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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500114 | NSE: TITAN

Fundamental Analysis of Titan Company Ltd

About the Company - Titan Company Ltd

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
Diamond Cutting/Precious Metals/Jewellery3, 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

Titan Company Ltd. Share Price Update

Share PriceValue
Today₹3,691.25
Previous Day₹3,651.80

Basic Stock Data of Titan Company Ltd

Market Cap 3,27,766 Cr.
Current Price 3,692
High / Low3,887/2,320
Stock P/E95.0
Book Value 140
Dividend Yield0.27 %
ROCE25.1 %
ROE30.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Titan Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Parshva Enterprises Ltd 201 Cr. 200240/144743 10.60.00 %3.62 %2.12 % 10.0
PC Jeweller Ltd 2,516 Cr. 54.065.5/23.3 69.80.00 %5.33 %5.36 % 10.0
Tribhovandas Bhimji Zaveri Ltd (TBZ) 828 Cr. 124145/58.215.5 85.11.41 %9.30 %7.39 % 10.0
Rajesh Exports Ltd 9,834 Cr. 333715/29913.4 5160.30 %10.9 %10.5 % 1.00
Zodiac JRD MKJ LTD 47.2 Cr. 91.292.6/28.089.1 1360.00 %1.13 %0.99 % 10.0
Industry Average217.44 Cr160.44172.2163.50.34%6.06%5.27%8.2

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

Titan Company Ltd Quarterly Chart

Titan Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,84810,12310,92711,91311,27613,26116,12019,77921,05221,64428,79940,57546,395
Expenses8,0119,1099,88010,76110,33712,09714,47617,78518,58919,91925,45535,69341,423
Operating Profit8381,0141,0471,1539391,1641,6441,9942,4631,7253,3444,8824,972
OPM %9%10%10%10%8%9%10%10%12%8%12%12%11%
Other Income92991176769-4270178153180177306443
Interest4451878142385353166203218300424
Depreciation4656689098111131163348375399441504
Profit before tax8401,0061,0101,0498689731,5301,9572,1021,3272,9044,4474,487
Tax %28%28%27%22%22%28%28%29%29%27%24%26%
Net Profit6017257358166756971,1021,3891,4939742,1983,2743,321
EPS in Rs6.778.178.289.197.608.0112.7315.8216.9110.9624.4836.6137.19
Dividend Payout %26%26%25%25%29%32%29%32%24%37%31%27%

Titan Company Ltd 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%

Titan Company Ltd 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:32%
5 Years:28%
3 Years:32%
1 Year:45%
Return on Equity
10 Years:24%
5 Years:25%
3 Years:25%
Last Year:31%

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

Titan Company Ltd 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

Titan Company Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days765666785676
Inventory Days161179175169198189185178195187230199
Days Payable10610239817430272314182215
Cash Conversion Cycle628314294131165164163186176215191
Working Capital Days17556278949999112113146121
ROCE %69%62%42%35%27%23%25%26%24%13%21%25%

Titan Company Ltd Financial Efficiency Indicators Chart

Titan Company Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%52.90%
FIIs18.59%18.10%18.41%19.06%18.56%18.40%16.77%17.04%17.53%17.51%18.53%19.05%
DIIs10.86%11.13%9.87%10.10%10.29%10.21%11.26%11.71%11.14%11.23%10.46%9.87%
Government0.35%0.35%0.21%0.16%0.16%0.16%0.16%0.17%0.17%0.17%0.17%0.17%
Public17.30%17.53%18.61%17.78%18.09%18.33%18.91%18.17%18.26%18.19%17.93%18.00%
No. of Shareholders3,23,6143,55,7743,64,7293,91,3345,01,6145,78,2526,87,8106,66,3736,88,3777,19,1676,75,1936,99,659

Titan Company Ltd Shareholding Pattern Chart

No. of Titan Company Ltd Shareholders

Titan Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF77438521.592470.02
SBI S&P BSE Sensex ETF54545771.831739.33
Axis Bluechip Fund23764082.47757.99
UTI Flexi Cap Fund23178873.03739.32
ICICI Prudential Balanced Advantage Fund15438940.99492.45
Aditya Birla Sun Life Frontline Equity Fund10704001.48341.42
HDFC Top 100 Fund - Regular Plan10390641.29331.43
Canara Robeco Emerging Equities9439281.71301.08
Nippon India ETF Nifty 50 BeES8084181.59257.86
Aditya Birla Sun Life Flexi Cap Fund7400001.39236.03

