Multibagger railway stock Titagargh rallies nearly 18% in 2 days. What’s cooking?

The company reported a net profit of Rs 78.95 crore for Q4FY24, an increase of 63.7% YoY on Wednesday, while the from operations stood at Rs 1,052.42 crore as against Rs 947.22 crore for the same period last year.

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 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 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 , added Parvez Qazi of Nuvama.

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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, 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.

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