This is the second straight quarter where Jhunjhunwala has cut stake in this Tata group company. During the third quarter of FY21, he had sold a 0.20 percentage point stake.
Rakesh, along with his wife Rekha Jhunjhunwala, has a combined 5.06 per cent holding in Titan
at the end of March 2021.
Analysts, however, remain bullish on the jewellery maker and believe its long-term structural story remains intact despite near-term headwinds.
"We believe the spike in Covid-19 cases, region-wise lockdowns and restriction in operations are likely to impact near term sales, however, omnichannel strategy across jewellery, watches and eyewear will neutralise impact to some extent, said analysts at Prabhudas Lilladher who upgraded the stock to 'Accumulate' from 'Hold' following its Q4 business update.
It has revised Titan's FY21 estimates by 2.8 per cent on the back of better than expected recovery in jewellery and eyewear division, while cut estimates for FY22/23 by 0.6 per cent/0.9 per cent due to marginal margin contraction of 10bps/20bps.
As per ICICI Securities, despite various headwinds, Titan
has, over the years, withstood challenges and emerged as a resilient player.
"Focus on markets
share gains and maintaining balance sheet strength (RoCE: 30 per cent+) position Titan as our preferred pick in the discretionary category. We broadly maintain our estimates for FY22-23E and build in revenue, earnings CAGR of 14 per cent, 22 per cent, respectively, in FY20-23E," the brokerage said. It has a BUY rating on the stock with a target price of Rs 1,830.
That apart, Rekha Jhunjhunwala cut stake in Tata Communications
by 0.08 percentage points, or 2.5 lakh shares, in the March quarter to 1.04 per cent from 1.12 per cent she held at the end of the previous quarter of FY21. Her name had appeared among the minority shareholders of the company during the December quarter.
It could not be ascertained if she held a stake in Tata Communications
before that as companies are mandated to report shareholders having 1 per cent or more stake in them.
Rakesh Jhunjhunwala's holding also came down in VIP Industries
amid the second wave of Covid onslaught in the country. Rakesh's shareholding
declined by 2.29 percentage points, or 4.22 million shares, in VIP to 2.32 per cent with only Rekha's name appearing among the key shareholders.
At the same time, he has increased his stake in Fortis Hospital by 0.34 percentage points, or 2.55 million shares, with only Rekesh Radeshayam Jhunjhunwala holding a total of 4.3 per cent stake as against 1.79 per cent held by him in the previous quarter along with 2.18 per cent held in the name of Rekha Jhunjhunwala.
Shares of this smallcap firm have risen nearly 29 per cent during the said period, outperforming benchmark Sensex.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.