Titagarh Rail Systems shares zoomed 407% in a year; can the upward momentum sustain?
Titagarh Rail Systems share price: On technical setup, the counter's 14-day relative strength index (RSI) came at 79.29. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 54.44. It has a price-to-book (P/B) value of 6.43.
- Jun 22, 2023,
- Updated Jun 22, 2023 8:57 PM IST
Shares of Titagarh Rail Systems Ltd have railled 406.97 per cent in the last 12 months. The stock on Thursday rose 2.40 per cent to settle at Rs 480.10, just 3.67 per cent away from its 52-week high of Rs 498.40, touched a couple of sessions back on June 20. Around 1.01 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 1.21 lakh shares. Turnover on the counter stood at Rs 4.88 crore, commanding a market capitalisation (m-cap) of Rs 5,740.61 crore.
Antique Stock Broking has initiated coverage on the stock with a 'Buy' rating. The domestic brokerage has given a target price of Rs 694. Titagarh Rail, a leader in the wagon manufacturing space, is now among India's few integrated manufacturers of passenger rail systems, Antique said.
The company has created a manufacturing setup which is difficult to replicate and has the capacity to grow its turnover to over Rs 9,000-10,000 crore over the next five years, the brokerage added.
"We expect Titagarh Rail Systems (TRSL) to post earnings CAGR (compounded annual growth rate) of 53 per cent over FY23-26, and generate an average RoE (Return on Equity) of over 25 per cent. Recently, TRSL in a consortium with BHEL, won a prestigious order to supply 80 Vande Bharat trains to the Indian Railways, valued at Rs 12,000 crore (including a 35-year maintenance contract)," Antique further stated.
Titagarh Rail has an investment plan of Rs 600 crore over the next three years and has recently proposed to raise Rs 289 crore through the issue of equity shares to a large investor on preferential basis.
Antique believes that the investment plan and expected strong cash flow generation in the next few years would support the company to meet its growth objectives. It said that given the growth potential beyond FY25E, superior returns and the company's management quality, valuations are very attractive, and provide a long-term wealth creation opportunity.
On technical setup, the counter's 14-day relative strength index (RSI) came at 79.29. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 54.44. It has a price-to-book (P/B) value of 6.43.
Titagarh Rail has a one-year beta of 0.87, indicating low volatility.
As of March 2023 quarter (Q4 FY23), promoters held 47.83 per cent stake in the firm and public shareholders owned 52.17 per cent of the company.
Titagarh Rail, formerly known as Titagarh Wagons, is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal.
Meanwhile, Indian equity benchmarks witnessed some correction today after closing at record levels in the previous session. The domestic indices slipped as financials, banks, consumer, technology, automobile and energy stocks dragged.
Also read: Alok Industries shares jump 8% amid high volume; stock of RIL-promoted firm up 44% in 30 days
Shares of Titagarh Rail Systems Ltd have railled 406.97 per cent in the last 12 months. The stock on Thursday rose 2.40 per cent to settle at Rs 480.10, just 3.67 per cent away from its 52-week high of Rs 498.40, touched a couple of sessions back on June 20. Around 1.01 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 1.21 lakh shares. Turnover on the counter stood at Rs 4.88 crore, commanding a market capitalisation (m-cap) of Rs 5,740.61 crore.
Antique Stock Broking has initiated coverage on the stock with a 'Buy' rating. The domestic brokerage has given a target price of Rs 694. Titagarh Rail, a leader in the wagon manufacturing space, is now among India's few integrated manufacturers of passenger rail systems, Antique said.
The company has created a manufacturing setup which is difficult to replicate and has the capacity to grow its turnover to over Rs 9,000-10,000 crore over the next five years, the brokerage added.
"We expect Titagarh Rail Systems (TRSL) to post earnings CAGR (compounded annual growth rate) of 53 per cent over FY23-26, and generate an average RoE (Return on Equity) of over 25 per cent. Recently, TRSL in a consortium with BHEL, won a prestigious order to supply 80 Vande Bharat trains to the Indian Railways, valued at Rs 12,000 crore (including a 35-year maintenance contract)," Antique further stated.
Titagarh Rail has an investment plan of Rs 600 crore over the next three years and has recently proposed to raise Rs 289 crore through the issue of equity shares to a large investor on preferential basis.
Antique believes that the investment plan and expected strong cash flow generation in the next few years would support the company to meet its growth objectives. It said that given the growth potential beyond FY25E, superior returns and the company's management quality, valuations are very attractive, and provide a long-term wealth creation opportunity.
On technical setup, the counter's 14-day relative strength index (RSI) came at 79.29. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 54.44. It has a price-to-book (P/B) value of 6.43.
Titagarh Rail has a one-year beta of 0.87, indicating low volatility.
As of March 2023 quarter (Q4 FY23), promoters held 47.83 per cent stake in the firm and public shareholders owned 52.17 per cent of the company.
Titagarh Rail, formerly known as Titagarh Wagons, is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal.
Meanwhile, Indian equity benchmarks witnessed some correction today after closing at record levels in the previous session. The domestic indices slipped as financials, banks, consumer, technology, automobile and energy stocks dragged.
Also read: Alok Industries shares jump 8% amid high volume; stock of RIL-promoted firm up 44% in 30 days