profit in the fourth quarter. Titan shares were up over 1 percent at Rs 242 on NSE in afternoon trade in a strong broader market. The Nifty was up near 2 percent. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
