Titagarh Rail Systems Jump BY 8%, As Order Book Extends Till FY27

Titagarh Rail Systems Ltd, known as Titagarh Wagons Ltd. is an Indian rolling stock manufacturer in the private sector. The stock of Titagarh Wagon has jumped by 8% today, the company has an extended order book till FY27 and market analysts are also bullish on the stock as they believe that the company is going to be a major beneficiary as the government transforms Indian railways.

Recent orders for the Company

The company has received strong orders recently, In March 2024. The company had accepted orders from the railway board for the manufacture and supply of 4,463 BOSM wagons for a contract value of Rs.1909 crores. In February, the company bagged an order from the Defence Ministry for the Procurement of 250 specialised Wagons. The approximate value of this order would be around Rs.170 crores. Execution of this contract is expected to start 12 months after this order signing and the completion should be within 36 months.

Titagarh recently unveiled its second 25T Bollard Pull Tug, Bahubali, designed specifically for the Indian Navy. It is built at the company’s facility in Titagarh, Barrackpore, this launch adds in the company’s fulfilment of a six-tug order secured from the Indian Navy in November 2021, as part of the Ministry of Defence’s Make in India initiative.

Markets still Bullish on the Titagarh Railway System

Titagarh Railway system stock has given stellar returns of more than 38% in the past six months, After this long bullish run analysts are still expecting more upside in the stock, Latest research reports from analysts also suggest more upside in the stocks as they believe the company’s business is poised to do more better on the back of strong order bank which is extended till FY27, They further mentions the freight segment as a cash cow for Titagarh, while the passenger business is a new growth engine for the company. Analysts are forecasting a strong 25-30 % earnings CAGR from FY24 to FY27.

Conclusion: The company has received various orders in recent times and is maintaining a healthy order book which is extended till FY27. With this strong order book,  the company is expected to perform well. The company is also expected to be an important beneficiary as the government of India aims to transform the Indian railways. Over the past six months, the stock has given more than 38% returns and it currently trades at Rs.1120 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.