For the quarter that ended on March 31, 2023, Titagarh Wagons reported an over two-fold jump in the net profit to Rs 48 crore while revenue surged 131 per cent to Rs 974.21 crore. Shares of Titagarh Wagons surged another 5 per cent on Thursday to hit new all-time highs as the company mulls plans for fundraising. The company board of directors will meet on Saturday, June 10, to consider the proposal, the company said in an exchange filing on Wednesday. The fundraising will be done either through a rights issue, preferential share issue, or the qualified institutional placement of equity shares, the company said in an exchange filing. Investors will remain focused on the route that the company chooses for the fundraise. Shares of Titagarh Wagons surged about 5 per cent to Rs 409.20 on Thursday, its new record highs, subsequent to the announcement. The company was commanding a total market capitalisation of close to Rs 4,700 crore. The scrip had settled at Rs 409.20 on Wednesday. Interestingly, shares of Titagarh Wagons have rallied about 340 per cent from its 52-week low at Rs 93.35 on June 20, 2023. The stock has gained 300 per cent in the last one year, while the stock is up 1,600 per cent from its Covid-19 lows around Rs 24 in March 2020. Despite the jaw-dropping return in the last one and three years, analysts continue to see more upside in the counter. The company has been bagging multiple orders recently and experts believe that the company is going to be the major beneficiary of the 'Vanda Bharat' scheme. The company bagged the Vande Bharat and the forged wheelsets order during the quarter, lifting its order book to Rs 27,500 crore. Execution on Indian Railways' wagon order is progressing well – the company now produces 650-700 wagons per month, said Nuvama Institutional Equities. "Titagarh Wagons is benefiting from surging railway capex. We revise target P/E up from 22 times to 25 times, with FY24E and 25E EPS 6 per cent and 22 per cent, respectively," it added, retaining the buy rating on the stock with a target price of Rs 477, suggesting an upside of 22 per cent from its previous close. For the quarter that ended on March 31, 2023, the company reported an over twofold jump in the net profit to Rs 48 crore while revenue surged 131 per cent to Rs 974.21 crore. The company recently rebranded itself from Titagarh Wagons to Titagarh Rail System. Brokerage firm B&K Securities had initiated coverage on the stock in April with a 'buy' call and a target price of Rs 404, which has already been met. Another brokerage firm Ashika Stock Broking said that the capital goods players including Titagarh Wagons would be beneficiaries of massive capex in Indian railways in the next 5 years.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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