Titan share surges nearly 8% after reporting 205% jump in Q1 sales

Rakesh Jhunjhunwala backed Titan Company’s share price rose 7.83% to Rs 2170.95 per share on Thursday. The stock rocketed upward as investors responded to the company’s quarterly report, which stated that the April-June quarter of the current fiscal year was a near-normal first quarter after a two-year break.

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“Sales in April-June grew 205% on-year on a low base and clocked a 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years,” Titan said in an update. 

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Titan reported to the stock exchanges that its Jewellery sector increased 207% year on year in the first quarter, while its watches and wearables business climbed 158%. It should be emphasised, however, that the abrupt leap might also be attributable to a lower base.

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“The (Jewellery) division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya in May month after 2 years of Covid induced lockdowns in this period,” Titan said. 

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The company’s eyecare business increased by 176% year on year, while other businesses, such as perfumes and fashion accessories, and Indian dress wear, increased by 455%. Standalone company growth was reported to be 205%, with the opening of 120 additional outlets.

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Titan Company is widely regarded as Rakesh Jhunjhunwala’s preferred stock. In terms of valuation, the company is the largest position in the big bull’s portfolio. Rakesh Jhunjhunwala held 5.1% of the company as of the end of March this year. Over Rs 9,500 crore is the estimated worth of his stake in the company.