Multibagger stock: Titagarh Rail Systems shares hit fresh 52-week high, up over 150% in 2023 so far

Shares of Titagarh Rail Systems Ltd rose sharply in Wednesday's trade to scale their fresh one-year high level. The stock today jumped 9.78 per cent to hit a 52-week high of Rs 593.85 over its previous close of Rs 540.95. It was last seen trading 4.69 per cent higher at Rs 566.30. The multibagger counter has surged more than 150 per cent on a year-to-date (YTD) basis and nearly 350 per cent in the past one year.

In an exchange filing, Titagarh said, "This is to inform that a meeting of the Board of Directors of the company is scheduled to be held on Saturday, July 22, 2023, to consider inter alia and approve unaudited financial results (standalone & consolidated) for the quarter ended June 30, 2023."

Antique Stock Broking sees the scrip at 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.

On technical setup, the counter's 14-day relative strength index (RSI) came at 78.73. 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 66.80 against a price-to-book (P/B) value of 7.89.

Titagarh Rail has a one-year beta of 0.78, indicating low volatility.

Around 1.06 lakh shares changed hands on BSE today, which was lower than the two-week average volume of 1.67 lakh shares. Turnover on the counter stood at Rs 6.05 crore, commanding a market capitalisation (m-cap) of Rs 6,770.71 crore.

As of June 2023 quarter (Q1 FY24), promoters held 44.97 per cent stake in the firm and public shareholders owned 55.03 per cent of the company.

Kolkata-headquartered Titagarh Rail, formerly known as Titagarh Wagons, is engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment and bridges, and ships.

Meanwhile, Indian equity benchmarks scaled their fresh all-time highs today. The 30-share BSE Sensex pack surged more than 300 points to touch its all-time high of 67,117, while the broader NSE Nifty moved over 100 points up to scale a fresh record peak of 19,842.

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