Mumbai :
The railway stock surged by nearly 13%, reaching an impressive Rs 813. This marks its new 52-week peak, with a remarkable 24% gain over the last five days.
Incredible Past Record
Investors have struck gold with this stock, enjoying returns exceeding 1,500% in the past three years alone.
From closing at Rs 49 on August 21, 2020, this railway wagon manufacturer’s stock skyrocketed to a staggering Rs 813 on August 24, 2023, translating to an astounding 1,559% return on BSE.
A Rs 1 lakh investment made three years ago would now stand at Rs 16.59 lakh.
By contrast, the Sensex saw a 68.76% increase during this period.
The stock has surged by 70.23% YTD in 2023, boasting a market capitalization of Rs 10,116.46 crore.
Titagarh Rail Systems stock saw a 413% surge in the past year alone, bouncing back 496% from its annual low after hitting a 52-week low of Rs 136.45 on September 28, 2022.
Technical Insights
The Relative Strength Index (RSI) of the stock stands at 72.6, entering overbought territory in technical terms. With a beta of 1, Titagarh Rail Systems stock reflects a year-long average volatility.
Notably, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Expert’s Suggestion
“The approval of Rs 32,000 crore rail expansion projects by the Union Cabinet has stirred movement in most rail stocks.
Titagarh, engaged in manufacturing coach wagons for railways, stands to gain from this government decision.” noted Ravi Singh, President and Head of Research at Share India.
Technical indicators indicate daily and weekly strength,
with momentum pointing towards a target of Rs 850 in the near future, followed by a brief phase of profit booking.
According to a report by Antique Stock Broking,
“Titagarh Rail Systems is now a key integrated manufacturer of passenger rail systems in India. Their unique manufacturing setup positions them for potential turnover growth of Rs 9,000-10,000 crore over the next five years.
With plans to invest Rs 600 crore in the next three years and a recent proposal to raise Rs 289 crore through share sales to a major investor,
Titagarh Rail Systems is shaping up for remarkable expansion”.
As of July 7, 2023, the firm’s nine promoters held a 44.97% stake, while 141,553 public shareholders held 55.03% or 6.99 crore shares.
