In a surprising turn for Dalal Street, shares of Titan Company Ltd., one of Tata Group’s crown jewels, witnessed a sharp decline, leading to a massive ₹900 crore loss for the late Rakesh Jhunjhunwala’s family holdings. The downturn in Titan’s stock performance has raised fresh concerns among investors, prompting leading brokerage firms to re-evaluate their stance on the luxury goods giant.
On Monday, Titan shares fell over 4% intraday, marking one of the steepest single-day declines in recent months. The stock closed at ₹3,248 on the NSE, down from the previous close of ₹3,390. The fall comes in the wake of disappointing Q1FY25 updates, with the company reporting muted growth in the jewellery segment, its largest revenue contributor.
According to Titan’s quarterly business update, revenue from the jewellery business grew by just 9% year-on-year, compared to double-digit growth seen in the same period last year. Analysts believe that factors such as high gold prices, muted consumer sentiment, and elevated base effect contributed to the softer performance.
The late Rakesh Jhunjhunwala, often referred to as the “Big Bull” of Indian stock markets, held a significant stake in Titan through his family’s investment firm, Rare Enterprises. As of the latest shareholding pattern, the Jhunjhunwala family owns about 5.37% stake in Titan, amounting to approximately 4.75 crore shares. A ₹140 drop in share price translates to a staggering ₹900+ crore notional loss for the portfolio.
Despite the dip, brokerage views remain divided.
Jefferies maintained a ‘Buy’ rating but lowered its target price to ₹3,550, citing “near-term headwinds but robust long-term prospects.”
Motilal Oswal also reiterated a ‘Buy’ call, noting that Titan remains well-positioned in the premium jewellery and watches segment, although it acknowledged the impact of softer discretionary demand.
On the other hand, Nomura downgraded the stock to ‘Neutral’, highlighting valuation concerns and slowing growth momentum.
Investors are now closely watching Titan’s performance in the upcoming festive and wedding seasons, traditionally strong periods for the jewellery business. Management commentary on volume growth, margin sustainability, and new store additions will be key triggers going forward.
