Titan Intech Limited

Technology — Information Technology Services · BSE

₹0.93₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Titan Intech Limited provides digital transformation for IT infrastructure and business data in India.

IndustryInformation Technology Services

SectorTechnology

Employees95

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 95 employees supports ₹35.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹35.8 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 +131% while net margin moved +38% 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+131%

Margin effect+38%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.70 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

81/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

11.6x

3Y Median

13.3x

40 monthly readings · mean 10.3x · range 0.5x–25.9x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 13.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 30% below the peer median of 16.5x.

vs. its own history

Fair

13.3x median over 40 months · -13%

vs. sector peers

Cheap

16.5x median of 4 peers · -30%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.4x

PEG

0.25

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 20.9% to 35.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.3% to 3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.2% to 4.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 2448% over 3 years, from ₹0 Cr to ₹7 Cr.
🔴High leverageFinancial
Debt/Equity of 4.31x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 23.4x to 5.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 10139% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 20.9% to 35.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 30% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 4.31x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 10.3% to 3.1%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 24% a year✓ 32.2% CAGR
Latest reported year was 71.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 33%✓ 35.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 2 neutral · 5 weak

Market Cap

₹82 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.6x

Cheap

Cheap against the generic band

P/B Ratio

0.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

4.31x

High

High leverage

Revenue Growth (YoY)

71.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-50.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹26 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

15.0%

Good

Strong bottom-line conversion

Current Ratio

8.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.70

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.9 / 1.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹44 Cr	₹27 Cr	₹34 Cr	+32.2%
EBITDA	₹3 Cr	₹10 Cr	₹8 Cr	₹12 Cr	+57.3%
EBITDA Margin	20.9%	22.7%	29.9%	35.2%	—
PAT (Net Profit)	₹2 Cr	₹6 Cr	₹4 Cr	₹6 Cr	+47.2%
EPS	₹0.25	₹0.27	₹1.3	₹0.07	-34.5%
ROE	10.3%	12.2%	3.8%	3.1%	—
ROCE	12.2%	13.9%	4.5%	4.4%	—
Total Debt	₹0 Cr	₹2 Cr	₹3 Cr	₹7 Cr	+194.3%
Free Cash Flow	-₹7 Cr	-₹3 Cr	-₹49 Cr	-₹26 Cr	—

🟢 Revenue has grown at 32.2% a year over 3 years.

🟢 EBITDA has grown at 57.3% a year over 3 years.

🟢 EBITDA Margin has risen from 20.9% to 35.2% over 3 years (+14.3 pts).

🟢 PAT (Net Profit) has grown at 47.2% a year over 3 years.

🔴 EPS has shrunk at 34.5% a year over 3 years.

🔴 ROE has fallen from 10.3% to 3.1% over 3 years (-7.1 pts).

🔴 ROCE has fallen from 12.2% to 4.4% over 3 years (-7.8 pts).

🔴 Total Debt has grown at 194.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹192 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹62 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

18.9%

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

1 positive1 mixed4 general

Titan Intech Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Titan Intech - 12 penny stocks surge up to 125% in just 2 months; 2 turn multibaggers. Did you own any?

The Economic Times, 24 May

Titan Intech discloses AGM voting results; all resolutions passed

scanx.trade, 01 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Titan Intech standalone net profit rises 15.63% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Titan Intech stock price Jumps 5% to ₹2.37 After ₹49.14 Cr Rights Issue Approval

HDFC Sky, 31 Oct

Titan Intech fixes Sep 29 for 42nd AGM, sets book closure dates

scanx.trade, 28 Aug

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