February 25, 2021

Titan shares: Rakesh Jhunjhunwala’s Rs 7,600 crore guess paying off as Titan’s development section kicks in



NEW DELHI: Seasoned investor Rakesh Jhunjhunwala‘s greatest inventory guess Titan Firm noticed its shares climbing Three per cent in Wednesday’s commerce after the Tata Group agency stated its jewelry division “has crossed the restoration section to development section”, whereas suggesting that the opposite two massive divisions have additionally moved a lot nearer to full restoration.

The jewelry division registered a development of 15 per cent within the December quarter, Titan stated, with watches division seeing a restoration fee of 88 per cent and eyewear division 92 per cent on YoY foundation.

Jhunjhunwala owns 33 stocks value Rs 16,200 crore. His guess on Titan Firm alone is value Rs 7,697.80 crore as of at present, as per publicly accessible knowledge with Trendlyne.

The scrip rose 3.32 per cent to hit a excessive of Rs 1,620.95 on Wednesday. It has rallied 125 per cent from its 52-week-low of Rs 720 hit in March final yr, lifting Jhunjhunwala’s portfolio worth to a report excessive to start with of 2021.

Jhunjhunwala and his higher half held 5.52 per cent stake within the jeweller as of September 30th.

Titan stated that the jewelry business noticed a resurgence within the festive season, together with pent-up demand for wedding ceremony jewelry, as many of the weddings within the first half of the yr have been deferred.

The corporate, which had introduced 15 per cent development within the 30-day festive interval from Dussehra to Diwali, stated that the expansion development was seen even after the festive season ended because the division recorded near 15 per cent development within the third quarter. The expansion excludes the sale of uncooked gold of Rs 334 crore.

“The quarter additionally witnessed a well-rounded restoration with enchancment in walk-ins and decide up of sale in metros, sub Rs 1-lakh class and studded phase. The studded combine in Q3 improved although nonetheless decrease than ranges seen within the earlier yr. The division continued to see a considerably larger share of gold coin gross sales and excellent development in wedding ceremony jewelry gross sales,” it stated.

The ticket dimension for the division continued to be larger as a result of larger gold charges and better share of wedding-related merchandise however 100 per cent restoration in patrons or variety of invoices is but to be seen.

Within the case of watches & wearables phase, the division had a restoration fee of round 88 per cent in Q3, in comparison with the income of the identical quarter final yr.

The e-commerce channel reported an absolute development of over 30 per cent.

“The festive interval noticed a surge in footfall within the procuring zones and the restoration fee improved in metros in Q3. The restoration fee for all of the retail channels had been steadily rising month on month primarily as a result of larger client walk-ins and likewise complemented by the promoting of a number of merchandise/ larger ticket dimension merchandise in a single bill,” Titan stated.

The omni-channel functionality, it stated has been scaled as much as 80 per cent of ‘World of Titan’ and Fastrack shops.

Through the quarter, Titan launched its newest line of good watches, TRAQ, meant for out of doors sports activities. The early evaluations for the watch have been very encouraging, the corporate stated. It additionally launched two premium collections — Titan Grandmaster for gents and ‘Raga Moments of Pleasure’ for ladies. Each the collections have been geared toward additional strengthening choices within the above Rs 10,000 worth band.

Moreover, Fastrack launched four main collections. Within the yr up to now, the watches & wearables division added 6 Helios retailer and closed 14 Fastrack shops, on a web foundation, lowering 7,000 sq. ft of retail house.

The third phase, eye put on, noticed a restoration fee of 92 per cent within the December quarter.

“To deal with the eyestrain drawback ensuing from elevated display screen time, spectacles have been launched with anti-reflective and blue-light filters at beginning worth of INR 999 for teenagers and adults, underneath ‘Sprint’ and ‘Fastrack’ manufacturers respectively,” Titan stated.

Titan stated {that a} vary of spectacles (frames + lenses) underneath the ‘Titan Ace’ and Fastrack manufacturers have been launched at a lovely worth level of Rs 999 onwards for worth aware clients.

Eco lite’ shops requiring decrease funding and enhancing the profitability of the franchisees have been launched in the course of the quarter, it stated.

In the meantime, different companies had a income restoration of round 80 per cent, in comparison with the income of the identical quarter in final yr. The restoration fee for fragrances and equipment continued to be muted because of the gradual restoration of two of the most important channels.