This small-cap stock has skyrocketed 268% from 52-week low; any guesses?
The stock market is like an ocean for investors looking to build wealth. It's just that one must thoroughly delve deeper, and analyse and assess the market conditions, companies' business, industry trends, management, financials and growth prospects before investing their hard-earned money into any stock.
One such stock that has given multi-bagger returns in the last 10 months is railway wagon manufacturer Titagarh Wagons. The Kolkata-headquartered company hit a 52-week high of Rs 343.70 in Thursday's session (April 20), up 14.4 per cent on the BSE against its previous close. The scrip had touched its 52-week low of Rs 93.35 on June 20, 2022. However, it is interesting that the stock is still much below its final issue price of Rs 540. Titagarh Wagons made its debut on the bourses on April 21, 2008.
Founded in 1997, Titagarh Wagons is one of the leading private-sector wagon manufacturers in India. It is in the business of manufacturing railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, and steel and SG iron castings of moderate to complex configuration, among others.
Financials
The company's revenue witnessed steady growth from 2018 to 2020 but declined post that. For instance, as per Groww data, the company's revenue in 2018 stood at Rs 1,271 crore, and in 2019 Rs 1,559 crore increased to Rs 1,766 crore in 2020. In 2021, however, the numbers stood at Rs 1,521 crore; in 2022, the revenue was Rs 1,468 crore. Its EBITDA has seen impressive growth. In 2018, EBITDA was Rs (-) 131 crore and the same stood at Rs 146.34 crore in 2022. However, the company is yet to report profit but has consistently narrowed its losses. At the end of 2022, its loss narrowed to Rs 0.33 crore against Rs 144 crore registered in 2018.
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Shareholding Pattern
As of March 2023, Promoters held 47.83 per cent of the company while Mutual Funds had a 6.44 per cent stake. Retail & Others have 39.64 per cent while Foreign institutions have a 6.07 per cent stake in the company, data show.
Recent news
Last week, the consortium of BHEL and Titagarh Wagons won a tender worth more than Rs 9,600 crore from Indian Railways. The mega order requires the consortium to supply 80 sleeper class Vande Bharat trains to Indian Railways over a period of six years. The 80 Vande Bharat trains are valued at more than Rs 23,000 crore excluding taxes and duties, and the order includes maintenance of the trainsets for 35 years.
Zee Business Analyst Varun Dubey, post the development, had recommended buying BHEL futures and Titagarh Wagons. He had advised adding shares of BHEL and Titagarh for a target of Rs 75 and Rs 300 apiece, respectively.
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