Titan Company Ltd ROCE Trend

Titan Company Ltd EPS Trend

Titan Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)36.6124.4910.9616.9115.82
Diluted EPS (Rs.)36.6124.4910.9616.9115.82
Cash EPS (Rs.)41.7329.1815.2120.7817.50
Book Value[Excl.RevalReserv]/Share (Rs.)133.75104.8784.2975.1768.53
Book Value[Incl.RevalReserv]/Share (Rs.)133.75104.8784.2975.1768.53
Revenue From Operations / Share (Rs.)455.90323.58243.19237.12222.78
PBDIT / Share (Rs.)58.2840.1721.4629.5124.49
PBIT / Share (Rs.)53.3335.6917.2525.5922.66
PBT / Share (Rs.)49.9532.6314.9723.7222.07
Net Profit / Share (Rs.)36.7824.7011.0016.8615.67
NP After MI And SOA / Share (Rs.)36.5224.4210.9316.9115.82
PBDIT Margin (%)12.7812.418.8212.4410.99
PBIT Margin (%)11.6911.027.0910.7910.17
PBT Margin (%)10.9510.086.1510.009.90
Net Profit Margin (%)8.067.634.527.107.03
NP After MI And SOA Margin (%)8.007.544.497.137.09
Return on Networth / Equity (%)27.4223.3512.9722.5123.13
Return on Capital Employeed (%)34.4929.7317.5628.6732.16
Return On Assets (%)12.0210.255.9111.0811.98
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.630.050.580.340.39
Asset Turnover Ratio (%)1.651.491.401.611.82
Current Ratio (X)1.691.661.711.801.76
Quick Ratio (X)0.430.360.620.350.46
Inventory Turnover Ratio (X)1.761.981.631.691.87
Dividend Payout Ratio (NP) (%)20.4916.3336.4829.5623.70
Dividend Payout Ratio (CP) (%)18.0413.8026.3324.0021.24
Earning Retention Ratio (%)79.5183.6763.5270.4476.30
Cash Earning Retention Ratio (%)81.9686.2073.6776.0078.76
Interest Coverage Ratio (X)17.2916.409.4115.7741.39
Interest Coverage Ratio (Post Tax) (X)11.9111.335.8210.0127.47
Enterprise Value (Cr.)230047.90224692.35142428.6084806.82102319.50
EV / Net Operating Revenue (X)5.677.806.584.035.17
EV / EBITDA (X)44.3562.8574.5732.3747.06
MarketCap / Net Operating Revenue (X)5.527.846.403.945.11
Retention Ratios (%)79.5083.6663.5170.4376.29
Price / BV (X)18.8924.2618.4912.4316.64
Price / Net Operating Revenue (X)5.527.846.403.945.11
EarningsYield0.010.010.010.010.01

Titan Company Ltd Profitability Ratios (%)

Titan Company Ltd Liquidity Ratios

Titan Company Ltd Liquidity Ratios (%)

Titan Company Ltd Interest Coverage Ratios (X)

Titan Company Ltd Valuation Ratios

Fair Value / Intrinsic Value of Titan Company Ltd

Fair Value: ₹4107.46

The stock is undervalued by 11.25% compared to the current price ₹3692

*Investments are subject to market risks

Strength and Weakness of Titan Company Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 32.67%, 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 is trading at a high valuation with an average P/B ratio of 30.90 and average Dividend Yield of 10.15%.
  2. The stock has a high average Working Capital Days of 82.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 147.67, which may not be favorable.

Should I Buy Titan Company Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Titan Company Ltd:
    1. Net Profit Margin: 8.06%
      • 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: 34.49% (Industry Average ROCE: 9.23%)
      • 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. Interest Coverage Ratio (Post Tax): 11.91
      • 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.
    4. Quick Ratio: 0.43
      • 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.
    5. ✗ Stock P/E: 95.3 (Industry average Stock P/E: 34.86)
      • 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.
    6. ✓ Total Debt / Equity: 0.63
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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