The share price of the small-cap company spiked by 2.7% to its intraday high of ₹1,126 per share from its previous close of ₹1,096.35 after the company entered into the joint venture with Amber Group.
According to the exchange filing, Amber Enterprises’ subsidiary, Sidwal, and Titagarh Rail Systems have signed agreements to form Shivaliks, a Joint Venture Special Purpose Vehicle.
The Joint Venture aims to manufacture railway components globally, with a cash consideration of up to ₹120 crores each from Sidwal and Titagarh Rail Systems Ltd, with completion by February 2024.
Net revenue of the company increased 54% YoY, from ₹607 crores in Q2FY23 to ₹935 crores in Q2FY24. Quarterly, their revenue rose by 2% from ₹911 crore in Q1FY24 to current levels.
In addition, the net profit rose 57% YoY, from ₹45 crores in Q2FY23 to ₹71 crores in Q2FY24. Their net profit rose 14% sequentially from ₹62 crores in Q1FY24 to current levels.
It is a multi-bagger stock, for instance, if an investor invested ₹1 Lakh a year ago the current value of the investment would be ₹2.38 lakhs. The share price of the company rose by 63% in the last six months and 138% in the last year.
Titagarh Rail Systems Limited is a small-cap stock with a market capitalization of ₹ 14,990 crores. In comparison to its peers, the company has a low price-to-earnings ratio of 69, a low debt-to-equity ratio of 0.26, a return on equity of 14%, and a return on capital employed of 17%.
The company is owned by promoters holding 45%, public investors owning 28%, foreign institutional investors owning 17%, and domestic institutional investors owning 10%.
Titagarh Rail Systems Limited is a supplier of passenger rolling stock, including metro coaches. The company offers a variety of electric propulsion equipment, including traction motors and vehicle control systems.
Written by Sriram KV
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