Titagarh Rail shares give up record high, fall after three days; what’s next?

Shares of multibagger Titagarh Rail Systems Ltd slipped over 5% from record high amid benchmark indices trading on a flat note today. The railway stock fell 5.69% to Rs 1012.50 from  record high of Rs 1073.65  it reached in early morning. Titagarh Rail shares fell after three straight sessions of gains. Market cap of the firm declined to Rs 12,946 crore. Total 0.48 lakh shares of the firm changed hands amounting to a turnover of Rs 5.01 crore. Despite today’s correction, Titagarh Rail stock has clocked multibagger returns of 397% in a year and zoomed 348% this year.  

The stock has clocked positive returns in all time periods up to 10 years. It hit a 52-week low of Rs 182 on December 26, 2022. It has a one-year beta of 0.6, indicating very low volatility during the period.   

Also read: Titagarh Rail shares hit Rs 1,000 mark as firm launches QIP to raise Rs 700 crore

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has indicated a decent spurt in the last session to break above the rectangular box pattern on the daily chart above Rs 1020 zone to improve the bias but currently a dip witnessed has again wiped out the gains to show some sluggishness and would need to maintain above the Rs 1020 zone to sustain with the positive bias. The support is maintained strong near Rs 960 levels and with a decisive breach above Rs 1020-1030 zone sustained, one can expect next targets of Rs 1120 and Rs 1180 levels in the coming days." 

Abhijeet from Tips2trades said, "Titagarh Rail is very overbought & slightly bearish on the Daily charts with strong resistance at Rs 1074. Investors should book profits at current levels as a Daily close below support of Rs 1000 could lead to target of Rs 888 in the near term." 

In terms of technicals, the relative strength index (RSI) of the stock stands at 72.7, signaling it's trading in overbought zone. Titagarh Rail Systems shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.        

Titagarh Rail Systems logged a 46.5% rise in net profit to Rs 70.6 crore in Q2 against a net profit of Rs 48.2 crore in the September 2022 quarter. Total revenue climbed 54.1% to Rs 935.5 crore in Q2 against Rs 607.1 crore in the corresponding period of the preceding fiscal. Earnings per share rose to Rs 5.56 in the September 2023 quarter against Rs 3 in the September 2022 quarter.     

Profit before tax zoomed 112% to Rs 94.39 crore in the September quarter against Rs 44.45 crore in the September 2022 quarter.    

About the Company             

Titagarh Rail Systems is engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment and bridges, and ships. The company operates through three segments:  freight rolling stock, passenger rolling stock, and shipbuilding, bridges & defence.   

 

Also read: HMA Agro shares hit upper circuit; company announces record date for stock split

 

Also read: Top 10 stocks to watch on December 12, 2023: Infosys, BPCL, Dixon Technologies, Wipro, Canara Bank and more

Also read: Stock recommendations by market analysts for December 12, 2023: Union Bank, West Coast Paper, GAIL and Jindal Steel