The shares of the Small-cap company, specializing in the design, manufacture, and supply of a wide range of railway rolling stock, including passenger and freight wagons, electric propulsion systems, and metro coaches, jumped upto 2 percent upon receiving a work order from the Ministry of Railways worth Rs. 312.69 Crores.
With a market capitalization of Rs. 12,674.15 Crores on Monday, the shares of Titagarh Rail Systems Ltd rose by 1.9 percent after making a high of Rs. 943.50 compared to its previous closing price of Rs. 925.80.
Titagarh Rail Systems Ltd, engaged in the design, manufacture, and supply of a wide range of railway rolling stock, has received that it has received a Letter of Advance Acceptance from the Ministry of Railways.
The order is for the manufacture and supply of 780 BVCM-C wagons, with the total order valued at approximately Rs. 312.69 crores. This order is entirely domestic, and the work is to be completed within nine months from the award date.
This development signifies a substantial business win for Titagarh, strengthening its order book in the railways sector and contributing positively to its future revenues.
Financials & Others
The company’s revenue declined by 2.9 percent from Rs. 1,067.08 crore to Rs. 1,035.43 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 78.95 crore to Rs. 64.45 crore during the same period.
The company has a P/E ratio of 45.09, which is better than the industry average of 53.9, and maintains a low debt-to-equity ratio of 0.25. It has also shown strong performance, with average revenue growth of 37.96% and net profit growth of 54.77% over the last three years.
Titagarh Rail Systems Limited, established in 1997, operates four manufacturing facilities with a capacity to produce up to 12,000 wagons and 300 coaches annually, making it the only Indian company manufacturing both wagons and coaches at this scale.
The company holds about a 25% market share in wagon manufacturing, supported by a large order book. Its total manufacturing value stands around Rs. 11,200 crore, with a joint venture contributing an additional Rs. 13,326 crore.
As of March 31, 2025, Titagarh Rail Systems Limited’s order book totals around Rs. 11,200 crore, with Rs. 4,350 crore from freight rolling stock and around Rs. 6,850 crore from passenger rolling stock orders.
Written by Sridhar J
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