Titagarh Rail Systems shares zoom 13% to hit record high today

Shares of Titagarh Rail Systems Ltd on Wednesday rose sharply to scale their all-time high levels despite a weak trend in domestic benchmarks. The stock soared 12.57 per cent to hit a lifetime high of Rs 1,413.45. It was last seen 11.38 per cent higher at Rs 1,398.60. The scrip saw heavy trading volume today as around 5.83 lakh shares changed hands on BSE. The figure was higher than the two-week average volume of 1.86 lakh shares. Turnover on the counter came at Rs 78.40 crore, commanding a market capitalisation (m-cap) of Rs 18,835.47 crore.

Nuvama Institutional Equities sees the stock at Rs 1,475. "Titagarh Rail reported an 8 per cent YoY increase in Q4 FY24 revenue to Rs 1,050 crore. EBITDA margin rose 160 bps YoY to 11.4 per cent, aided by operating leverage. The company ended the quarter with an order book of Rs 28,100 crore (of which Rs 14,800 crore is to be executed over the next three to five years). Management expects work on the Bengaluru, Surat and Ahmedabad metro rail coaches in the current fiscal, and to deliver 950–1,000 wagons/month," the brokerage stated.

"Going ahead, the company expects to commence work on the Bengaluru Metro rail coach order. Work on the Ahmedabad and Surat Metro rail coach orders should also pick up later this fiscal. By end-FY25, Titagarh expects to produce 15–20 cars/month. Due to operating leverage, the company expects margins in the passenger coach segment to rise to 10 per cent," Nuvama further said.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 80.66. 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 63.43 against a price-to-book (P/B) value of 8.45. Earnings per share (EPS) stood at 22.05 with a return on equity of 13.32.

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