Rekha Jhunjhunwala, widow of the late investor Rakesh Jhunjhunwala, faced a significant setback on Monday as her investment in Titan Company took a hit, resulting in a loss of over ₹800 crore.
Titan, a prominent Tata group company, had been one of the Jhunjhunwalas' major investments, with Ms. Jhunjhunwala holding a 5.35% stake in the firm as of March 31, 2024. Her holdings were valued at ₹16,792 crore at the close of trading on Friday.
However, Titan's shares plummeted over 7% on Monday following disappointing March quarter earnings, causing Ms. Jhunjhunwala's investment to suffer a significant decline in value. The stock hit a low of ₹3,352.25 during the day and closed at ₹3,281.65 on the Bombay Stock Exchange.
This decline pushed the company's market capitalization below the ₹3 lakh crore mark to ₹2,91,340.35 crore, resulting in a loss of over ₹22,000 crore.
As a result of this decline, the value of Ms. Jhunjhunwala's stake in Titan decreased to around ₹15,986 crore, according to source.
Despite Titan's reported 5% increase in consolidated profit after tax (PAT) to ₹771 crore for the March quarter compared to the previous year, its share price suffered due to certain factors including a jewelry margin miss and higher subsidiary loss, as noted by a report from Emkay Research.
Comments