Titagarh Rail Systems shares rise 5%, hit 52-week high on Rs 857 crore order win

Shares of Titagarh Rail Systems rose 5% and hit a 52-week high of Rs 529.2 in Wednesday's trade on BSE after the firm bagged Rs 857 crore worth of orders from Gujarat Metro Rail Corporation for designing, manufacturing, supplying, testing, commissioning and training of 72 Standard Gauge Cars for Surat Metro Rail Phase-I Project I.

The order for Surat metro coaches would start 76 weeks after signing the contract and is scheduled to be completed in 132 weeks thereafter, Titagarh Rail Systems said in an exchange filing.

At 10.18 am, the stock was trading 1.5% higher at Rs 513.3 on BSE. The stock also delivered multibagger returns to its investors, as it has surged 125% year-to-date, while it has rallied 403% in the last one year.

Earlier this month, brokerage firm Antique Stock Broking initiated coverage on the stock with a "buy" rating and a target price of Rs 694. The price target implies an upside potential of more than 35% from the current levels.

Brokerage Antique Stock Broking is bullish on the growth prospects of the company and believes that risk-reward remains attractive even after such a strong run in the stock.

"At 12x FY25E earnings, the stock is cheap and does not capture TRSL's long-term growth potential," the brokerage said in its report.

The brokerage believes that the company has the capacity to grow its turnover to over Rs 90-100 billion over the next five years, riding on the manufacturing set-up it has created, which is difficult to replicate.

The company plan to increase its wagon manufacturing capacity to 12,000 wagons per year in FY24, from 8,400 wagons per year.

In May last year, it bagged a large order to supply 24,177 wagons over three years, which will ensure strong growth in the segment over FY23-25, Antique Stock Broking said.

As per Trendlyne data, the average target price of the stock is Rs 531, which shows an upside potential of 4% from the current market prices. The consensus recommendation from four analysts for the stock is a 'strong buy'.

Technically, the stock's day RSI (14) is at 79.6. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 32, which is above its center and signal line, this is a bullish indicator.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)