Railway stocks: Titagarh Rail, Jupiter Wagons shares up; here are target prices

Antique Stock Broking has issued reports on two railway stocks, Jupiter Wagons Limited (JWL) and Titagarh Rail Systems Limited (TRSL). Both are poised for growth in the railway and transportation sectors, facing different market challenges and opportunities.

Jupiter Wagons, a "top-tier player in mobility solutions", aims to increase its turnover from Rs 4,000 crore in FY25 to Rs 10,000 crore over the next four years. The company benefits from strong capabilities and sectoral trends. However, Antique Stock Broking maintains a HOLD rating due to steep valuations, with a target price of Rs 431, valuing the stock at 32x FY27E.

The freight wagon business, a significant segment for JWL, has faced supply chain disruptions due to a shortage of wheelsets. This issue is expected to resolve by July 2025, enabling JWL to better execute government orders. The company derives 60% of its business from private players, expecting a government wagon tender to enhance revenue visibility by the end of 2025.

In contrast, Titagarh Rail Systems, India's largest wagon manufacturer, has expanded into the passenger transport sector, transforming into a comprehensive railway transportation company. Despite being a leader in wagon manufacturing, TRSL's Passenger Rail Systems (PRS) division is seen as a potential major revenue driver in the medium term.

Antique Stock Broking expresses a positive outlook for Titagarh Rail Systems, retaining a BUY rating with a target price of Rs 1,099, calculated at 26x its FY27E EPS. The firm's foray into integrated manufacturing of passenger rail systems is expected to boost earnings.

Both companies are positioned differently within the industry. While JWL is grappling with supply challenges, TRSL focuses on diversifying and enhancing its offerings. This divergence highlights varied strategies in the railway sector for growth and profitability.

The implications of these developments are significant for stakeholders. JWL's resolution of supply issues could boost execution capabilities, while TRSL's expansion into passenger systems may redefine revenue streams and market positioning.

Looking forward, JWL's progress in government orders and TRSL's growth in passenger systems could shape future trajectories positively. Analysts suggest monitoring these firms' execution and market performance closely to gauge long-term success.

Overall, Antique Stock Broking's reports provide insights into investment opportunities and challenges within India's railway sector, underscoring the importance of strategic positioning and market adaptability for growth.

On Tuesday, shares of Jupiter Wagons Ltd were quoting at Rs 381, up 2.46 per cent. Titagarh Rail Systems Ltd climbed 4.88 per cent to Rs 918.55.