Titan glitters as LIC, Jhunjhunwala add more

KS Badri Narayanan Chennai | Updated on January 14, 2020 Published on January 14, 2020

Ace investor Rakesh Jhunjhunwala

India Cements builds on Damani’s stake hike

Shares of Titan Company and India Cements jumped after they published quarterly shareholding pattern for the December quarter, which reveals buying of big investors.

Titan Company saw Rakesh Jhunjhunwala increasing his stake in the company to 5.27 per cent from 5.1 per cent during the quarter, while his wife Rekha Rakesh Jhunjhunwala’s stake inched up to 1.42 per cent (1.41 per cent).

The Life Insurance Corporation of India also hiked its stake in Titan, which entered the Sensex pack on December 23, to 1.64 per cent from 1.02 per cent.

The stock of Titan Company hit a high of ₹1,168.5 after opening at ₹1,162 and closed at ₹1,166.80, up 0.65 per cent on the BSE. During the quarter, the stock moved in the range of ₹1,030-1,375.

For India Cements, ace investor Radhakishan S Damani has increased his holding in the company to 4.73 per cent from 1.3 per cent at the end of September quarter.

Shares of India Cements jumped 7.5 per cent to close at ₹86.6; intra-day they hit a high of ₹87.45.

Interestingly, promoter holding in the company dropped marginally to 28.24 per cent from 28.3 per cent. During the quarter, it moved between ₹68-90.

Festive season booster

Titan saw foreign institutional investors reduce their holding to 18.31 per cent from 18.77 per cent in the previous quarter, but small retail investors remained positive by hiking their stake to 9.38 per cent (9.18 per cent).

In a quarterly update on the December quarter, the company said jewellery sales had met the revised guidance, as the industry saw reasonable growth. Thanks to the festive season, it achieved a sales growth of 11 per cent with retail segment achieving nearly 15 per cent growth, it added. The company will declare its quarterly results on February 4. For the September quarter, it reported a PAT of ₹320.16 crore on revenues of ₹4,435 crore.

Though the jewellery segment was able to meet its guidance, especially in the tough macro conditions, analysts await signs of recovery in watch and eyeware segments.

India Cements: MFs cut stake

FPIs and MFs reduced their holding; FPIs’ holding slipped to 14.57 per cent (15.17 per cent) and MFs’ 11.1 per cent (14.89 per cent). Even LIC has reduced its holding by a whisker at 4.71 per cent (4.72 per cent).

On the contrary, small investors increased their holding to 15.29 per cent (14.33 per cent) and HNIs to 8.54 per cent (5.98 per cent).

Even as Radhakishan S Damani hiked his stake by 3.73 per cent, some high net worth individuals seemed to have exited or reduced their holding in India Cements.

Shares pledged by promoters remained at 27.22 per cent of their total shareholding in the company.

Analysts expect a muted growth from the cement sector, due to the general slowdown in the infrastructure and real estate.

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Published on January 14, 2020
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