Rakesh Jhunjhunwala stock: Global brokerage sees upside of 27% of this favourite stock of Big Bull

The global brokerage firm Macquarie sees an upside of over 27 per cent in the ace investor Rakesh Jhunjhunwala favourite Tata Group company Titan. The stock closed flat with a negative bias to Rs 2359.5 per share on the BSE as compared to a 1.09 per cent rise in the S&P BSE Sensex on Wednesday. 

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Titan is one of its preferred picks in the consumer space, the brokerage firm points out that the company guided to over 10 per cent jewellery sales growth and 12-13 per cent margin. The second quarter of FY22 has been good in jewellery sales to the company year-on-year, it said during results. 

The analytics and design investments enhance lead to the company as compared to peers in the jewellery segment, Macquarie mentions, adding further that the company has also been cautious on the new Omicron — a new covid-19 variant — impact. 

The Omicron impact is not yet creating and material concerns to the demand, the global brokerage firm says, expecting the share price of the company could jump to Rs 3000 per share. 

Rakesh Jhunjhunwala, who is also termed as the Big Bull of the Indian stock market, has a 4.9 per cent stake, which is 43,300,970 equity shares, as per the September-end shareholding pattern on the BSE. He has made the maximum investment in the company to Rs 10,386 crore, as per trendlyne.com. 

The Big Bull holds as many as 39 stocks publicly along with his wife Rekha Jhunjhunwala and other associates with a company named Rare Enterprises.  

Titan in its filing in October said, “The company witnessed strong recovery in demand after the second wave across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most of the divisions.” 

The company said, jewellery segment, which contributes a larger portion of its turnover, has reported 78 per cent revenue growth, while in watches and wearables, its revenue was up 73 per cent in Q2 FY22 compared to Q2 FY21.