With a market capitalization of ₹ 2554 crores, Titagarh Wagons is a small-cap company engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, specialised equipment & bridges, ships, steel castings, and so on. It caters to both domestic and export markets.
Titagarh reported a 98.70% increase in its revenue from operations to ₹ 766.4 crores in the October to December quarter of 2022. It posted a revenue of ₹ 385.7 crores in the same quarter last year. There was an increase of 112% in its profit after tax (PAT) at ₹ 15.42 crores for the latest quarter, against ₹ 7.28 crores in the corresponding quarter last year.
The railway company’s EBITDA margin decreased by 240 bps year-on-year (YoY) to 9.5 per cent. The company ended the quarter with an order book of ₹ 10,100 crore.
Titagarh Wagons has given multibagger returns of 119.05% in the past year as its share price increased from ₹ 97.65 to ₹ 213.90 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.19 lakhs today!
The company has a return on equity of 9.27% and an ideal debt-to-equity ratio of 0.39. Its shares were trading at a price-to-earnings ratio (P/E) of 57.65, which is higher than the industry P/E of 36.94, indicating that the stock might be overvalued as compared to its peers. It could also mean that investors are willing to pay a higher price for the company’s future earnings.
Written by Simran Bafna
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