Titagarh Rail shares: Two reasons the rail wagon stock is in news today   

Shares of Titagarh Rail Systems are in news today after global brokerage Morgan Stanley assigned an overweight rating to the stock.  According to the brokerage, the company stands to benefit from Indian Railways' plan to procure 90,000 wagons by 2025. The brokerage assigned a price target of Rs 1,337 to the rail wagon major's stock. 

The company's constant efforts to raise its capacity for both freight and passenger segments will allow it to capitalise on these opportunities, said Morgan Stanley. 

The company is expanding its capabilities in propulsion manufacturing, with an eye on targeting export markets,added the brokerage. 

Shares of Titagarh Rail are also in news today as the stock trades ex-dividend in the current session. The board of the firm declared a final dividend of Rs 0.80 or 40 percent per equity share with a face value of Rs 2 for the financial year ended March 31, 2024. It fixed August 20, 2024 as the record date to determine the eligibility of the shareholders for this final dividend. 

The dividend is subject to approval of the shareholders. A decision regarding the dividend payment date is likely to be taken during the 27th Annual General Meeting (AGM) of Titagarh Rail Systems scheduled for August 27.

The railway stock rose 3.15% to Rs 1473 on Monday. Market cap of the firm stood at Rs 19,849 crore. Total 1.35 lakh shares of the firm changed hands amounting to a turnover of Rs 19.89 crore. Titagarh Rail stock has clocked multibagger returns of 131% in a year and zoomed 919% in two years. 

The stock touched its  52-week low of Rs 635 on August 18, 2023 and rose to a record high of Rs 1896.50 on June 27, 2024. 

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.