Titagarh Rail shares fall 10% from record high; right time to book profit?

Shares of Titagarh Rail Systems Ltd have slipped 10% from their record high in the last four sessions. The multibagger stock, which hit a record high of Rs 827.95 on August 25 ended at Rs 743.50 in the previous session, falling 10.19% or Rs 84.45 during the period. Titagarh Rail Systems stock hit a 52 week low of Rs 136.45 on September 28, 2022. Shares of Titagarh Rail ended 1.73% higher at Rs 743.50 on Wednesday against the previous close of Rs 730.85 on BSE. It hit an intraday high of Rs 758.55, rising 2% after the rail wagon and coach maker won a Rs 350-crore contract from Gujarat Metro Rail Corporation. 

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“The order win is for design, manufacture, supply, testing, commissioning and training of 30 standard gauge coaches for the second phase of the Ahmedabad Metro Rail Project,” the company said on August 30 during market hours. 

The prototype has to be delivered within 70 weeks from the date of receiving the letter of acceptance (LoA) and delivery is to be completed in 94 weeks from the award of the same, it added 

Meanwhile, total 0.65 lakh shares of the firm changed hands amounting to a turnover of Rs 4.81 crore on Wednesday. Market cap of the firm rose to Rs 9455.17 crore.       

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In terms of technicals, the relative strength index (RSI) of the stock stands at 59.9, signaling it's trading neither in the overbought and nor in the oversold zone. Titagarh Rail Systems shares have a beta of 1, indicating average volatility in a year. Titagarh Rail Systems shares stand higher than the 20 day, 50 day, 100 day and 200 day but lower than the 5 day moving averages.

ALSO READ: Titagarh Rail shares fall 10% from record high; right time to book profit?      

In the last one year, the Titagarh Rail Systems stock has surged 333.53%.   

Market expert Ravi Singh said, "After the Union cabinet approved rail expansion projects worth Rs 32,000 crore, most of the rail stocks are on rise. Titagarh, which deals in manufacturing of railway coaches, wagons will also benefit with this package. On the technical setup, the stock is showing strength on daily and weekly basis and the momentum indicators suggesting a strong move ahead for the target of Rs 850 in the near term after a brief period of profit booking on the counter."   

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Gaurav Bissa, VP, InCred Equities said, "Titagarh Rail Systems had a dream run since the last couple of years during which the stock has more than tripled. The stock has achieved multiyear breakout targets which indicates one should book profits at the current levels. RSI is also seen reversing from extreme overbought zone on the weekly charts implying the upside may see some halt in the coming weeks." 

Abhijeet from Tips2Trades said, "Titagarh Rail Systems is bearish on the Daily charts with next resistances at Rs 785 & Rs 823. Investors should book profits at current levels as a  daily close below the support of Rs 722 could lead to a target of Rs 600 in the near term." 

 Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has been on a good run with a steady and gradual rise. It has now given a short correction from Rs 830 levels to retest the breakout level of Rs 690. There is strong support around Rs 690 levels, and with support at Rs 690, one can buy for an upside target of Rs 830–850 levels." 

Nine promoters held 44.97 per cent stake in the firm and 141553 public shareholders owned 55.03 per cent or 6.99 crore shares as on July 7, 2023. Of these, 1.37 lakh resident individuals held 2.68 crore shares or 21.14% stake with capital up to Rs 2 lakh. Only 11 resident individuals with 3.71% stake held capital above Rs 2 lakh as on July 7, 2023.      

About the Company       

 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.