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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500114 | NSE: TITAN

Fundamental Analysis of Titan Company Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:51 pm

Market Cap 3,05,101 Cr.
Current Price 3,436
High / Low3,887/2,882
Stock P/E87.3
Book Value 106
Dividend Yield0.32 %
ROCE22.7 %
ROE32.9 %
Face Value 1.00
PEG Ratio4.82

Competitors of Titan Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bhakti Gems & Jewellery Ltd 25.0 Cr. 16.625.2/11.032.0 15.60.00 %6.15 %3.88 % 10.0
Atlas Jewellery India Ltd 93.3 Cr. 9.279.80/9.27 16.30.00 %0.35 %0.33 % 10.0
Moksh Ornaments Ltd 79.8 Cr. 14.929.4/10.512.8 10.70.00 %14.9 %11.6 % 2.00
Kanani Industries Ltd 59.6 Cr. 3.017.55/2.9996.1 3.200.00 %1.75 %0.98 % 1.00
Deep Diamond India Ltd 19.3 Cr. 6.029.37/5.2048.2 6.370.00 %%% 1.00
Industry Average278.20 Cr107.5526.77122.880.17%11.86%11.04%6.50

Titan Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7,6197,4943,4737,49310,0377,7969,4439,16311,60910,36011,89712,52914,164
Expenses6,7716,6773,3366,5258,5957,0028,2477,91610,2629,27110,77211,11812,599
Operating Profit8488171379681,4427941,1961,2471,3471,0891,1251,4111,565
OPM %11%11%4%13%14%10%13%14%12%11%9%11%11%
Other Income405746555722446190114114125136
Interest51514951576165607996109140169
Depreciation96939510498102103106113119128144154
Profit before tax741730398681,3446531,0721,1421,2459881,0021,2521,378
Tax %28%22%54%26%25%19%26%27%27%26%25%27%24%
Net Profit530568186411,0125277908359137367569161,053
EPS in Rs5.916.350.237.2011.315.748.849.3610.188.228.4810.3111.86

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:23 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,84810,12310,92711,91311,27613,26116,12019,77921,05221,64428,79940,57548,950
Expenses8,0119,1099,88010,76110,33712,09714,47617,78518,58919,91925,45535,69343,760
Operating Profit8381,0141,0471,1539391,1641,6441,9942,4631,7253,3444,8825,190
OPM %9%10%10%10%8%9%10%10%12%8%12%12%11%
Other Income92991176769-4270178153180177306489
Interest4451878142385353166203218300514
Depreciation4656689098111131163348375399441545
Profit before tax8401,0061,0101,0498689731,5301,9572,1021,3272,9044,4474,620
Tax %28%28%27%22%22%28%28%29%29%27%24%26%
Net Profit6017257358166756971,1021,3891,4939742,1983,2743,461
EPS in Rs6.778.178.289.197.608.0112.7315.8216.9110.9624.4836.6138.87
Dividend Payout %26%26%25%25%29%32%29%32%24%37%31%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)20.63%1.38%11.02%-17.28%3.26%58.11%26.04%7.49%-34.76%125.67%48.95%
Change in YoY Net Profit Growth (%)0.00%-19.25%9.64%-28.30%20.54%54.85%-32.06%-18.56%-42.25%160.43%-76.71%

Growth

Compounded Sales Growth
10 Years:15%
5 Years:20%
3 Years:24%
TTM:29%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:30%
TTM:13%
Stock Price CAGR
10 Years:30%
5 Years:27%
3 Years:33%
1 Year:41%
Return on Equity
10 Years:24%
5 Years:25%
3 Years:25%
Last Year:31%

Last Updated: April 17, 2024, 1:40 am

Titan Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital89898989898989898989898989
Reserves1,3721,8812,4342,9953,4184,1445,0015,9816,5807,4089,21411,76212,320
Borrowings608071001131,8821,6912,3933,5625,6387,2759,36714,254
Other Liabilities3,2433,9142,7812,6842,7232,2932,7403,2473,3133,3094,6105,8026,269
Total Liabilities4,7105,8846,1115,8686,3428,4089,52111,71013,54416,44421,18827,02032,932
Fixed Assets3844646146997711,1891,4741,5672,6332,5232,5442,9983,466
CWIP254233551071524332183285144114
Investments233330431361081582,8242942,5154,667
Other Assets4,2995,3755,4615,1115,4346,6367,96810,00310,73511,06518,26521,36324,685
Total Assets4,7105,8846,1115,8686,3428,4089,52111,71013,54416,44421,18827,02032,932

