Shares of Titagarh Rail Systems are in a downtrend since the firm's Q3 earnings were announced on February 13. The multibagger stock is down 7.24% in two sessions. In the current session, Titagarh Rail shares fell 4% to their 52 week low of Rs 771.35. Titagarh Rail Systems market cap fell to Rs 10,531 crore. Total 0.41 lakh shares of the firm changed hands amounting to a turnover of Rs 3.24 crore. However, Titagarh Rail stock has clocked multibagger returns of 261% in two years, 705% in three years and zoomed 1,552% in five years.
The stock touched its 52 week high of Rs 1896.50 on June 27, 2024.
Titagarh Rail stock has a one-year beta of 1.5, indicating very high volatility during the period.
In terms of technicals, the relative strength index (RSI) of the stock stands at 27.3, signaling it's trading in the oversold zone.
Brokerage Nuvama has reduced its price target to Rs 1,197 from the earlier Rs 1,870.
"Deferral of execution timelines for wagons, Vande Bharat and existing metro rail orders, subdued tendering (both in wagons and passenger coach segment) along with a nil hike in outlay for railways in the budget compel us to slash FY25E/26E/27E EPS by 10%/12%/13% and P/E multiple to 35x from 52x. Maintain ‘BUY’ with a revised TP of INR 1,197 (earlier INR1,870) as we roll forward valuation to Q3FY27," said Nuvama.
Jigar S Patel, manager at Anand Rathi said, "Support will be Rs 730 and resistance at Rs 800. A decisive move above the Rs 800 level may trigger a further upside of Rs 880. The expected trading range will be between Rs 700 and Rs 880 for the short-term."
A R Ramachandran, SEBI registered Independent analyst says, "Titagarh Rail stock price is bearish but also oversold on the Daily charts with next support at Rs 758. Investors should buy only if Daily close is above resistance of Rs 828 for a target of Rs 969 in the near term."
Titagarh Rail reported a 16% year-on-year (YoY) fall in net profit at Rs 62.8 crore for the third quarter against a net profit of Rs 74.8 crore in Q3 of the previous fiscal. Revenue from operations fell 5.5% to Rs 902.2 crore in Q3 against Rs 954.7 crore in the corresponding period of the preceding fiscal.
EBITDA slipped 9.6% to Rs 100.1 crore in Q3 over Rs 110.7 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 11.1% in the reporting quarter as compared to 11.6% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Titagarh Rail Systems is engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment and bridges, and ships. The company operates through three segments: freight rolling stock, passenger rolling stock, and shipbuilding, bridges & defence.