Rakesh Jhunjhunwala Death Anniversary: The Big Bull’s golden touch for Titan

In today’s volatile global financial landscape, Indian stock market investors find solace in the wisdom of the Big Bull Rakesh Jhunjhunwala. His mantra, “You do not succeed without obsession,” resonates now more than ever. Often dubbed as ‘Warren Buffett of India’, Jhunjhunwala was a legendary investor whose investment strategy focused on identifying undervalued companies with significant growth potential and holding onto them for the long term.

On his second death anniversary today, Jhunjhunwala’s unwavering conviction and passion for the stocks in his portfolio continue to inspire even the novice generation of Indian investors. Among his most famous investments is his success story in Titan Company.

Jhunjhunwala’s tryst with Titan began more than 20 years ago, when he gave a Midas touch to the Tata Group jewellery and watches maker. The Big Bull first bought shares of Titan Company during 2002-2003 at an average price of ₹30 per share. He kept buying and selling Titan shares since then.

Many in the market considered Titan as a risky bet at that time, but Jhunjhunwala recognized its potential, believing it was destined to be much more than just a mega multibagger. He held onto the stock through thick, committed to his long-term vision for the company.

Fast forward today, Jhunjhunwala’s investment in Titan Company is often cited as a classic example of the power of long-term investing. At the end of the June 2024 quarter, Rekha Jhunjhunwala, the wife of Rakesh Jhunjhunwala, held 4.73 crore Titan Company shares, or 5.34% stake in the company.

Titan’s market capitalization stands a little more than ₹3 lakh crore today. On August 14, Rakesh Jhunjhunwala’s second death anniversary, Titan share price was trading around ₹3,400 apiece on the BSE. This makes the total value of Jhunjhunwala’s holding in Titan worth more than ₹16,000 crore.

Titan Company Business

The Jeweller and watchmaker Titan Company reported a consolidated net profit of ₹715 crore, upon a consolidated total income of ₹12,386 crore in the quarter ended June 2024.

The company’s Jewellery business’s total income for the quarter grew 9% over Q1FY24 to ₹9,879 crore. Watches & Wearables segment business recorded a total Income of ₹1,021 crore. Titan operates a total of 3,096 stores with a presence in 430 towns as of June 2024.

“Titan, with its superior competitive positioning has continued to outperform other branded players. The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category. The store count reached 3,096 stores as of Jun’24, and the expansion story remains intact,” brokerage firm Motilal Oswal Financial Services said.

Titan’s non-jewelry business is also scaling up well and is estimated to contribute to growth in the medium term. The business currently accounts for 12% and 9% of revenue and EBIT, respectively.

“We model 16%/18%/20% revenue/EBITDA PAT CAGR during FY24-26E. Titan’s valuation is rich, but it offers a long runway for growth with a superior execution track record,” MOFSL said.

The brokerage firm has a ‘Buy’ rating on Titan shares with a target price of ₹4,000 apiece.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.