Titan 2011 Results & Valuation

Titan Industries registerd excpetional growth in the current financial year 2011 with revenues going up by 40% to Rs. 6,521 crores and profits up by 57% to Rs. 641 crores. The company is expecting to clock a revenue of Rs. 8,200 crores.

If the company could achieve its revenue target it should clock a profit of approx Rs. 800 crores in FY-12.

At the CMP of Rs. 4,332 the stock is trading at a PE multiple of 24 times based on FY-12 expected earnings. The company commands a market cap of Rs. 19,230 crores at the current market price. 52 week High / low for the stock is 4475 / 2165.

The company has generated phenomenal return in last 3 years as stock has shown an appreciation of 280%.

The company has been doing very good financially since past few years and is expected to continue doing good. But any slowdown in the growth momentum would de-rate the stock's PE multiple which is currently on the higher side. So investors should be cautious and should keep track of the financial performance closely.