In a sudden jolt to the markets, Titan Company Limited, one of India’s most celebrated consumer brands, witnessed a sharp 5.5% fall in its share price following a disappointing Q1 business update. The decline not only rattled investors but also erased a staggering ₹900 crore from the portfolio of the late Rakesh Jhunjhunwala, whose family continues to hold a significant stake in the Tata Group-backed jewellery and lifestyle major.
Q1 Update Fails to Spark Investor Confidence
Titan’s business update for the quarter ending June 2025 reflected subdued performance across key verticals, especially in jewellery—the company’s bread and butter. While revenue growth remained positive year-on-year, the numbers fell short of street expectations, triggering a sell-off.
The company reported mid-single-digit growth in jewellery and sluggish momentum in watches and wearables. Analysts pointed out that delayed wedding season demand, weaker discretionary spending, and inventory build-up post the festive season might have contributed to the underwhelming Q1 snapshot.
“Titan’s Q1 update suggests a slowdown in consumer sentiment, especially in the premium discretionary space. The market was pricing in stronger momentum,” said a Mumbai-based analyst at a leading brokerage firm.
Titan Stock Nosedives, Big Bull’s Portfolio Bleeds
Titan’s share price slipped over 5.5% intraday, marking one of its steepest single-day declines in recent months. From a high of ₹3,625, the stock dropped to ₹3,425 on the NSE, before slightly recovering by market close.
For the Jhunjhunwala family, this translated into a massive notional loss. As of the latest shareholding pattern, Rare Enterprises—the family’s investment arm—holds approximately 5.4% stake in Titan, making it one of their most prized holdings.
With Titan’s market capitalization shrinking by nearly ₹25,000 crore in a day, the Jhunjhunwala family’s stake lost close to ₹900 crore in value. Despite the hit, Titan remains a cornerstone of their investment legacy.
Analyst View: A Temporary Blip or Structural Concern?
While the Q1 update sparked short-term volatility, most analysts remain cautiously optimistic about Titan’s long-term prospects.
“This is more of a sentiment-driven correction. Titan has a strong brand, diversified portfolio, and solid management. But premium retail is cyclical, and Q1 reflects that,” said Pooja Bansal, Senior Equity Strategist at CapitalX Advisors.
Brokerages like Motilal Oswal and ICICI Securities have maintained a ‘Buy’ rating, but revised their near-term targets slightly downward, citing near-term demand softness and valuation concerns.
Titan’s Response and Road Ahead
Titan, in its update, highlighted that retail expansion and new collection launches remain on track. The company is expected to focus on festive-season buildup in Q2, especially with key cultural and wedding events lined up in the latter half of the year.
The management also hinted at enhancing product innovation and increasing marketing intensity to capture demand recovery.
Jhunjhunwala Legacy: Built on Conviction, Not Panic
Rakesh Jhunjhunwala, fondly known as the “Big Bull of Dalal Street,” famously picked up Titan stock in the early 2000s at under ₹50 per share—a bet that turned into one of the most legendary wealth-creation stories in Indian markets.
Despite Titan’s recent stumble, his family has not shown signs of trimming their stake, reinforcing their long-term conviction in the brand. As per sources, Rare Enterprises remains “unfazed” by short-term fluctuations and believes in Titan’s structural growth story.
Market Implications: Caution Amid High Valuations
Titan’s Q1 stumble is being seen as a cautionary tale in an overheated market, especially in premium consumer segments. Investors are now watching closely for management commentary during the full quarterly earnings announcement later this month.
For the broader market, the correction in a heavyweight like Titan also acts as a reality check—reminding investors that valuations need earnings support in a climate of rising interest rates and unpredictable consumer behavior.
Final Word
The sharp dip in Titan’s stock may have knocked off hundreds of crores from portfolios—including that of one of India’s most respected investing families—but the long-term thesis remains intact for many.
Whether this correction proves to be a temporary hiccup or a sign of deeper demand concerns, only time will tell. For now, Titan is down, but not out—and the Big Bull’s legacy of patience and conviction will be tested yet again.
ALSO READ : India’s Manufacturing Marvels: Top 10 Companies Powering Progress
Last Updated on Thursday, July 10, 2025 12:28 pm by Muthangi Anilkumar
About The Author
