Titan cracks over 3% as Rakesh Jhunjhunwala cuts stake

MUMBAI: Titan fell as much as 3.53 per cent in intraday trade after ace investor Rakesh Jhunjhunwala cut his stake in the company.

The stock ended the day in red, down 1.48 per cent or Rs 6.10 at Rs 405.6.

According to data available on the BSE, Jhunjhunwala has sold 1.28 per cent stake in Titan in quarter ended March. He now holds 5.66 per cent stake in the company from earlier 6.94 per cent.

Analysts are expecting Titan to report moderate results in Q4 due to fall in gold prices.

"We see lower revenue growth for Titan in absence of the Golden Harvest scheme and a double-digit decline in gold prices. However, a low base for jewellery margins and lower interest cost would drive 10% increase in net profit," said IDFC report.

IIFL is of the view that except Titan, all consumer discretionary companies are expected to register double digit growth in top line.

"Titan is likely to witness moderate revenue growth in Q4 on account of higher base and muted demand in watch segment. Company is likely to realize the benefit of international hedging in this quarter giving 210bps qoq improvement in OPM," the report added.