Titan Shares Surge: Rekha Jhunjhunwala's Windfall and Q2 Performance

In the fast-paced world of stock trading, few moments are as exhilarating as a significant surge in share prices. On **Monday morning**, **Titan Company Ltd** shares climbed over **2%**, leading to a remarkable windfall for prominent investor **Rekha Jhunjhunwala**. With her stake in Titan now valued at over **Rs 17,301 crore**, she saw a notional increase of **Rs 409 crore** within seconds, thanks to the company's better-than-expected September quarter update

Strong Q2 Performance

Titan's latest quarterly results have exceeded expectations, particularly in its jewelry segment, which reported a **26% growth** in Q2, significantly surpassing analysts’ projections of 15%. This growth follows a **9% increase** in Q1, indicating a robust upward trend.

Emkay Global  noted that Titan's performance across various business segments has been impressive, and despite the competitive landscape in the jewelry market, the company is well-positioned to sustain its revenue momentum. This can be attributed to several strategic initiatives, including:

- Leveraging Channel Expertise: Titan is adept at driving volumes through its extensive distribution network.

- Focus on Premium Brands: Higher investments in premium watch brands are expected to enhance revenue.

- Cost Management**: The ongoing War-on-Waste program aims to improve efficiency and reduce costs.

Analyst Ratings and Target Prices

Following the Q2 update, analysts have expressed optimism regarding Titan's future performance:

- Emkay Global maintained a Buy rating with a revised target price of **Rs 4,400** per share. They also increased their earnings estimates by **4-5%**, reflecting confidence in Titan's ability to achieve its  12% jewelry EBIT margin** guidance for FY25.

- Centrum Broking echoed this sentiment, emphasizing Titan's potential to maintain revenue momentum amidst fierce competition, driven by effective channel strategies and innovative product offerings.

- Antique Stock Broking remains equally bullish, recommending a **Buy rating** with a target price of **Rs 4,485**. They value the stock at **60 times PE** on the expected EPS for the first half of FY27.

Conclusion

Rekha Jhunjhunwala's impressive gain of **Rs 400 crore** within moments highlights the potential of Titan Company as a strong investment. With its recent Q2 performance and strategic initiatives to combat competition, Titan appears well-positioned for continued growth. As always, investors should conduct thorough research or consult with a financial advisor before making any investment decisions.

Reference from:-

https://www.businesstoday.in/markets/stocks/story/titan-shares-jhunjhunwala-mints-rs-400-crore-within-seconds-as-top-stock-bet-jumps-on-q2-update-448969-2024-10-07