Shares of this midcap company surged around 8 percent in Thursday’s trading session after BlackRock bought 9.46 lakh shares via block deal. The shares have delivered a multi-bagger return of 273 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 25,428 crores, the shares of Titagarh Rail Systems Ltd started Thursday’s trading session on a higher note at Rs. 1,810 compared to its previous close of Rs. 1,764. During the trading session, the shares hit a high of Rs. 1,896.95, gaining around 8 percent and are currently trading at Rs. 1,866 apiece.
What Happened:
According to the BSE data, BlackRock Global Funds and BlackRock Global Emerging Markets Inc. funds managed by BlackRock Inc., the world’s largest asset manager bought 0.7 percent and 1.61 percent respectively on Wednesday, at an average price of Rs. 1,618 per share. The total transaction was valued at over Rs. 500 crores.
Furthermore, BNP Paribas financial markets acquired 5,20,294 equity shares or 0.39 percent at an average price of Rs.1,618 apiece.
The shares in this transaction were sold by Rashmi Chowdhary, one of the promoter group members, who as of the quarter that ended on March 31, had a 9.52 percent stake in Titagarh Rail Systems.
Financials:
Looking at the company’s financial statements, the revenue increased by 10.2 percent from Rs. 954.67 crores during the December quarter to Rs. 1,052.41 crores in the March quarter. In addition, the net profits zoomed by 6 percent from Rs. 74.82 crores to Rs. 78.94 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 8 percent from Rs. 974.21 crores during Q4FY23 to Rs. 1,052.41 crores in Q4FY24. On the other hand, the net profits magnified by 64 percent from Rs. 48.23 crores to Rs. 78.94 crores during the same timeframe.
Order Book:
As of March 31, 2024, the total order book of the company amounted to Rs. 28,076 crores. Within this figure, orders totalling Rs. 14,750 crores were directly received by the company, while the remaining Rs. 13,326 crores represent the company’s share of the order book within joint ventures.
Future Plans:
As per reports, Titagarh Rail Systems is expanding its production capacity to manufacture 800-850 train coaches annually. Each coach is valued at around Rs. 10 crores, potentially generating annual revenues of Rs. 8,000 to 8,500 crores.
Moreover, the railway company also aims to strengthen its engineering capabilities in India to support the growing Indian passenger rail market leveraging low-cost capabilities and synergies from Firema.
Company Profile:
Headquartered in Kolkata, Titagarh Rail Systems was incorporated in 1997. The company mainly manufactures and sells Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised equipment and Bridges, Ships, etc. The company caters to both domestic and export markets.
Written By Vaibhav Patil
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