Company Snapshot

#3
Investment Rationale
#5
Stable & Improving Returns
#6
Financial Analysis
#7
Shareholding Percentage
#8
SWOT Analysis
#9
 Company Snapshot
•Total Weightage % in Portfolio = 6% Business : Incorporated in 1992, Titan BioTech Limited is one of the leading
manufacturers and exporters of the biological products used in the field of
•Best Buying Range = Buy 4% between Rs 170-190 and Pharmaceutical, Nutraceutical, Food and beverages, BioTechnology and
add 2% if price comes down to Rs 150-160 range. Fermentation, Cosmetic, Veterinary and animal feed, Agricultural industry,
Microbiology culture media and plant issue culture media etc.
•Price Target = Around Rs 350-400 in next 12-18 months,
Rs 1000 in next 3-4 years and 10x in next 5-6 years. Management : Titan Biotech Limited is led by Mr. Suresh Chand Singla and
Mr. Naresh Kumar Singla for almost three decades. Titan Biotech Limited has a
Current Market Price (INR) – 186 (18th March’ 2021)
vast variety of product range, reaching approx. 2500 in numbers.
BSE - 524717
Mission: For over 25 years, their mission is to provide the highest quality
Bloomberg Code – TTM:IN products and exceptional customer service whilst providing a broad range of
biotechnological products. They wish to become one of the benchmark
Market Cap (INR Cr.) – 147 manufacturer and supplier across the world, recognized for its superior product
quality and sustainability, in addition to never disappointing the customers.
52 Week High / Low – 215.00 / 27.25

Promoter’s Holding – 54.24 Valuation: The company is currently available at a P/BV of 3.52, compared to
its last year P/BV of 0.9 .
Pledged Percentage - 0%
Company Snapshot (Contd.) 3C
Capitals
Investment Current Price is less than the
Intrinsic Value
Rationale

Stock has been generating Stock offers god dividend

better return on equity than returns
bank FD

Stock not in ASM/GSM lists

Good time to consider, as stock
and not a lot of promoter
is not in overbought zone
holding is pledged
Stable & Improving Returns

Return on Equity
TITAN BIOTECH LIMITED SUN PHARMA CIPLA DR. REDDY Return On Asset
TITAN BIOTECH SUN PHARMA CIPLA DR. REDDY

20 14
18.65
18
12 11.8
11.2
16

14 13.64 10

12
8 7.56
7.11
10 9.069.46
6
8

6 4
4
2
2

0 0
12 Months 12 Months
Financial Analysis
  FY16 FY17 FY18 FY19 FY20
Sales (INR Cr.) 46 53 57 65 79
Operating Profit (INR Cr.) 4 5 7 9 13
Operating Profit Margins (%) 9% 10% 12% 14% 17%
Net Profits (INR Cr.) 2 2 3 4 7
Net Profit Margins (%) 3.77 4.45 4.32 5.28 8.92
Earning per share (INR) 2.29 2.82 3.28 4.26 8.56
Debt to Equity 0.53 0.95 1.01 0.66 0.45

1. Revenues of the company has grown at a CAGR of 14.48% during FY2016-20.

2. Operating profit has grown at a CAGR of 34.27% and Net profit has grown 36,78%.
3. EPS has grown at a CAGR of 39.05%.
4. Cash flow from operating activity has been volatile but positive.
 Shareholding Percentage

1. Promoter Shareholding: The current shareholding of promoters is 54.24(December 2020). It has increased from 49%
(approx.) in June 2019 to 54%(approx.) in December 2019.
2. Shareholder communication: Adequate
3. Pledged Shares: Nil
 Weaknesses:
1. Companies with growing costs YoY for long term
projects.
2. Decline in Net Profit with falling Profit Margin (QoQ).
3. Declining profits every quarter for the past 2 quarters.
4. Declining Net Cash Flow : Companies not able to
Strengths: generate net cash.
1. Company with high TTM EPS Growth.
2. Company with Zero Promoter Pledge.
3. Annual Net Profits improving for last 2 Opportunities:
years. 1. Companies with current TTM PE Ratio less
4. Strong Annual EPS Growth. than 3 Year, 5 Year and 10 Year PE.
5. Efficient in managing Assets to generate 2. Highest Recovery from 52 Week Low.
Profits - ROA improving since last 2 3. Profit making Companies with High ROCE
years. and Low PE.
6. Growth in Quarterly Net Profit with 4. Stock with Low PE (PE < = 10).
increasing Profit Margin (YoY). 5. Insiders bought stocks.
7. Strong cash generating ability from core
business - Improving Cash Flow from
operation for last 2 years.
8. Recent Results : Growth in Operating
Profit with increase in operating margins
(YoY). There Are No Threats to this Company
9. Effectively using Shareholder’s fund -
Return on equity (ROE) improving since
last 2 years.
10. Strong cash generating ability from core
business - Improving Cash Flow from
operation for last 2 years.