Multibagger penny stock under Rs 20: Board announces 1:10 stock split and allots 8,00,000 shares on conversion of warrants!

Titan Intech Limited's Board has approved a significant restructuring of its capital, subject to shareholder approval. This includes increasing the Authorised Share Capital from Rs 55 crore to Rs 100 crore, effectively expanding the number of equity shares from 5.5 crore to 10 crore, each with a face value of Rs 10. Concurrently, the Board also approved a 1:10 stock split, subdividing each equity share of Rs 10 face value into ten equity shares of Re 1 face value, further altering the Capital Clause of the Memorandum of Association. Additionally, the company has completed the allotment of 8,00,000 equity shares to DAEVISH CLOTHING PRIVATE LIMITED and SINGLE POINT CONSULTANCY PRIVATE LIMITED, following the full conversion of their convertible equity share warrants.

In a strategic move to bolster its technological capabilities, Titan Intech has capitalised Rs 4.5 crore of Research & Development (R&D) expenditure incurred in Q1 FY25-26 for its "3D Display & AI-Integrated Educational Platforms" project. This initiative focuses on developing next-generation immersive education solutions, integrating 3D content, AI-enabled embedded systems, and multi-format 2D & 3D display hardware. The project, which targets various educational sectors including engineering and medical, has already seen successful pilot deployments, notably at MIC College of Technology, demonstrating enhanced student engagement and teaching efficiency. The company plans future capitalisation of Rs 10-15 crore for this project in FY25-26, with an amortisation period of 7 years, positioning itself as an early mover in the EdTech, AI, and immersive learning space.

About the Company

Established in 1984, Titan Intech Ltd (TIL) has emerged as a leading player in the realm of IT and data centre solutions. Initially focused on manufacturing threads, TIL strategically shifted its focus to the IT sector, forming alliances with industry experts. Today, the company offers a comprehensive range of services, including cloud solutions, disaster recovery, managed services and robust security measures.

TIL's commitment to excellence is evident in its diverse clientele, which includes prominent names such as Ajel Limited, Bridgetown Consulting Group, and Global Data Tek. By providing reliable and efficient IT infrastructure and data centre solutions, TIL has earned the trust and loyalty of its customers, solidifying its position as a trusted partner in the industry. In Q1FY26, the company reported net sales of Rs 4.97 crore and net profit of Rs 0.64 crore.

On Friday, shares of Titan Intech Ltd plunged 0.06 per cent to Rs 17.72 per share from its previous closing of Rs 17.73 with an intraday high of Rs 18.25 and an intraday low of Rs 17. The stock’s 52-week high is Rs 49.29 and its 52-week low is Rs 11.32. The shares of the company have a PE of 13.3x whereas the industry PE is 33x. The company has a market cap of over Rs 50 crore. From Rs 1.85 to Rs 17.72 per share, the stock gave multibagger returns of over 850 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.