Rakesh Jhunjhunwala’s Wife Loses ₹ 800 Crore As Her Biggest Stock Bet Tanks
Rekha Jhunjhunwala, the wife of late investor Rakesh Jhunjhunwala, lost over ₹ 800 crore on Monday as the shares of the Titan Company posted a big decline.
Titan, a Tata group company, has been the Jhunjhunwalas’ biggest bet. Ms Jhunjhunwala reportedly holds a 5.35% stake in the firm, as of March 31, 2024. Her holding was worth ₹ 16,792 crore per Friday’s closing.
She suffered a big loss on Monday as Titan shares tanked over 7% after its March quarter earnings failed to cheer up the investors.
The shares hit a low of ₹ 3,352.25 during the day and closed at ₹ 3,281.65 on the Bombay Stock Exchange. As a result, the company’s net value fell below the ₹ 3 lakh crore-mark to ₹ 2,91,340.35 crore, wiping out over ₹ 22,000 crore from its market cap.
The decline reduced the worth of Ms Jhunjhunwala’s Titan stake to around ₹ 15,986 crore, according to Hindustan Times.
In its latest earnings report, the company posted a 5% rise in its consolidated profit after tax (PAT) to ₹ 771 crore for the March quarter compared to a PAT of ₹ 736 crore in the year-ago period.
Titan’s total income increased to ₹ 11,472 crore in Q4 from ₹ 9,419 crore in the same period during the previous fiscal. The firm posted a consolidated PAT of ₹ 3,496 crore for the previous fiscal, compared with ₹ 3,274 crore in FY23. The company’s total income for FY24 stood at ₹ 47,501 crore over ₹ 38,675 crore in the 2022-23 fiscal.
“Titan’s Q4 PAT missed estimates by 10-12 per cent, due to 70-100 bps jewelry margin miss and higher subsidiary loss,” said a report by Emkay Research.