Titagarh Rail, Jupiter Wagons, Texmaco Rail: SMIFS see up to 40% upside; check targets
Brokerage firm SMIFS has initiated coverage on all three-listed railway wagon manufacturers namely Titagarh Rail Systems, Jupiter Wagons and Texmaco Rail & Engineering.
- Sep 5, 2025,
- Updated Sep 5, 2025 10:52 AM IST
Domestic brokerage firm SMIFS has initiated coverage on all three-listed railway wagon manufacturers namely Titagarh Rail Systems, Jupiter Wagons and Texmaco Rail & Engineering. The brokerage see 30-40% upside potential in these stocks as Indian railways is riding on the fast track to growth.
Indian Railways (IR) is at the heart of India's economic and infrastructural development. As the fourth-largest rail network globally, IR supports the daily movement of over 25 million passengers and transports more than 1.6 billion tonnes of freight every year. This strategic initiative has played a crucial role in positioning India on the global railway map, said SMIFS.
Recent efforts include the introduction of high-speed Vande Bharat trains and the expansion of metro networks across urban centres, pushing towards high-efficiency passenger-centric transport. These projects, alongside the modernisation of wagons, coaches, and locomotives, aim to drastically reduce logistics costs, which are currently among the highest worldwide, it said.
India's railway sector is backed by a record-high capital outlay of over Rs 2,400 billion annually for the last three years. This investment is pivotal for reducing logistics costs from the current 15% to 8% of GDP by 2030. The shift of bulk freight to rail is expected to decongest roads significantly, supporting the sector's role as a key enabler of inclusive development and national progress.
The Government of India's focus on the railway sector is evident through initiatives like the National Rail Plan (NRP), aiming to transform IR into a future-ready transport ecosystem. The NRP, launched in 2020–21, seeks to raise the freight modal share to approximately 45% by 2030 and significantly reduce freight transit times, it noted.
Supporting initiatives like PM Gati Shakti, Dedicated Freight Corridors (DFC), and 100% electrification are creating an integrated and efficient network. These initiatives align with broader infrastructure and sustainability goals, further promoting rolling stock modernisation and station redevelopment to enhance capacity and service quality, said SMIFS.
The transformation of IR is not only a national priority but also a strategic move to position India as a global leader in railway transport. With a proposed investment of Rs 50 trillion by 2050, IR's ongoing projects underscore its evolution beyond traditional roles, contributing significantly to India's growth trajectory, the brokerage added.
"We initiate coverage on all three listed railway wagon manufacturers and assign 'buy' ratings, driven by attractive valuations and a robust growth outlook over FY26E – FY28E," said SMIFS. It has ascribed a target price of Rs 1,183 on Titagarh Rail, citing a 40 per cent upside potential, while Jupiter Wagons and Texmaco Rail have a target prices of Rs 406 and Rs 178, respectively.
Domestic brokerage firm SMIFS has initiated coverage on all three-listed railway wagon manufacturers namely Titagarh Rail Systems, Jupiter Wagons and Texmaco Rail & Engineering. The brokerage see 30-40% upside potential in these stocks as Indian railways is riding on the fast track to growth.
Indian Railways (IR) is at the heart of India's economic and infrastructural development. As the fourth-largest rail network globally, IR supports the daily movement of over 25 million passengers and transports more than 1.6 billion tonnes of freight every year. This strategic initiative has played a crucial role in positioning India on the global railway map, said SMIFS.
Recent efforts include the introduction of high-speed Vande Bharat trains and the expansion of metro networks across urban centres, pushing towards high-efficiency passenger-centric transport. These projects, alongside the modernisation of wagons, coaches, and locomotives, aim to drastically reduce logistics costs, which are currently among the highest worldwide, it said.
India's railway sector is backed by a record-high capital outlay of over Rs 2,400 billion annually for the last three years. This investment is pivotal for reducing logistics costs from the current 15% to 8% of GDP by 2030. The shift of bulk freight to rail is expected to decongest roads significantly, supporting the sector's role as a key enabler of inclusive development and national progress.
The Government of India's focus on the railway sector is evident through initiatives like the National Rail Plan (NRP), aiming to transform IR into a future-ready transport ecosystem. The NRP, launched in 2020–21, seeks to raise the freight modal share to approximately 45% by 2030 and significantly reduce freight transit times, it noted.
Supporting initiatives like PM Gati Shakti, Dedicated Freight Corridors (DFC), and 100% electrification are creating an integrated and efficient network. These initiatives align with broader infrastructure and sustainability goals, further promoting rolling stock modernisation and station redevelopment to enhance capacity and service quality, said SMIFS.
The transformation of IR is not only a national priority but also a strategic move to position India as a global leader in railway transport. With a proposed investment of Rs 50 trillion by 2050, IR's ongoing projects underscore its evolution beyond traditional roles, contributing significantly to India's growth trajectory, the brokerage added.
"We initiate coverage on all three listed railway wagon manufacturers and assign 'buy' ratings, driven by attractive valuations and a robust growth outlook over FY26E – FY28E," said SMIFS. It has ascribed a target price of Rs 1,183 on Titagarh Rail, citing a 40 per cent upside potential, while Jupiter Wagons and Texmaco Rail have a target prices of Rs 406 and Rs 178, respectively.