Titagarh Rail shares fall below Rs 800 mark after 15 months, oversold on charts; what's next?

Shares of Titagarh Rail Systems have closed below the Rs 800 mark after 15 months. The multibagger stock closed at Rs 789.20 on November 10, 2023. Since then, the railway stock closed below the Rs 800 mark for first time in the previous session. Titagarh Rail stock ended 4.13% lower at Rs 770.90 on Monday. 

The multibagger stock also fell to its 52 week low of Rs 762.80. Titagarh Rail Systems market cap fell to Rs 10,382 crore. Total 0.88 lakh shares of the firm changed hands amounting to a turnover of Rs 6.81 crore. Titagarh Rail stock has risen 258% in two years, 699% in three years and zoomed 1,540% in five years. 

The stock hit 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 24.7, signaling it's trading in the oversold zone. 

Brokerage Nuvama has turned bearish on the stock in terms of price target. It 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 expects the stock to trade in a range of Rs 700 and Rs 880 for the short-term. 

"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,"  said Patel

AR 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 clocked a 16% year-on-year (YoY) delcine 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.

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.