Titagarh Rail shares rebound 4% to hover around recent one-year high level; here's what analysts say

Titagarh Rail Systems Ltd shares were up in Thursday's trade despite profit booking seen in the domestic benchmarks. On BSE, the stock rose 4.30 per cent to hit a day high of Rs 1,042.95. At this price, the scrip was trading 4.34 per cent lower from its one-year high of Rs 1,090.30, a level seen in the previous session. Despite the mentioned fall, the multibagger counter has rallied 473.05 per cent from its 52-week low price of Rs 182, hit on December 26 last year.

Vinit Bolinjkar, Head of Research at Ventura Securities, picked Titagarh shares as a long-term bet. "Titagarh is my go to stock for the long-term. Once the ongoing profit taking measures in the market are through, the counter will find comfort with buyers and resume its uptrend," Bolinjkar told Business Today TV.

The company today announced key changes in its management structure with a strategic focus on strengthening its leadership in businesses.

Anil Kumar Agarwal has been given the responsibility of serving as Deputy Managing Director and CEO of the Freight Rail Systems business vertical of the company. And, Prithish Chowdhary will serve as the Deputy Chief Executive Officer of the Passenger Rail Systems, a company statement read.

On technical setup, immediate support on the counter could be seen at Rs 980 level. On the higher side, resistance may be found near the Rs 1,050 zone.

"Support will be at Rs 980 and resistance at Rs 1,050. Expected trading range will be between Rs 950 and Rs 1,100 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The counter was trading lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150- and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 57.18. 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 55.12 against a price-to-book (P/B) value of 9.15.

Around 1.04 lakh shares were last seen changing hands today. The figure was slightly lower than the two-week average volume of 1.26 lakh shares. Turnover on the counter came at Rs 10.54 crore, commanding a market capitalisation (m-cap) of Rs 14,013.48 crore. There were 87,487 sell orders against buy orders of 19,621 shares.

Titagarh Rail, formerly known as Titagarh Wagons, is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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