Titagarh Rail Share: Multibagger Railway Co Bags Rs 1,909 Crore Wagons Order From Govt; Should You Buy?

Titagarh Rail Systems is a multi-bagger in the railway segment. The company's share price will be in focus next as it bagged a massive order to the tune of Rs 1,909 crore from the Railway Ministry. In a year, Titagarh's share has rallied by a whopping 267% on BSE. Titagarh is also among dividend-paying stocks.

In its regulatory filing, Titagarh said, "The Company has accepted the offer from the Railway Board for Manufacture and supply of 4,463 BOSM Wagons for a contract value of Rs. 1909,04,82,500/- (Rupees One Thousand Nine Hundred Nine Crores Four Lakhs Eighty Thousand Five Hundred only)."

On BSE, Titagarh Rail's share price stood at Rs 899.20 apiece, up by 0.93% with a market cap of Rs 12,109.87 crore. The stock has a 52-week high and low of Rs 1,249 apiece and Rs 223.30 apiece respectively.

In a year, Titagarh shares have zoomed by 266.57% on BSE, while in 5 years, the gain is around 1,166.48%.

As per Trendlyne data, the consensus recommendation from 5 analysts for Titagarh Rail Systems Ltd. is STRONG BUY. EPS is expected to grow by 100.5% in FY24. Notably, Titagarh's Revenue was higher than the average estimate 2 times in past 3 years.

Key fundamentals for Titagarh's share price, as per Trendlyne data are:

- Stock Price rose 296.03% and outperformed its sector by 219% in the past year.

- Debt to Equity Ratio of 0.26 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding increased by 1.92% in the last quarter to 10.35.

- Interest Coverage Ratio is 3.79, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Price to Earning Ratio is 47.38, higher than its sector PE ratio of 32.56.

- Return on Equity(ROE) for the last financial year was 13.51%, in the normal range of 10% to 20%.

- Promoter Share Holding decreased by 2.51% in the most recent quarter to 42.46%.

- Promoter Pledges are zero.

Titagarh is a leading comprehensive mobility solution provider with a strong presence in India and Italy. With state-of-the-art factories in both countries, the company is committed to meeting the diverse requirements of passenger and freight rolling stock. At Titagarh, it specializes in crafting cutting-edge transportation solutions, including semi-high-speed trains, urban metros, passenger coaches, propulsion equipment, and a wide array of wagons, including specialized ones.

Titagarh is among the dividend paying railway stocks. Since July 2008, Titagarh announced 13 dividends. In the past 12 months, the company paid dividends up to Rs 0.50 per share.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.