Why this favorite stock of Rakesh Jhunjhunwala is falling, know – hold or exit

Rakesh Jhunjhunwala’s favorite stock Titan recorded a decline of 2.6 percent in intraday trading on Wednesday.

Veteran investor Rakesh Jhunjhunwala’s favorite stock Titan recorded a decline of 2.6 percent in intraday trading on Wednesday. Rakesh Jhunjhunwala’s favorite stock Titan fell by 2.6 percent. Just after releasing the first quarter business update, Titan Company’s shares fell 2.6 percent to Rs 1717. Last month, this stock touched a level of Rs 1800.

Titan sales fall in the second round of COVID-19

Titan’s sales have declined in the second round of COVID-19, although it has shown a recovery in the last few days. During the current quarter (April-June), the company registered an increase of 117 percent (excluding jewelry sales) in its revenue had. Revenue grew by 50, 10 and 40 per cent in April, May and June, respectively. Its 1.44 lakh shares were traded on BSE. The government has made hallmarking mandatory on gold jewelery from June 15, 2021. Jewelers will now have to sell certified 14, 18 and 22 carat gold jewellery. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held 4.49 crore shares at the end of March 2021 quarter.

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Titan’s jewelery business may be affected

Equitymaster’s co-head Tanushree Banerjee said the fall in shares could impact Titan’s jewelery business. Titan’s other business of watches and glasses may also have an impact on this. Amarjeet Maurya, AVP, Mid Caps, Angel Broking said that once hallmarking is made mandatory, the unorganized market of jewelery will move towards the organized market. This could have a positive impact on Titan’s shares. Talking about the lifestyle category, Titan Company occupies a leading position in the organized jewelery and watches segment. Its mid-term growth outlook remains good. It is getting support from Wedding / Fashion Jewellery. In the coming days, better sales are expected in the wedding season. Due to the shift of jewelery business to organized players, the company has benefited from faster recovery in unlocked.