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Rakesh Jhunjhunwala made over Rs 1,500 crore from this stock since March

Rakesh Jhunjhunwala made over Rs 1,500 crore from this stock since March

Rakesh Jhunjhunwala made over Rs 1,500 crore from this stock since March
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By Pranati Deva  Aug 3, 2020 2:42:44 PM IST (Published)

Shares of Titan surged over 4 percent on Monday after the gold price surged to a record high and it announced a dividend of Rs 4 per share.

Shares of Titan surged over four percent on Monday after the gold price surged to a record high and it announced a dividend of Rs 4 per share. Gold prices rose to an all-time high on growth concerns as a spike in coronavirus cases may reimpose lockdowns boosting the demand for the yellow metal.

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The stock price of ace investor Rakesh Jhunjhnwala's favourite stock surged as much as 4.4 percent to Rs 1,089.10 per share. It has risen over 50 percent from its COVID lows of Rs 720, hit on March 24, 2020. It has declined 9 percent in 2020 till date while jumped 8 percent in the last 1 month.
Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala holds 4.90 crore shares or 5.53 percent in the firm as of June quarter.
When the shares of Titan hit its March low, the couple's investment in the firm stood at Rs 3,528 crore, which has risen to Rs 5,112 crore as of Friday's closing, giving them a boost of Rs 1,584 crore in since March.
In its June quarter update, Titan said that recovery in the jewellery segment has been better than expected. The company said it expects customers to spend relatively more on jewellery compared to other discretionary spends as gold jewellery continues to be a valuable store of value.
Titan Company Managing Director C K Venkataraman said following the outbreak of the pandemic, the perception of gold as an asset class has improved considerably.
"Large scale weddings and international holiday travels are expected to reduce, freeing up funds for jewellery purchase. We may also witness a spree of 'indulgence consumption' after the lockdown is lifted and the situation is near-normal, opening up growth prospects for our products in the category of watches and fragrances. Titan is staying prepared to seize this expected demand," he added.
However, brokerages continued to remain bearish on the stock. CLSA has a ‘sell’ call on Titan with the target price reduced to Rs 855 per share. Titan has rebounded on expectations of a recovery in business but we expect the company to be a late-cycle beneficiary, it said.
Morgan Stanley also maintains 'underweight' call on the stock, keeping the target price at Rs 770 per share. Even though Titan is rapidly opening stores and gold coins and jewellery are in demand, it said that full-fledged demand recovery will remain elusive in 2020.
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