Rekha Jhunjhunwala, the wife of the late investor Rakesh Jhunjhunwala, encountered a significant setback on Monday, losing over ₹800 crore. This loss stemmed from a sharp decline in the shares of Titan Company, which stands as the biggest investment for the Jhunjhunwala family. Titan, a part of the Tata group, has been a cornerstone of their portfolio. Rekha Jhunjhunwala reportedly holds a 5.35% stake in Titan as of March 31, 2024. However, this stake suffered a substantial devaluation compared to the previous Friday’s closing, indicating the severity of the decline in Titan’s share price.
The substantial drop in Titan’s share value has translated into a significant financial hit for Rekha Jhunjhunwala. Her holdings in the company were valued at a staggering ₹16,792 crore as of the previous week’s close. However, with the recent downturn, the value of her stake in Titan has plummeted, marking a notable loss for one of the leading figures in India’s investment landscape. This event underscores the inherent volatility and risks associated with the stock market, even for seasoned investors like the Jhunjhunwalas.
Rekha Jhunjhunwala experienced a significant setback on Monday as Titan shares plummeted over 7%. This decline followed disappointing March quarter earnings that failed to uplift investor sentiment, resulting in substantial losses for stakeholders like Jhunjhunwala
During trading hours, Titan shares reached a low of ₹3,352.25 and closed at ₹3,281.65 on the Bombay Stock Exchange. Consequently, the company’s market capitalization dropped below the ₹3 lakh crore mark to ₹2,91,340.35 crore, resulting in a loss of over ₹22,000 crore from its market value.
This decline also affected the value of Ms. Jhunjhunwala’s stake in Titan, reducing it to approximately ₹15,986 crore, as reported by Hindustan Times. In its recent earnings report, the company revealed a 5% increase in its consolidated profit after tax (PAT) to ₹771 crore for the March quarter, compared to ₹736 crore in the corresponding period last year.
In the fourth quarter (Q4), Titan’s total income surged to ₹11,472 crore from ₹9,419 crore in the corresponding period of the previous fiscal year. The firm reported a consolidated profit after tax (PAT) of ₹3,496 crore for the previous fiscal, compared to ₹3,274 crore in FY23. Additionally, Titan’s total income for FY24 reached ₹47,501 crore, marking a significant increase from ₹38,675 crore in the 2022-23 fiscal year.
According to a report by Emkay Research, Titan’s fourth-quarter profit after tax (PAT) fell short of estimates by 10-12%. This shortfall was attributed to a 70-100 basis points (bps) jewelry margin miss and increased subsidiary losses