Already under the bear grip, ‘Big Bull’ Rakesh Jhunjhunwala‘s favourite stock
on Friday nosedived over 7 per cent to hit a low of Rs 1,911. The Tata Group stock has so far crashed over 30 per cent from its 52-week high of Rs 2,767.55 on BSE on March 21.
Today’s fall was the sharpest fall in the stock of the luxury goods firm
in the last two years.
Earlier this month, the Jhunjhunwalas had pared their holding in
to 3.365 per cent from a 6.169 per cent stake as of May 31.
Not just Jhunjhunwala, who along with his better half Rekha owned 5.1 per cent stake in the Tata Group company, several other long-term investors have been bullish on Titan stock. PMS fund manager Saurabh Mukherjea had recently said that after
, Titan is the third stock that can become a $1 trillion company after 10 years.
The bluechip stock has surged over 900 per cent in the last 10 years. While brokerages continue to remain bullish on this Tata group company, analysts see further selling pressure on the stock amid inflationary pressures and expensive valuations.
An average price target on the stock at Rs 2,598, as suggested by Trendlyne, hints at a potential 35 per cent upside on the counter.
Last month, Titan announced that it is aiming at a growth of 2.5 times in its flagship jewellery business in the next five years. According to the company, there is a “huge headroom in a geographically fragmented market”, as it has only a 6 per cent market share of the Rs 4 lakh crore market.
For FY23, Titan expects a 40 per cent growth in its top line and 50 per cent in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation).
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