Reserves and Borrowings Chart

Titan Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 163553-5555035761,712-511,243-3484,139-7241,370
Cash from Investing Activity -70-142-271-118-159-95398-797235-2,7991,165-1,814
Cash from Financing Activity -235-236497-1,005-505-166-252-489-242-1,234-403457
Net Cash Flow-142176-329-620-88594-206-43-3551063813

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow832.001.00-806.00-99.00826.000.000.00-1.00-1.00-4.00-4.00-5.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days656667856767
Inventory Days179175169198189185178195187230199176
Days Payable1023981743027231418221513
Cash Conversion Cycle8314294131165164163186176215191171
Working Capital Days7556278949999112113146121127
ROCE %62%42%35%27%23%25%26%24%13%21%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%
FIIs18.41%19.06%18.56%18.40%16.77%17.04%17.53%17.51%18.53%19.05%18.89%19.01%
DIIs9.87%10.10%10.29%10.21%11.26%11.71%11.14%11.23%10.46%9.87%10.25%10.29%
Government0.21%0.16%0.16%0.16%0.16%0.17%0.17%0.17%0.17%0.17%0.17%0.17%
Public18.61%17.78%18.09%18.33%18.91%18.17%18.26%18.19%17.93%18.00%17.77%17.57%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.08%
No. of Shareholders3,64,7293,91,3345,01,6145,78,2526,87,8106,66,3736,88,3777,19,1676,75,1936,99,6597,10,6467,49,319

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF7,543,0331.572733.91,070,4002024-06-20604.69%
SBI S&P BSE Sensex ETF5,321,1161.831931.221,070,4002024-06-20397.11%
Axis Bluechip Fund2,297,9372.55832.861,070,4002024-06-20114.68%
UTI Nifty 50 ETF2,102,4001.57761.991,070,4002024-06-2096.41%
UTI Flexi Cap Fund2,092,9873.07758.581,070,4002024-06-2095.53%
UTI S&P BSE Sensex ETF1,859,7081.83674.951,070,4002024-06-2073.74%
ICICI Prudential Balanced Advantage Fund1,468,3340.96532.181,070,4002024-06-2037.18%
Aditya Birla Sun Life Frontline Equity Fund1,070,4001.47387.961,070,4002024-06-200%
Canara Robeco Emerging Equities1,053,9281.88381.991,070,4002024-06-20-1.54%
HDFC Top 100 Fund - Regular Plan1,039,0641.19376.61,070,4002024-06-20-2.93%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)39.4036.6124.4910.9616.91
Diluted EPS (Rs.)39.3836.6124.4910.9616.91
Cash EPS (Rs.)45.8341.7329.1815.2120.78
Book Value[Excl.RevalReserv]/Share (Rs.)105.54133.75104.8784.2975.17
Book Value[Incl.RevalReserv]/Share (Rs.)105.54133.75104.8784.2975.17
Revenue From Operations / Share (Rs.)573.98455.90323.58243.19237.12
PBDIT / Share (Rs.)65.4558.2840.1721.4629.51
PBIT / Share (Rs.)58.8953.3335.6917.2525.59
PBT / Share (Rs.)51.9349.9532.6314.9723.72
Net Profit / Share (Rs.)39.2736.7824.7011.0016.86
NP After MI And SOA / Share (Rs.)39.2836.5224.4210.9316.91
PBDIT Margin (%)11.4012.7812.418.8212.44
PBIT Margin (%)10.2511.6911.027.0910.79
PBT Margin (%)9.0410.9510.086.1510.00
Net Profit Margin (%)6.848.067.634.527.10
NP After MI And SOA Margin (%)6.848.007.544.497.13
Return on Networth / Equity (%)37.2127.4223.3512.9722.51
Return on Capital Employeed (%)34.8934.4929.7317.5628.67
Return On Assets (%)11.0812.0210.255.9111.08
Long Term Debt / Equity (X)0.350.000.000.000.00
Total Debt / Equity (X)0.830.630.050.580.34
Asset Turnover Ratio (%)1.741.651.491.401.61
Current Ratio (X)1.551.691.661.711.80
Quick Ratio (X)0.390.430.360.620.35
Inventory Turnover Ratio (X)2.031.761.981.631.69
Dividend Payout Ratio (NP) (%)0.0020.4916.3336.4829.56
Dividend Payout Ratio (CP) (%)0.0018.0413.8026.3324.00
Earning Retention Ratio (%)0.0079.5183.6763.5270.44
Cash Earning Retention Ratio (%)0.0081.9686.2073.6776.00
Interest Coverage Ratio (X)9.4117.2916.409.4115.77
Interest Coverage Ratio (Post Tax) (X)6.6511.9111.335.8210.01
Enterprise Value (Cr.)344934.76230047.90224692.35142428.6084806.82
EV / Net Operating Revenue (X)6.755.677.806.584.03
EV / EBITDA (X)59.2244.3562.8574.5732.37
MarketCap / Net Operating Revenue (X)6.635.527.846.403.94
Retention Ratios (%)0.0079.5083.6663.5170.43
Price / BV (X)36.0518.8924.2618.4912.43
Price / Net Operating Revenue (X)6.635.527.846.403.94
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 3,054.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 11.11% compared to the current price 3436

