Rekha Jhunjhunwala suffered a big loss on Monday as Titan shares tanked over 7% after its March quarter earnings failed to cheer up the investors.

New Delhi:

Rekha Jhunjhunwala, the wife of late investor Rakesh Jhunjhunwala, lost over ₹ 800 crore on Monday as the shares of the Titan Company posted a big decline.

Titan, a Tata group company

Titan, a Tata group company, has been the Jhunjhunwalas’ biggest bet. Ms Jhunjhunwala reportedly holds a 5.35% stake in the firm, as of March 31, 2024. Her holding was worth ₹ 16,792 crore per Friday’s closing.

She suffered a big loss on Monday as Titan shares tanked over 7% after its March quarter earnings failed to cheer up the investors.

♦ The shares hit a low of ₹ 3,352.25 during the day and closed at ₹ 3,281.65 on the Bombay Stock Exchange. As a result, the company’s net value fell below the ₹ 3 lakh crore-mark to ₹ 2,91,340.35 crore, wiping out over ₹ 22,000 crore from its market cap.

 According to Hindustan Times

• The decline reduced the worth of Ms Jhunjhunwala’s Titan stake to around ₹ 15,986 crore, according to Hindustan Times.

• In its latest earnings report, the company posted a 5% rise in its consolidated profit after tax (PAT) to ₹ 771 crore for the March quarter compared to a PAT of ₹ 736 crore in the year-ago period.

Wife of late investor Rakesh Jhunjhunwala Rekha Jhunjhunwala lost over ₹800 crore in notional value owing to her investments in Titan Company. The stock of Titan fell more than 5 per cent today (May 36) after the firm reported Q4 results.

Titan’s total income increased

♦ Titan’s total income increased to ₹ 11,472 crore in Q4 from ₹ 9,419 crore in the same period during the previous fiscal. The firm posted a consolidated PAT of ₹ 3,496 crore for the previous fiscal, compared with ₹ 3,274 crore in FY23. The company’s total income for FY24 stood at ₹ 47,501 crore over ₹ 38,675 crore in the 2022-23 fiscal.

report by Emkay Research

“Titan’s Q4 PAT missed estimates by 10-12 per cent, due to 70-100 bps jewelry margin miss and higher subsidiary loss,” said a report by Emkay Research.

Rekha Jhunjhunwala’s stake in Titan

Rekha Jhunjhunwala holds 5.35 per cent stake in the Tata group firm as on March 31, 2024 which was worth ₹16,792 crore at Titan’s closing price on Friday.

Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, lost over Rs 800 crore in notional value on her investments in Titan Company, as the stock fell nearly 5 per cent in Monday’s trade following the Q4 miss.

Jhunjhunwala held 5.35 per cent stake in the Tata group firm as on March 31, 2024. Her stake in Titan was worth Rs 16,792 crore at Titan’s closing price on Friday. Titan’s m-cap fell below the Rs 3 lakh crore-mark to Rs 2,98,815 crore on Monday morning from Rs 3,13,868 crore on Friday, dragging Jhunjhunwala’s notional investment value to Rs 15,986 crore, down Rs 805 crore.

Titan Company’s Q4FY2024 performance was affected by lower-than-expected Ebitda margins at 9.5 per cent, resulting in lower Ebitda growth of 9 per cent. Sharekhan said intense competition in the weak demand environment led to dip in the margins of jewellery business due to higher consumer offers.

Titan Company is targeting aggressive growth in the jewellery business but the EBIT margin of the business is likely to remain weak in the near term and improve in H2FY2025, Sharekhan said which suggested a revised target of Rs 3,990 on the stock.