Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, faced a substantial loss in her investment portfolio as Titan Company shares plummeted over 5% today, following the firm’s Q4 results. This decline led to a staggering ₹800 crore erosion in the estimated worth of her holdings in the Tata group firm.
Rekha Jhunjhunwala, holding a significant 5.35% stake in Titan Company as of March 31, 2024, saw her investment worth ₹16,792 crore at the previous closing price. However, the market turmoil today drove Titan’s market capitalization below the ₹3 lakh crore-mark, landing at ₹2,98,815 crore, down from ₹3,13,868 crore on Friday. Consequently, Rekha Jhunjhunwala’s notional investment value now stands at ₹15,986 crore, marking a substantial decline of ₹805 crore.Titan’s disappointing Q4 performance contributed to the downward spiral, with its standalone net profit rising by a modest 7% to ₹786 crore compared to ₹734 crore in the same quarter last year. Despite a commendable 17% increase in revenue to ₹10,047 crore, concerns loom over near-term margin challenges in the jewelry business.
In light of the results, analysts have revised down their EPS estimates for FY25 and FY26 by 8% and 2%, respectively, acknowledging short-term headwinds. However, they maintain optimism regarding Titan’s long-term trajectory, citing factors such as market share expansion in the jewelry segment, bolstered by a robust brand presence, efficient execution, and the potential for improved profitability in other brands.
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