Titan Company's intrinsic value using Intellectual Capital analysis

Titan Company

BSE : 500114

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NSE : TITAN

Industry : Diversified

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ISIN : INE280A01028

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FreeFloat : 50.00%

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FnO : Yes

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LotSize : 750

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Quality Low Volatility 30 | BSE Cons Durables | Nifty Consumer Durables | BSE Dividend Stability | Nifty100 Alpha 30 | Nifty100 Quality 30 | Nifty200 Quality 30 | BSE 100 ESG | BSE CARBONEX | BSE GREENEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE India Manufacturing | Nifty India Consumption

Intellectual Capital (IC)	2,552.26
Net Worth (NW)	6,230.31
Intrinsic Worth (IW)	8,782.57
Market Cap (MC)	84,326.37
Economic Value Added	-589.02

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	29.06%
IC Gross Margin (EBITDA/IC)	77.18%
IC Net Margin (NPT/IC)	31.50%
Knowledge Turnover (Sales/IC)	7.20
Market to Intrinsic Value (MC/IW)	9.60

As Of	Intrinsic Value	Market Price
30 Jun 2020	Rs. 98.93	Rs. 949.85
23 Oct 2020	-	Rs. 1,241.70

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : No	Sell	10 DMA : Rs. 1,232.40	Buy	Hold
KB > 50% : No		50 DMA : Rs. 1,171.61
0 < M2IV < 1 : No		Vol-Price trend : Rising

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Sep-17
C
3473.07
3517.70
398.08
367.05
396.51
277.64
277.93

Dec-17
C
4274.84
4296.16
443.74
408.82
397.90
281.98
312.63

Mar-18
C
4107.22
4125.69
448.24
412.29
395.58
304.41
315.57

Jun-18
C
4451.03
4487.16
518.53
477.79
466.90
328.15
385.65

Sep-18
C
4567.23
4595.13
796.23
753.44
739.95
301.11
308.55

Dec-18
C
5839.82
5934.11
653.76
615.29
599.62
411.09
326.08

Mar-19
C
4888.77
4945.06
504.86
464.02
451.53
348.30
380.79

Jun-19
C
5151.09
5208.17
629.58
553.63
519.78
363.74
281.02

Sep-19
C
4661.59
4693.34
551.44
469.24
424.38
311.65
378.31

Dec-19
C
6527.36
6550.05
780.69
692.96
648.24
474.20
364.39

Mar-20
C
4711.50
4753.21
654.07
551.99
509.25
343.07
234.72

Jun-20
C
1979.00
2020.00
-216.00
-309.00
-361.00
-297.00
-448.00

* C - Consolidated, S - Standalone