InvestorQ : Is it true that Titan Has grown by over 50,000% in the last 20 years?
Khushi Patel made post

Is it true that Titan Has grown by over 50,000% in the last 20 years?

Dhwani Mehta answered.
3 weeks ago

That is absolutely true and in no portfolio is it more prominent than the portfolio of India’s start investor, Rakesh Jhunjhunwala. He has been holding Titan for a long time and it accounts for the biggest chunk of portfolio value, a classic example of the statement that money is not in buying and selling of stocks but in holding them. But the real impact of Titan is only visible if you look back in retrospect at the performance of Titan in last 20 years.

During the period since 2002, the stock of Titan has shot up from Rs4.03 to the current price level of Rs2138. That is not counting the dividends on the shares received during this period. That translates into returns of 53,000% return overall, While the CAGR returns would be much lower, it is still a substantial number and a classic example of how investing in the equities of quality companies can create tremendous value over the long run.

This is despite the fact that Titan has shed nearly 15% since the start of 2022, although in the overall scheme of things, it would not have made a very big difference. Forget about the 20 year period for the time being and just look at the last five years. Still, the stock of Titan is up by nearly five-fold from Rs516 to Rs2139 in last 5 years, which is once again a phenomenal return on the stock. In last 1 year the stock is still up by 23%.

IN other worlds, how much does this mean in money terms. If you had invested just Rs.10,000 in Titan in the year 2002, you would be sitting at close to Rs55 lakhs plus the annual dividend pay-outs to boot. That is a phenomenal piece of wealth creation over time. The Rakesh Jhunjhunwala family holds about 4.5 crore shares of Titan bought in phases along the way. You can just sit and calculate for academic purposes how much of wealth his family office would have created via Titan.