Rakesh Jhunjhunwala Portfolio: This expert explains which Jewellery stock has potential to move up further

Rakesh Jhunjhunwala Portfolio: The Big Bull's stockholding is the envy of all. There are outstanding stocks there and investors keep a track of Jhunjhunwala's market movements to glean important points they can use. In this respect, we look at a Tata group company - Titan. Titan share price today is Rs 1605, up Rs 34 or 2.1%. As per the latest corporate shareholdings filed, Rakesh Jhunjhunwala publicly holds 38 stocks with a net worth of over Rs 16600 cr. He holds 5.32% stake in Titan (4.7 cr shares) worth Rs 7400 cr. Titan constitutes nearly 45% of Big Bull’s Portfolio. The market cap of Titan is over 1.4 lk cr.
 
Titan Share price: Prabhudas Lilladher has revised FY21 estimates by 2.8% on back of better than expected recovery in jewellery and eyewear division. Prabhudas Lilladher estimated 34.5% PAT CAGR over FY20-23. Prabhudas upgraded the rating to ACCUMULATE with a target price of Rs 1663 (earlier Rs 1601). Titan’s long term structural story remains intact on account of market share gains, strong balance sheet, franchisee based model, strong brand, and strong head start in executing strategies like customer safety and Omni Channel across product segments. Upgrade to Accumulate.

Technical Analysis on Titan Share price:

Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking says that TITAN will find some resistance at levels of Rs 1620, once this level is taken out one can see a target of Rs 1660 – Rs 1670. The stop-loss on Titan is Rs 1550.

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Avinash Gorakshkar, Director Research at ProfitMart Securities said that Titan has a strong support in a box as it consolidates above the break out level and having multi month trend line support above Rs 1560, it will surely give other 10-15% gains. The stop loss for the trade is Rs 1500. 

Prabhudas Lilladher are upgrading Titan from Hold to Accumulate post robust performance in Q4 led by:

1) 60% growth in Jewellery led by weddings
2) 90% recovery with flat sales in watches
3) 20% growth in Eyewear
4) 80% growth in new ventures led by Taneira

Prabhudas Lilladher says that it believes a spike in covid-19 cases, region wise lockdowns and restriction in operations are likely to impact near term sales. It added that omni-channel strategy across jewellery, watches and eyewear will neutralise impact to some extent. It also said that segments like Taneira, Eyewear and entry into Over the Head headphones and Truly Wireless earphones will emerge as major growth drivers in coming years