Railway Stock to Buy: Up nearly 5x in 1 year, this railway stock has analysts bullish for long term
Railway Stock to Buy: After Titagarh Rail Systems Ltd (TRS) reported strong December quarter results on Monday, brokerages are bullish on the railway stock. The stock of Titagarh Rail, which has reported a 91.3 per cent rise in profit after tax (PAT) to Rs 75.03 crore for the December quarter, has jumped nearly 400 per cent in the past year. Nuvama has maintained a 'buy' rating on Titagarh Rail Systems. Recently, HSBC raised its target price for the railway stock. A Zee Business research analyst is also gung-ho about the stock.
Railway Stock to Buy: Titagarh Rail Systems Ltd (TRS) is one of the most sought-after railway stocks, having given returns of 399.06 per cent in the last one year. As of February 6, 2024, the stock price stands at Rs 1,030 from Rs 206.5-odd levels seen only a year ago. On Monday, Titagarh Rail Systems Ltd (TRS) reported robust December quarter results, with a 91 per cent jump in consolidated net profit after tax and a 25 per cent rise in revenue from operations.
Such impressive numbers have attracted positive reactions from brokerages such as Nuvama and Antique Stock Broking. Both brokerages have retained their 'buy' ratings for the stock of the wagon manufacturer. In January-end, HSBC had also reinstated its 'buy' rating on the firm.
After the strong Q3 results, here's what analysts make of the multi-bagger Titagarh Rail Systems stock.
Titagarh Rail Systems: Nuvama target at Rs 1,309
Brokerage Nuvama has recommended buying Titagarh Rail Systems shares with a one-year target of Rs 1,309 apiece, which implies a potential upside of more than 27 per cent from its previous close. While Titagarh Rail Systems' quarterly results were in line with Nuvama's expectations, the brokerage expects the railway company to benefit from an increase in the government's capex for the sector.
Meanwhile, the company achieved the highest-ever monthly production of 1,021 wagons in December. It also entered into two strategic partnerships (ABB and Amber Group) for passenger coaches during the fiscal third quarter.
Nuvama raised its FY24, FY25 and FY26 EPS estimates for Titagarh Rail by 9 per cent, 6 per cent and 5 per cent, respectively
Titagarh Rail Systems: Antique Stock Broking target at Rs 1,252
Antique Stock Broking has maintained a 'buy' rating on the company with a target of Rs 1,252 per share, a rise of 21.55 per cent from the current levels.
According to the brokerage, the results of Titagarh Rail Systems were as per its expectations.
Titagarh Rail Systems: What Zee Business analyst says
Zee Business analyst Kushal Gupta has recommended buying the stock with a one-year target of Rs 1,300, a 26.2 per cent upside.
Investing in Titagarh Rail Systems is a big opportunity since the government, in the Interim Budget 2024, announced converting 40,000 normal rail bogies into Vande Bharat standards, according to Gupta.
Titagarh Rail Systems: What HSBC says
In late January, HSBC reinstated its rating for Titagarh Rail Systems at 'buy' and increased its target for the stock to Rs 1,200 from Rs 970.
According to the brokerage, Titagarh Rail's competitive pricing position is improving in the passenger coach business.
While strong growth for the wagon industry continued in the fiscal third quarter, the company is set to improve its cost-competitiveness in the passenger coach business through strategic partnerships, according to HSBC.
It is creating external revenue growth opportunities from a rolling stock component business, it added.
Titagarh Rail Systems Share Price History
Titagarh Rail Systems has proved to be a multi-bagger for investors in the last one year.
Investors have received returns of more than 399.06 per cent in the last one year.
That is, the value of investing Rs 1 lakh in this share a year ago is nearly Rs 5 lakh today. Whereas the 5-year return has been more than 1555 per cent.
On February 6, 2024, the stock jumped more than 0.90 per cent intraday.
In the session, the stock reached a high of 1038.45 and a low of 1007.05.
The 52-week low for the stock is 194.80, while the 52-week high is Rs 1249.00.
The market cap of the stock on BSE was more than Rs 13,871.40 crore.
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07:01 PM IST