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Multibagger Titagarh Rail Systems share price gained almost 8% to scale 52-week highs; What do analysts say?
Multibagger Titagarh Rail Systems Ltd’s share price gained almost 8 per cent on Friday to scale 52-week highs of Rs 1,308.95 on the BSE.
Titagarh Rail Systems share price has risen more than 170 per cent during last one year to give Multibagger returns to the investors. The rising railway capex has lifted earnings outlook leading to gains in Titagarh Rail Systems share price.
For the financial year 2024, Titagarh Rail System reported revenue at Rs 3,853 crore had improved 38.58 per cent. Its net profit at Rs 297 crore grew 7.71 per cent.
Over the last 5 years, Titagarh Rail Systems Revenue have grown by 21.02 per cent CAGR (compound annual growth, Ebitda up by 28.50 per cent CAGR) and Profit before tax by 44.51 per cent CAGR.
Titagarh Rail Systems has ended the fiscal year with strong order book worth Rs 14,750 crores, Passenger Rolling Stock comprised 46 per cent of this order book
Besides its share of order book in the Joint ventures stood at Rs 13,326 crore. The orders for Vande Bharat with BHEL comprised more than half of this order book.
Hence combined order book stands at around Rs 28000 Crore .
A report by Nuvama states that the company’s operating performance remains healthy and passenger segment revenues might scale up. Titagarh can also benefit from the surging railway capex.
“Titagarh’s wagon division is now operating at full tilt and produced 1,089 wagons in Mar-24, ~2,700 wagons in Q4FY24 and ~8,400 wagons in FY24. Management aims to produce 950–1,000 wagons p.m. in FY25, which will then ramp-up to 1,000 wagons/month consistently,” stated the Nuvama report.
TRS ended FY24 with an order book of Rs 28,100 crore (Rs 27,500 crore at end-Q3FY24). Of this, Rs 14,800 crore orders have to be executed over the next three–five years. In addition, the company has long-term orders of Rs 13,300 while during the quarter, the company won an order worth Rs 1910 crore for manufacture and supply of 4,463 BOSM Wagons from the Indian Railways, added Parvez Qazi of Nuvama.
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, TRS expects to produce 15–20 cars/month.
Earlier this month, Morgan Stanley had also initiated an ‘overweight’ rating on the stock with a target price of Rs 1,285 seeing Titagarh rail as a large beneficiary of the revival of Indian railways coupled with strong growth aspects of the company.
