390-550% Gains: 3 Multibagger Rail Wagons Stocks At 1-Year Highs Amid Ram Mandir; Titagarh, Texmaco, Jupiter

When talking about railway stocks, the most popular ones to pop up would be IRFC, IRCTC and RVNL in recent times. However, three railway wagon stocks have gone from penny to midcap levels. They have given returns in the range of 390% to 550% from their 52-week lows as of now. And just a day before the auspicious occasion of Ram Mandir's inauguration at Ayodhya, these three stocks hit their lifetime high levels. The three have the potential to benefit from crores worth of railway projects in Ayodhya.

Here are the details of these three stocks and their robust performance:

Titagarh Rail Systems:

One of the best rail freight stocks is Titagarh Rail Systems which touched a new 52-week high of Rs 1,249 apiece on January 20, ahead of Ram Mandir's inauguration on Monday. The stock ended at Rs 1,175.30 apiece, up by 6.32%.

Titagarh has a market cap of Rs 15,828.21 crore. Its ROE is healthy at 16.60%, while its price-to-equity ratio is at 68.61x.

Titagarh shares have come a long way. From its 52-week low of merely Rs 194.80, the multi-bagger wealth-creating stock has shot up by a massive 541.17% as of now.

Titagarh offers mobility solutions to billions with its prominent presence in both the Passenger and Freight Rail Systems including Freight Wagons, Components, Semi High-Speed Trains and Metro Coaches & Propulsion Systems. TRSL is the largest private-sector manufacturer of Freight Wagons and an established player in the Passenger Rolling Stock segment. The Company has been awarded the largest-ever order for wagons by Indian Railways in addition to the orders for the manufacture and supply of Metro Trains for Pune, Bangaluru, Ahmedabad and Surat Metro projects.

Recently, the company launched the first indigenous 25T Bollard Pull Tug built at its facility in Titagarh, Barrackpore, for the Indian Navy.

Texmaco Rail:

Texmaco is another bull stock in the wagons segment. This rail freight went from penny levels of nearly Rs 40 to a new 52-week high of Rs 225 apiece on January 20 on BSE. The stock has given triple-digit returns in less than a year.

From its 52-week low of Rs 40.49, Texmaco shares have skyrocketed by 456% as of now. The company's market value is at Rs 8,331.86 crore. Its RoE is at 4.73%, and its P/E ratio is high at 127.88x.

The company is a premier multi-discipline, multi-unit Engineering and Infrastructure Company, with 6 manufacturing units extending over 6.78 million sqft.

The Company is involved in the business of manufacturing Rolling Stock, such as Wagons, Coaches, EMUs, Loco shells & parts, etc., Hydro Mechanical Equipments, Steel Castings, Rail EPC, Bridges and other steel structures. Over the years, the Company has entered into technical collaborations with renowned Multinationals in Japan, the U.S.A, U.K, Germany, Australia, Austria, Holland, etc. to develop and expand its product portfolio.

On January 20, Texmaco received an order worth Rs 1,374.41 crore from the Railways Ministry to manufacture and supply 3,400 BOXNS wagons -- out of which -- 1,133 wagons to be executed by December 31, 2024, and second tranche of 1,133 wagons by June 30, 2025, and 1,134 wagons to be executed by December 31, 2025.

Jupiter Wagons:

Indian private manufacturer of railway-related products, Jupiter Wagons has embarked on the journey for significant contribution to Atmanirbhar Bharat.

On January 20, Jupiter's share price froze at Rs 419.10 apiece, which was its fresh all-time high and also a 5% upper circuit. This meant there were no sellers in this stock ahead of Ram Mandir's inauguration. Currently, it has a market cap of Rs 17,279.23 crore.

From its 52-week low of Rs 85.37 apiece, Jupiter Wagons share has currently zoomed by a whopping 391% on BSE.

In early January, Jupiter Wagons announced the receipt of a significant contract from one of the leading automobile manufacturers for the manufacturing and supply of 4 rakes of Double Decker Automobile Carrier Wagons worth around Rs 100 crore.

Jupiter Wagons has leveraged its deep technological capabilities and robust financial position to emerge as a one-stop shop for mobility solutions and reinforce its position as one of the fastest growing within the industry. Catering to industries such as Railways (Freight + Passenger), Metro Rail, Automobile, Transportation, Logistics, Construction Equipment, Municipalities, Healthcare, Energy, Mining and Infrastructure, the Company boasts a marquee client base including the Indian Railways, American Railroads, Indian Ministry of Defense, Tata Motors, GE, Volvo Eicher Motors, Bharat Benz, and Avia Motors.

Ayodhya Railway Station is being redeveloped! Known as Ayodhya Dham Junction Railway Station, it will have a cost of over Rs 240 crore. The three-storey modern railway station building is equipped with all modern features like lifts, escalators, food plazas, shops for puja needs, cloakrooms, child care rooms, and waiting halls. The station building will be 'accessible for all' and 'IGBC certified green station building'.

Further, a new category of superfast passenger trains ka Amrit Bharat Express have been flagged off at Ayodhya Dham Junction Railway Station. Six new Vande Bharat Trains have also been flagged off. Apart from this, more superfast trains will be journeying towards Ayodhya.

Additionally, PM has flagged off three railway projects worth Rs 2300 crore to the nation to strengthen rail infrastructure in the region.

These huge projects will drive railway and rail freight stocks.

In 2023, Indian Railways achieved an originating Freight loading of 1512 MT i.e. an incremental loading of 94 MT over the previous best of 1418 MT achieved in FY 2021-22 with a growth of ~7%. Also, the Railways earned Rs 1,60,158.48 Crores from Freight.

As per the ministry data, in FY 2023-24, on a cumulative basis from April - November 2023, freight loading of 1015.67 MT was achieved by Indian Railways against last year's loading of 978.72 MT, an improvement of approximately 36.945 MT over last year's loading for the same period. Railways earned Rs 1,10,007.5 crore against Rs 1,05,905.1 crore over the last year which is an improvement of approx Rs 4102.445 Crore as compared to the same period of the last year.

Railways' Gross Budgetary Support saw a quantum jump to Rs 2.4 Lakh Crore for the year 2023-24. 1,309 Amrit Bharat Stations are identified across the nation, intending to significantly modernize passenger amenities and improve accessibility & inclusivity of railway stations.

Hence, railway wagon companies are in the sweet spot for growth-driven financial years. And Ayodhya's rail transformation is just another kick to their wagons for more growth!

Disclaimer: The write-up just highlights the stock's performance and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.