Shares of Titagarh Rail Systems Ltd, formerly known as Titagarh Wagons Ltd, rose sharply in Thursday's trade. The stock surged 9.44 per cent to hit a day high of Rs 1,216.30. It was last seen trading 6.18 per cent higher at Rs 1,180.
Titagarh Rail reported a 64 per cent year-on-year (YoY) jump in its net profit, at Rs 79 crore, for the fourth quarter ended on March 31, 2024 (Q4 FY24), as against Rs 48.2 crore in the year-ago period. Revenue from operations rose 8 per cent to Rs 1,052.4 crore in March 2024 quarter compared to Rs 974.2 crore in the corresponding period last year.
EBITDA (Earnings before interest, tax, depreciation, and amortisation) margin climbed to 11.4 per cent in Q4 FY24 as compared to 9.8 per cent in Q4 FY23.
Technical analysts largely remained 'bullish' on the stock. Immediate support will be at Rs 1,095 and a decisive close above Rs 1,210 level is required for further upside.
"Buy on dip should be your strategy for the stock. Going forward, it has potential to rally towards the Rs 1,400-1,500 zone. Keep stop loss placed at Rs 1,050. Any minor dip should be used as a buying opportunity," Rajesh Palviya, Head Technical Research at Axis Securities, told Business Today TV.
"Titagarh Rail stock price looks bullish on daily charts with support at Rs 1,095. A daily close above resistance of Rs 1,210 could lead it to an upside target of Rs 1,456 in the near term," said AR Ramachandran from Tips2trades.
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 74.59. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 60.23 against a price-to-book (P/B) value of 10.90. Earnings per share (EPS) stood at 19.79 with a return on equity of 19.17.
Titagarh Rail is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal.