Titan Biotech Limited

Healthcare — Biotechnology · BSE

₹406.90+₹6.30 (+1.57%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Titan Biotech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Titan Biotech Limited engages in the manufacture and sale of biological products in India and internationally.

IndustryBiotechnology

SectorHealthcare

Employees527

Annual revenue₹206 Cr

How does it make money?

Turns over ₹206 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 527 employees supports ₹39.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin20.9%

Net margin14.5%

Revenue / employee₹39.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.7%

ROE16.5%

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +43% while net margin moved -16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect-16%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 49.6x is demanding — it needs sustained high growth to justify
✗ P/E is 104% above its own historical median of 24.4x — expensive by its own standards
✗ P/B of 9.26x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

49.6x

3Y Median

24.4x

40 monthly readings · mean 33.3x · range 11.7x–95.2x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 104% above its 3y median of 24.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 200% above the peer median of 16.5x.

vs. its own history

Expensive

24.4x median over 40 months · +104%

vs. sector peers

Expensive

16.5x median of 4 peers · +200%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

49.6x

P/B

9.26x

EV/EBITDA

39.2x

PEG

7.81

Dividend Yield

0.12%

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 33% over 3 years.
Cash generation is improving
Free cash flow is up 198% over 3 years.
High return on capital employed
ROCE of 20.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 22.6% to 16.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.1% to 20.7% — often a sign of competition or overexpansion.
Valuation above its historical average
At 49.6x the stock trades 104% above its own median of 24.4x.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 3.14x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 33% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.14x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 104% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 22.6% to 16.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was 27.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1,681 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.26x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8.2

Profitable

Profitable on a per-share basis

ROE

16.5%

Strong

Strong capital efficiency

ROCE

20.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.14x

High

High leverage

Revenue Growth (YoY)

27.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

58.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.12%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹406.9

Operating Margin

18.8%

Good

Healthy core-business profitability

Net Margin

15.5%

Good

Strong bottom-line conversion

Current Ratio

3.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.51

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

396.2 / 400.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹144 Cr	₹164 Cr	₹156 Cr	₹206 Cr	+12.7%
EBITDA	₹31 Cr	₹35 Cr	₹29 Cr	₹43 Cr	+11.2%
EBITDA Margin	21.7%	21.5%	18.3%	20.9%	—
PAT (Net Profit)	₹25 Cr	₹25 Cr	₹22 Cr	₹30 Cr	+6.4%
EPS	₹6.01	₹6.01	₹5.21	₹7.23	+6.3%
ROE	22.6%	18.6%	14.0%	16.5%	—
ROCE	25.1%	23.6%	15.9%	20.7%	—
Total Debt	₹9 Cr	₹8 Cr	₹3 Cr	₹6 Cr	-12.5%
Free Cash Flow	₹8 Cr	₹1 Cr	₹12 Cr	₹23 Cr	+43.9%

🟢 Revenue has grown at 12.7% a year over 3 years.

🟢 EBITDA has grown at 11.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 20.9% over 3 years.

🟢 PAT (Net Profit) has grown at 6.4% a year over 3 years.

🟢 EPS has grown at 6.3% a year over 3 years.

🔴 ROE has fallen from 22.6% to 16.5% over 3 years (-6.1 pts).

🔴 ROCE has fallen from 25.1% to 20.7% over 3 years (-4.4 pts).

🟢 Total Debt has shrunk at 12.5% a year over 3 years.

🟢 Free Cash Flow has grown at 43.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹214 Cr

Total Liabilities

₹32 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹30 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.1%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

4 positive2 general

453% return in 3 yrs: Multibagger stock declares bonus shares; do you own it? Check ratio, stock return and record date

Livemint, 16 Oct

Titan Biotech jumps 5% on 1:4 bonus issue, dividend announcements

Business Standard, 03 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bonus issue alert! Multibagger Titan Biotech announces its maiden 1:4 bonus issue

The Economic Times, 03 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Titan Biotech schedules 34th AGM for September 29, 2026

scanx.trade, 03 Sept

Titan Biotech Share Price Rises 7.53% To ₹279.95 On Record Date For 1:5 Stock Split

HDFC Sky, 20 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Titan Biotech Share Price Jumps 20% After 1:5 Stock Split | Stock Market Today Update

Samco, 20 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest9.3/20

🟡ProfitabilityModerate9.5/15

🔴ValuationDemanding3.3/15

🟡RiskModerate5.3/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year12.7% CAGR
✓EBITDA margin holds above 19%20.9%
✓Free cash flow remains positive₹23 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 18%20.7%