Rakesh Jhunjhunwala Stock: Down over 20% from recent high, can this Rakesh Jhunjhunwala stock stage recovery?

The stock hit a 52-week high of Rs 2,767.55 on March 21, 2022 and a 52-week low of Rs 1,661.85 on July 20, 2021. On Wednesday, it closed at Rs 2,128.50. With a market capitalization of over Rs 1,90,000 crore, the shares are trading below their short-term moving averages of 5, 10, 20, 50, 100 and 200-DMA.

Long-term investors have made huge gains by investing in this largecap stock as it has grown by over 900 percent in the last ten years. While the brokerage’s stance on the Tata group company remains unchanged, analysts see further selling pressure on the stock.

Ravi Singh, Vice President and Research Head, ShareIndia said that it is currently in overbought zone and any breakdown below the Rs 2,050 level could drag the stock towards Rs 1,950 in the near term. He said traders can refrain from taking any new long positions at the counter.

,titan share Currently trading at Rs 2,124. At current levels, we can expect some consolidation or volatility. Down move can be expected when stock closes below Rs 2,040, below which we have target of Rs 1,860. If it goes further down then it can reach Rs 1,793.

“Investors can deposit on downside as it is a value stock and will do well over the long term,” Dalmiya said.

However, Sharekhan has a ‘Buy’ call. 2,900 with a target price of Rs. The profitability of the jewelery business will continue to improve as margins remain stable, and watches and iCare are expected to see margin improvement, while new ventures will drive profitability in the coming years.

“Titan continues to be our top choice in the largecap consumption space in India, with strong earnings growth visibility and a compounded growth of 20% over the long term,” it said.

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“In the jewelry industry, which is organizing at a rapid pace, Titan is clearly at the fore among organized players in leading this growth. Its runway for growth is long, with a market share of just 6%. Others higher Unlike development categories, the competitive intensity of organized and unorganized competitors in jewelry is quite weak.”

The brokerage house has given a ‘Buy’ rating on the stock with a target price of Rs 2,900.

The company’s standalone profit declined 7.18 per cent year-on-year to Rs 491 crore for the quarter ended March 2022, from Rs 529 crore in the same quarter last year. Revenue from operating sales fell 3.46 per cent to Rs 6,749 crore in the quarter under review, as against Rs 6,991 crore in the same quarter last year.

Total income for the quarter stood at Rs 7,352 crore, a growth of 3 per cent as compared to Rs 7,169 crore in Q4 FY21. The board also recommended a dividend of Rs 7.5 per equity share.

Jhunjhunwala and his wife Rekha held 5.1 per cent stake in the Tata group company, which was valued at Rs 9,602 crore as of Thursday. An average price target of Rs 2,598 on the stock, as suggested by Trendline, indicates a potential 22 per cent rise over the counter.

Promoters held 52.9 per cent stake in the company as of March 31, 2022, while FIIs held 18.4 per cent, DIIs held 10.21 per cent.