The shares of a leading comprehensive mobility solution provider with a strong presence in India and Italy slumped marginally by around 0.8 percent on BSE to Rs. 1,180 on Thursday.
This negative fluctuation in the share prices was largely in line with the overall market decline, driven by losses across multiple sectors as investors expressed concerns over escalating conflicts in the Middle East.
Stock Performance:
With a market capitalisation of Rs. 15,453.8 crores, the shares of Titagarh Rail Systems Limited opened at Rs. 1,175, as against its previous closing price of Rs. 1,188.75.
The stock hit its 52-week high at Rs. 1,896.5 on 27th June, and compared to Thursday’s closing price of Rs. 1,147.5, the stock is trading at a discount of nearly 40 percent.
The stock has delivered positive returns of nearly 49 percent of returns in one year, as well as around 19.2 percent returns in the last six months. So far in 2024, the shares of Titagarh Rail Systems have given positive returns of about 10.3 percent.
Shareholding Pattern:
On June 26th, BlackRock Global Funds, one of the funds managed by BlackRock Inc., the world’s largest asset manager, purchased a 1.6 percent stake in Titagarh Rail through block deals.
The acquisition involved purchasing 21.73 lakh equity shares at an average price of Rs. 1,618 per share, totaling Rs. 351.62 crores.
Prior to this acquisition, BlackRock had no investments in Titagarh or any other Indian railway stocks.
As per the July 2024 shareholding pattern, the Promoters hold a 40.46 percent stake in the company, Foreign Institutional Investors (FII) hold a 19.56 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 25.83 percent and 14.13 percent stake in Titagarh, respectively.
Financials:
The company has reported a marginal decline in revenue from operations, with around a 0.8 percent YoY fall from Rs. 911 crores in Q1 FY24 to Rs. 903 crores in Q1 FY25. In contrast, the net profit increased by 8 percent YoY from Rs. 62 crores to Rs. 67 crores, over the same period.
As of June 2024, Titagarh Rail’s total order book stood at Rs. 27,443 crores. This includes Rs. 14,117 crores in direct orders to the company and Rs. 13,326 crores from joint ventures (JVs).
The direct orders of Rs. 14,117 crores include Freight Rolling Stock (including Ship Building), which accounts for 51.9 percent with orders valued at Rs. 7,324 crores, while Passenger Rolling Stock, makes up the remaining 48.1 percent with orders totalling Rs. 6,793 crores.
Recent Developments:
On 1st October, Titagarh informed through stock exchanges that the company had requested the Indian Railways to short-close 3,089 BCNA wagons from a total order of 24,177 wagons.
These wagons were part of tranche number 3, which was scheduled for delivery between September 1, 2023, and February 29, 2024, but could not be delivered for various reasons. The Indian Railways accepted this request under the contract terms.
As a result of the short closure, along with an additional order of 716 BOXNHL wagons placed by the Indian Railways, the total revised order now stands at 21,804 wagons, valued at Rs. 7,100 crores.
This decision was made to help balance the company’s capacity with its workload, including the execution of private wagon orders, and to avoid potential penalties for the undelivered wagons.
Additionally, the company reported that it received a favourable award regarding a previous wagon contract dated 30th September 2020. This ruling reinstated 390 BCNA wagons, valued at Rs. 129.44 crores, which had been short-closed by the Indian Railways. The delivery of these wagons, according to the award, must be completed in 6 months.
About the Company:
Titagarh Rail Systems Limited is mainly engaged in the business of manufacturing and selling freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment & bridges, ships, and more.
Written by Shivani Singh
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