Titagarh Rail shares up 22% in a month; is this railway counter ready for more upside?

Shares of Titagarh Rail Systems Ltd resumed their upward move in Monday's trade after a single-day halt. The stock was last seen trading 2.54 per cent higher at Rs 1,341.40. At this price, it has gained 22.15 per cent in the past one month.

"Railways stocks were in a consolidation phase over the last three months. Most of these counters have been multibaggers in the past two years. Given the kind of earnings visibility and the Centre's focus towards the railway infrastructure, these stocks are best positioned for long-term growth. But, there could be a valuation froth in a few. So, one needs to be stock specific and only individual stock valuations should be considered," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Bathini added that there has been a greater emphasis on the rail infra theme, which is why these rail stocks are gaining momentum again.

On technical setup, a few analysts suggested that Titagarh Rail's stock looked 'bullish' on charts and is likely to witness further gains. With that being said, support could be seen at Rs 1,280, followed by Rs 1,250, Rs 1,240 and Rs 1,220 levels.

"There could be further upside momentum in the counter. The first near-term target would be Rs 1,380 and if the stock breaks this level then it could further hit Rs 1,490. On the lower end, stop loss should be kept at Rs 1,280," Kkunal V Parar, Vice-President of Technical Research and Algo at Choice Broking, told Business Today.

"Rs 1,250-1,220 is anticipated to cushion any shortcoming. While with the counter-trend, the stock seems poised to test the Rs 1,450-1,500 subzone in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 1,250 and resistance at Rs 1,350. A decisive move above Rs 1,350 level may trigger a further upside towards Rs 1,402. The expected trading range will be between Rs 1,250 and Rs 1,425 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Titagarh Rail stock price is bullish on daily charts with strong support at Rs 1,240. A daily close above resistance of Rs 1,338 could lead to an upside target of Rs 1,400 in the near term," said Sebi-registered research analyst AR Ramachandran.

The scrip saw high trading volume on BSE as around 2.45 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 1.83 lakh shares. Turnover on the counter came at Rs 33.03 crore, commanding a market capitalisation (m-cap) of Rs 18,010.60 crore.

Titagarh Rail, formerly known as Titagarh Wagons, is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal. As of September 2024, promoters held a 40.46 per cent stake in the firm.