Wednesday, Jun 29, 2022

Why Rakesh Jhunjhunwala-Owned Titan Hit Record High On Friday?

Shares of Rakesh Jhunjhunwala-owned Titan Company rose as much as 3.48 per cent to hit record high of Rs 2,687 on the BSE.

Shares of Rakesh Jhunjhunwala-owned Titan Company rose as much as 3.48 per cent to hit record high of Rs 2,687 on the BSE after the company reported strong December quarter growth update across verticals post market hours on Thursday. Titan's jewellery business rose 37 per cent in December quarter year-on-year (Yo-Y) and company added 14 stores to achieve total store count of 428 stores, the Bangalore-based company said in a stock exchange filing.

Its watches and wearable category registered growth of 28 per cent and the company added 20 stores during the October-December period.

"Buoyancy in jewellery demand driven by festive purchases in October and November helped the division achieve significant Revenue uplift for the quarter. Both walk-ins and customer conversions were significantly higher compared to last year," Titan said in a press release.

"The contribution from Tier-1 towns continued to improve and was close to pre-pandemic levels. Both plain and studded categories witnessed strong double digit growth. Studded share in the overall pie has slightly improved compared to same period last year. GHS enrolments have recorded high double digit growth rates driven by strong buyer uptick. Tanishq's network expansion of 14 stores (net) includes 2 new stores in Dubai at prime locations of Dubai mall and Al Barsha," Titan said.

Under its watches and wearable category, Titan launched Titan Smart watch which is Alexa enabled. The company also launched 'Titan Maritime II' and 'Raga Love All' watches.

Titan's eye wear business registered growth of 27 per cent on an annual basis. The company added 53 stores and total store count at the end of December quarter stood at 682 stores.

Eye wear business' strong growth was driven by sunglasses and frames with good demand uptick also seen in international brands. The division accelerated its growth journey with significant network expansion during the quarter, Titan said.

Ace investor Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala own close to 5 per cent stake in Titan Company, data from BSE showed.

As of 11:53 am, Titan shares erased intraday gains to trade 0.2 per cent higher at Rs 2,602, underperforming the Sensex which was down 0.51 per cent.