Recommendation : BUY
January 28, 2010.
Titan Industries Ltd. did an Income from Operations worth Rs. 1954.59 crores. The Consumption of Materials as %age of Sales decreased significantly to 63% to 1235.91 crores from 70% at 935.74 crores in the same quarter last year. Purchase of Traded Goods as %age of Sales rose sharply to 12% at 239.37 crores from 8% at 101.21 crores in the same quarter the last year. Tax Expenses climbed to 3% at 59.08 crores as %age of Sales from 1% at 19.93 crores in the same quarter last year.
Operating Profit Margin of Titan Industries Ltd. is coming out to be 11% at 208.31 crores vs 7% at 93.42 crores for the same quarter last year.
The percentage breakdown of Quarterly Statement of Titan Industries Ltd. is given below.
Total Assets per Share of Titan Industries Ltd. is coming out to be Rs. 227.45. Earning per Share of Titan Industries Ltd. for the past four quarters is coming out to be Rs. 87.64. Current Price of the scrip is Rs. 3420. Trailing P/E of the company is coming out to be 39.02.
Equity Section believes that there is remarkable improvement in Sales of Titan Industries Ltd. both on Q-o-Q front as well as Y-o-Y front. There has been a remarkable increase in Consumption of Materials and decrease in Purchase of Traded Goods as compared to September quarter this financial year. This indicates both towards increase in Raw material prices and enhanced manufacturing capabilities and capacities. With improved Cash Conversion Cycle and an expected ROCE of 56% for the current financial year, the Capital Employed in Jewellery section of Titan Industries Ltd. is being shown in negative in December quarter's results. In view of all these points, Equity Section continues with the BUY recommendation of Titan Industries Ltd. as given in the previous analysis "Titan Industries Ltd - An Analysis."
Disclaimer : Equity Section holds this scrip. Titan Industries Ltd. is a part of Equity Section WatchList.
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