This Railway stock that deals in the business of manufacturing and selling Freight Wagons, Passenger Coaches, Metro Trains, and others were in focus after the company plans to diversify into Shipbuilding and Safety Systems.
Share Price Movement
With a market capitalization of Rs. 12,134.78 Crores, the shares of Titagarh Rail Systems Limited were down by 2.16 percent in the day’s trade touching a day’s low of Rs. 890.80 per share. The stock reiterated from the day’s low and closed at Rs. 901.05 which is 1.04 percent lower than the previous closing price of Rs. 910.50 apiece.
It has delivered a negative return of 12 percent which has underperformed the Nifty Index in the past year.
What Happened
The company’s stock is in focus after they plan to diversify their business towards Shipbuilding and Maritime Systems and Signalling and Safety System verticals.
Under the Shipbuilding segment, the company will undertake marine business including shipbuilding, ship repair, and other business activities related to maritime.
In the Signalling and Safety Systems segment. Titagrah to undertake activities relating to railway signalling and safety including they will not limit to train control and condition monitoring, vehicular and train mounted solutions. They focus on railway operations and are involved in the development and installation of products enabling smooth operations.
Q2FY25 Financial Highlights
As of September 2024, Titagarh Rail Systems consolidated revenue from operations has increased by 13.04 percent year on year from Rs. 935 crores in Q2FY24 to Rs. 1,057 crores in Q2FY25 and increased by 17.05 percent quarter on quarter from Rs. 903 crores in Q1FY25.
The company’s consolidated net profit stood at Rs. 71 crores in Q2FY24 increased by 14.08 percent to Rs. 81 crores in Q2FY25. As compared to Q1FY25, the company’s net profit stood at Rs. 67 crore.
Business Segments
They earn 94.61 percent of the operational revenue from Freight Rail Systems and 5.38 percent from Passenger Rail Systems for the September 2024 quarter. The Freight Rail Systems holds a higher margin compared to Passenger Rail in Operating profits. Titagarh earns a majority share of 99.44 percent from India and the remaining 0.55 percent from the Rest of the World.
Company Overview
Titagarh Rail Systems Limited was established in 1984. They are Indian manufacturer of rolling stock which includes freight wagons, passenger coaches, and metro trains while serving markets domestically and internationally. The order book of the company stood at around Rs. 25,751 crore as per Crisil Ratings dated 10th January 2025.
Written By Santhosh S
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