On Monday the share price of the company rose by 3.4 percent to its intraday high of Rs 1084.95 per share from the previous close of Rs 1048.40 after the company announced it launched a pull tug for the Indian Navy.
According to the exchange filing, Titagarh Rail Systems Limited (TRSL), launched its first indigenous 25T Bollard Pull Tug for the Indian Navy in Titagarh, West Bengal. It is a powerful boat that pulls 25 tons and assists large ships in harbors and at sea.
Bollards are short, stocky structures made of metal that are used on piers or docks to help moor the vessel by anchoring the tow lines. The Bollard Pull is a measure of a vessel’s pulling power, similar to the horsepower rating of a conventional vehicle engine.
TRSL is building a fleet of six tugs for various maritime operations as part of the Make in India and Atmanirbhar Bharat initiatives.
Looking at their Net revenue increased 54 percent year on year, from Rs 607 crores in Q2FY23 to Rs 935 crores in Q2FY24. On a quarterly basis, their revenue rose by 2 percent from Rs 911 crore in Q1FY24 to current levels.
In addition, the net profit rose 57 percent year on year, from Rs 45 crores in Q2FY23 to Rs 71 crores in Q2FY24. Their net profit rose 14 percent sequentially from Rs 62 crores in Q1FY24 to current levels.
Titagarh Rail Systems Limited is a small-cap stock with a market capitalization of Rs 14,500 crores, the share price of the company rose by 98 percent in the last six months and 130 percent in the last year.
It is a multi-bagger stock, for instance, if an investor invested Rs 1 Lakh a year ago the current value of the investment would be Rs 2.3 lakhs.
In comparison to its peers, the company exhibits a low price-to-earnings ratio of 66, a low debt-to-equity ratio of 0.26, a return on equity of 14 percent, and a return on capital employed of 17 percent.
The company is owned by promoters to the tune of 45 percent, public investors owning 28 percent, foreign institutional investors owning 17 percent, and domestic institutional investors owning 10 percent.
Titagarh Rail Systems Limited, formerly Titagarh Wagons Limited, is a passenger rolling stock supplier that includes metro coaches. Electric propulsion equipment such as traction motors and vehicle control systems are among the products offered by the company.
Written by Sriram KV
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