Bulk deal effect? Titagarh Rail shares rise over 7%, market cap crosses Rs 16k crore mark

Shares of Titagarh Rail Systems rose over 7% in early deals today. The rally in the multibagger stock comes a day after Morgan Stanley Asia Singapore Pte purchased stake in the firm in a bulk deal. The railway stock climbed 7.53% to Rs 1217.80 on Thursday. Market cap of the firm rose to Rs 16,003 crore. Total 1.56 lakh shares of the firm changed hands amounting to a turnover of Rs 18.44 crore. Titagarh Rail stock has clocked multibagger returns of 1,073% in three years and zoomed 640% in two years. 

The stock touched its 52-week low of Rs 703.80 on August 18, 2023 and rose to a record high of Rs 1896.50 on June 27, 2024. 

It has a one-year beta of 0.7, indicating very low volatility during the period.    

In terms of technicals, the relative strength index (RSI) of the stock stands at 37.2, signaling it's trading neither in overbought nor in the oversold zone. Titagarh Rail Systems shares stand lower than the  20 day, 30 day 50 day, 100 day, 150 day and 200 day but higher than the 5 day and 10 day moving averages. 

In a bulk deal on Wednesday, Morgan Stanley Asia Singapore Pte bought a 0.57% stake or 7,63,738 shares in the company at an average price of Rs 1,120 per share. The transaction amounted to Rs 85.5 crore. On the other hand, Smallcap World Fund Inc offloaded a 0.59% stake in the company at an average price of Rs 1,120.12 per share, valued at Rs 88.6 crore.

In the June 2024 quarter, Titagarh Rail Systems reported a subdued set of earnings. The wagons manufacturer clocked a 8.4 percent year-on-year rise in Q1 net profit to Rs 67 crore against Rs 61.79 crore in the same period last year. Revenue fell by nearly 1 percent to Rs 903 crore in Q1 from Rs 910.80 crore in the corresponding quarter of the previous fiscal year.

Titagarh clocked a 4.1 percent fall in EBITDA to  Rs 101.7 crore from Rs 106.1 crore in the year-ago period. The fall in revenue also affected the company's operating performance, with the EBITDA margin shrinking 50 basis points year-on-year to 11.2 percent.

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.