Stock to buy for short term: Titagarh Rail Systems share price gained nearly 2% on Thursday, extending its rally for the fifth consecutive session, amid strong buying momentum. Titagarh Rail share price rose as much as 1.95% to ₹942.20 apiece on the BSE. The railway stock has jumped 12% in five trading sessions.
Titagarh Rail Systems is India’s largest wagon manufacturer and has transformed itself into a complete railway transportation company, with its successful entry into the passenger transport sector. The company is also among India’s very few integrated manufacturers of passenger rail systems.
Analysts believe that the PRS division is at an inflection point from where it can become a dominant revenue contributor for the company over the medium term.
The company caters to both domestic and export markets. It is the only Indian company that manufactures both wagons and coaches. It commands a market share of 25-30% in the wagon manufacturing industry.
Antique Stock Broking, in a recent note, said that it believes Titagarh Rail Systems has the strategy and the plan ready for sustained growth in the long term. It expects the company to report 37% earnings CAGR over FY25-27E, and generate strong RoE and RoCE of 18% and 21% in FY27.
The brokerage firm retained a ‘Buy’ rating on Titagarh Rail Systems shares with a target price of ₹1,099 apiece (26x its FY27E EPS).
Technical Outlook
Titagarh Rail Systems share price has recently witnessed a reversal from its previous breakout zone, accompanied by rising volumes and a rebound in the daily RSI from the 40 mark — an area that often signals a shift in momentum, according to Anand Rathi.
A similar supportive structure is visible on the weekly RSI, aligning well with the ongoing price action, it added.
Considering these technical cues, Jigar Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers recommends accumulating Titagarh Rail Systems shares in the ₹930 – ₹870 zone for an upside potential towards ₹1,150, with a stop-loss placed at ₹775 on a daily closing basis.
Titagarh Rail Systems share price target implies an upside potential of 25% from its Wednesday’s closing price. The timeframe for the trade is three months.
Titagarh Rail Systems Share Price Performance
Titagarh Rail Systems share price has gained 3% in one month, and 17% in three months. The railway stock is down 15% on a year-to-date (YTD) basis, and has fallen 47% in the past one year. However, Titagarh Rail Systems share price has jumped 92% in two years, and has delivered multibagger returns of 2,550% in the past five years.
At 10:55 AM, Titagarh Rail Systems share price was trading 1.07% higher at ₹933.95 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
