The shares of the leading railway rolling stock manufacturer gained up to 8 percent after the company received an order from the Ministry of Defence worth Rs 170 crore.
With a market capitalization of Rs 13,615.52 crore, the shares of Titagarh Rail Systems Ltd were trading at Rs 1,011.00 per share, increasing around 6 percent as compared to the previous closing price of Rs 956.50 apiece.
According to the company filing, Titagarh Rail Systems Ltd received an order for Procurement of 250 Specialized wagons from the Ministry of Defence, Government of India worth Rs 170 crore. The execution of the contract is scheduled to start 12 months after the signing of the contract and be completed in 36 months.
Looking into the company’s finances, Titagrah Rail System Ltd.’s revenue increased by 25 percent from Rs 766 Crore in Q3FY23 to 955 Crore in Q3FY24. During the same period, net profits increased by 127 percent from Rs 33 crore to Rs 75 crore.
Titagarh Rail’s entire order book stands at Rs 27,466 crores (including a proportional part of the order book of Rs 13,326 crores to be completed by the JV). The total number of unexecuted wagon orders was 19,259 wagons, which included a mix of Indian railway and private wagons.
The government intends to double the overall operating metro rail network to 1,700 kilometers within the next 3-4 years. This development will need the purchase of 2,000-2,500 metro rail coaches over the next 5-6 years, estimating a market size of Rs 32,500 crore over this time.
The stock has delivered a multi-bagger return of 47.26 percent in six months and 116.84 percent in a year. As a result, if an investor bought Rs 1 lakh shares in the company, their shares are now worth Rs 2.16 lakhs in a year.
The firm is the industry leader in wagon manufacture, accounting for 25-30% of total bids from FY20 to FY23. In May 2022, Indian Railways received its largest order in 10 years. In December 23, 1,021 wagons were delivered, the largest number in the industry’s history.
Titagarh Rail Systems Ltd specializes in the production and sale of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialized equipment and bridges, ships, and so on. The firm serves both domestic and foreign markets.
Written by:- Abhishek Singh
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