The shares of this microcap company rose approximately 4 percent in Monday’s trading session following the announcement of a Memorandum of Understanding (MoU) to acquire a 26 percent stake in Kakatiya Energy Systems Private Limited.
Price Movement:
With a market capitalization of Rs. 98 crores, the shares of Titan (NS:TITN) Intech Ltd (BO:TITE) started Monday’s trading session on a higher note at Rs. 40.79 compared to its previous close of Rs. 40.05. During the trading session, the shares hit a high of Rs. 41.87, gaining around 4 percent and are currently trading at Rs. 39.53 apiece.
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What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had entered a strategic Memorandum of Understanding (MoU) with Kakatiya Energy Systems Private Limited (KES) to acquire a 26 percent stake in the company.
This collaboration represents a major advancement for Titan Intech, as it seeks to broaden its product portfolio to include advanced lighting controls, solar products and solutions, energy storage systems, IoT technologies, and smart city infrastructure, complementing its current emphasis on IT and data centre solutions.
Furthermore, this collaboration will also support multiple sectors, such as education, power, cement, and oil and gas. KES will focus on marketing and research and development (R&D), continuously launching new products for both the Indian and export markets, while Titan Intech will prioritize production through its upcoming EMS facilities and provide operations and maintenance (O&M) services.
Moreover, this partnership significantly enhances Titan Intech’s ability to fulfil an Rs. 360 crore order as an implementation partner for OBEL Systems Pvt Ltd., focusing on weather monitoring systems.
Additionally, Titan Intech has secured forthcoming Rs. 22 crore orders from KES for Centralized Control and Monitoring Systems (CCMS).
According to the company’s filing, the timing of this partnership coincides with the Indian government’s recent announcement of a Rs. 70,000 crores allocation for similar projects under Prime Minister Fasal Bima Yojana.
This positions Titan Intech well to take advantage of emerging opportunities in the energy sector, enabling it to deliver cutting-edge systems across the country.
Financials:
Looking at Titan Intech Ltd’s financial statements, the revenue decreased by 64 percent from Rs. 13.48 crores during the March quarter to Rs. 4.82 crores in the June quarter. On the other hand, the net profits declined by 76 percent from Rs. 1.90 crores to Rs. 45 lakhs during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 16.78 percent and a return on capital employed (RoCE) of 13.86 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 12.77 percent.
Recent Development:
The Board of Directors of Titan Intech have decided to establish a comprehensive Electric Manufacturing Services (EMS) facility that includes both Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) capabilities. The entire project is estimated to cost around Rs 550 crores.
This initiative aims to showcase the company’s manufacturing capabilities, foster innovation, and meet diverse customer demands within the Make in India and Digital India programs. The primary focus will be on Chip on Board mini-LED backlighting for the Railways and Defence sectors in both Indian and global markets.
The facility will specialize in manufacturing LCD-LED panels, railway displays, and coach lighting, while also offering OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) services specifically tailored for the railway and defence industries.
Company Profile:
Titan Intech Ltd is a company that specializes in data centre solutions and IT infrastructure services, having transitioned from its original focus on manufacturing sewing and industrial threads.
It designs and implements advanced data center facilities tailored to enhance data processing and management for organizations, while also offering comprehensive IT infrastructure services to help businesses innovate and adapt to technological changes. Additionally, Titan Intech manufactures LED lighting products, further diversifying its portfolio.
Written By Vaibhav Patil
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