Shares of this multibagger stock associated with the ‘Railway’ sector jumped around 4 percent in Friday’s trading session after the company’s Board of Directors approved the floor price of Qualified Institutional Placement (QIP) worth up to Rs 700 crores.
With a market capitalization of Rs 12,971.45 crores, the stocks of Titagarh Rail Systems Limited opened their trading hour on Friday at Rs 992.05 and currently trades at Rs 1,020, gaining approximately 4 percent as compared to the previous closing levels of Rs 983.15 apiece.
The bullish movement in the stock price was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Board of Directors approved the floor price of Rs 976.10 per share for its Rs 700 crore QIP that was already accorded at its meeting held on 8th November 2023.
During the recent financial quarters, the company has showcased positive growth in the basic business parameters such as operating revenues and net profits.
The former grew from Rs 910.76 crores during Q1FY23-24 to Rs 935.45 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, rose from Rs 61.78 crores to Rs 70.89 crores.
As per the company’s presentations, the company, during H1FY23-24, reported an order book of Rs 28,212 crores comprising 51 percent from Freight Rolling Stocks and the remaining 49 percent from Passenger Rolling Stocks.
Moreover, the company has an opportunity size worth approximately Rs 58,000 crores to manufacture 200 ‘Vande Bharat’ trains and maintain them for the next 35 years.
Keeping a purview of the last six months, the company’s stock has delivered multibagger returns of 117 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh six months ago, it would have converted to Rs 2.17 lakhs.
Titagarh Rail Systems Limited is engaged in the business of manufacturing and selling metro trains, train electricals, freight wagons, passenger coaches, and others. The company has a business presence within as well as outside India.
Written by Amit Madnani
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