While Rakesh Jhunjhunwala’s favourite stock Titan is a known multi-bagger, another jewellery stock has emerged as the street’s darling in the last week.
While Rakesh Jhunjhunwala’s favourite stock Titan is a known multi-bagger, PC Jeweller shares have emerged as the street’s darling in the last week. Notably, PC Jeweller shares have returned a whopping 54% in the four sessions alone. PC Jeweller shares closed at Rs 145.50 on BSE yesterday. The gains in the shares come after foreign investment firm Carlina bought 37 lakh shares on April 10 for Rs 35 crore.
Notably, the same company bought 46.5 lakh shares of PC Jeweller again on April 14 aggregating to Rs 46 crore, taking its stake to over 2 percent, CNBC TV18 reported. Since April 1, the stock has zoomed nearly 80% to current levels.
In August 2018, rating agency Crisil had downgraded PC Jeweller’s rating on the bank facilities of the firm. Notably, the firm’s shares had plunged after PC Jeweller cancelled its share buyback programme, as its bankers refused to issue a no-objection certificate for the buyback.
Meanwhile, Rakesh Jhunjhunwala has pared stake in his favourite scrip Titan in the latest quarter to 5.72% from 5.78% as of end of December. His wife Rekha Jhunjhunwala’s stake has risen marginally to 1.32% during the same period, data from BSE showed.
Interestingly, Titan achieved a major feat last month with the firm crossing the Rs 1 lakh crore market capitalisation. The stock has been a major outperformer in the recent times, surging more than 20% since January this year. According to the company’s January-March pre-result update, Titan is aiming a 20% revenue growth in fiscal 2019-20 (April-March). “Growth has now become broad-based across divisions, reflecting our ability to adapt and recraft according to market needs,” the Tata Group firm said in its quarterly update on the stock exchanges.
Taking stock of Titan’s commentary, Prabhudas Lilladher said that FY19 revenues grew by ~21% despite increase in gold prices and muted Jewellery demand. “For 4Q19, we estimate 19.5% Jewellery sales growth and 13.5% volume growth led by sustained market share gains” the research and brokerage firm noted in its report. The firm has maintained a ‘Buy’ call on the shares with a target share price of Rs 1,195. “We remain positive on the long term structural story and estimate 25.8% Adj. PAT CAGR over FY19-21 to arrive at a target price of 1195 (45xDec20EPS),” Prabhudas Lilladher added.