Intrinsic Value: 3,607.43

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 4.99% compared to the current price ₹3436

Last 5 Year EPS CAGR: 18.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.92%, which is a positive sign.
  2. The company has higher reserves (5,731.54 cr) compared to borrowings (3,622.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (19.69 cr) and profit (207.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 92.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 156.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Titan Company Ltd:
    1. Net Profit Margin: 6.84%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.89% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 37.21% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.65
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.39
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 87.3 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.83
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Titan Company Ltd. is a Public Limited Listed company incorporated on 26/07/1984 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L74999TZ1984PLC001456 and registration number is 001456. Currently Company is involved in the business activities of Manufacture of watches and clocks. Company’s Total Operating Revenue is Rs. 27210.00 Cr. and Equity Capital is Rs. 89.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious Metails3, Sipcot Industrial Complex, Hosur Tamil Nadu 635126investor@titan.co.in
http://www.titancompany.in
Management
NamePosition Held
Mr. S KrishnanChairman
Mr. N N TataVice Chairman
Mr. C K VenkataramanManaging Director
Mr. Bhaskar BhatDirector
Ms. Jayashree MuralidharanDirector
Ms. Mariam Pallavi BaldevDirector
Dr. Mohanasankar SivapraksamIndependent Director
Ms. Sindhu GangadharanIndependent Director
Mr. Sandeep SinghalIndependent Director
Mr. Ashwani PuriIndependent Director
Mr. B SanthanamIndependent Director
Mr. Pradyumna VyasIndependent Director

FAQ

What is the latest fair value of Titan Company Ltd?

The latest fair value of Titan Company Ltd is ₹3054.24.

What is the Market Cap of Titan Company Ltd?

The Market Cap of Titan Company Ltd is 3,05,101 Cr..

What is the current Stock Price of Titan Company Ltd as on 21 June 2024?

The current stock price of Titan Company Ltd as on 21 June 2024 is ₹3,436.

What is the High / Low of Titan Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Titan Company Ltd stocks is 3,887/2,882.

What is the Stock P/E of Titan Company Ltd?

The Stock P/E of Titan Company Ltd is 87.3.

What is the Book Value of Titan Company Ltd?

The Book Value of Titan Company Ltd is 106.

What is the Dividend Yield of Titan Company Ltd?

The Dividend Yield of Titan Company Ltd is 0.32 %.

What is the ROCE of Titan Company Ltd?

The ROCE of Titan Company Ltd is 22.7 %.

What is the ROE of Titan Company Ltd?

The ROE of Titan Company Ltd is 32.9 %.

What is the Face Value of Titan Company Ltd?

The Face Value of Titan Company Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Titan Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE