India, a land where railways are not just a mode of transportation but the very lifeline that connects its diverse landscapes, from bustling cities to remote villages. And in the grand vision of India’s future, there’s an irresistible urge to make these railways faster, sleeker, and more efficient than ever before.
But in the midst of this transformative endeavor, a question looms large in the minds of investors and enthusiasts alike: Can the share price of Titagarh Rail Systems Ltd., a major player in India’s rolling stock manufacturing, reach the coveted 1000-rupee mark?
So, let’s embark on a journey through the intriguing twists and turns of Titagarh Rail Systems Ltd.’s share price from 2023 to 2030. Along the way, we’ll explore the financial landscape, dissect key metrics, and uncover insights into return on equity, profit growth, and dividend payouts.
About Titagarh Rail Systems
Back in 1997, Titagarh Wagons Limited set its wheels in motion, and since then, they’ve been a driving force in India’s transportation sector. What’s their specialty, you ask? Well, they’re the wizards behind Freight Wagons, Passenger Coaches, Metro Trains, Steel Castings, Bridges, and even Ships. And here’s the twist – they don’t just serve India; they take their products worldwide!
Now, let’s talk about where they really shine. They’re masters at crafting Freight Rolling Stock, Passenger Rolling Stock, and they’ve even got their hands in Shipbuilding, Bridge Construction, and Defense projects. It’s like they’ve got a toolkit for all things transportation!
But wait, there’s more to this story. They’ve got some cool companions in the form of subsidiaries and strategic collaborations. One of their close allies is Titagarh Bridges and International Private Limited (TBIPL), and they’ve joined forces with other companies for exciting joint ventures.
Here’s the kicker – they’re not just players; they’re leaders. They’ve snagged a whopping 32% of orders from the Indian Railways. That’s a testament to their prowess in the field.
And the journey doesn’t stop here. They’re gearing up for more growth by raising funds to expand their operations. The future looks promising for Titagarh Wagons Limited as they navigate the ever-evolving landscape of transportation solutions.
Recent News Around Titagarh Rail Systems
- Titagarh Rail Systems lands a Rs 3.5 billion contract for Ahmedabad Metro Phase-II, involving the production and supply of 30 standard gauge cars along with testing, commissioning, and training. ( 4 Sep )
- On Thursday, Titagarh Rail Systems Limited (TRSL) inaugurated the maiden diving support craft (DSC) for the Indian Navy at its shipyard located in Titagarh, West Bengal. (31 Aug)
- Titagarh Wagons clinched a significant contract valued at Rs 857 crores from the Gujarat Metro Rail Corporation for the Surat Metro Rail Phase-I Project. (27 Jun )
Q1 FY 2024 Key Points And Summary:
- Revenue: The company’s total income for the period is 911 crore rupees.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) amount to 106 crore rupees, reflecting operational profitability.
- PBT: Profit Before Tax (PBT) is reported at 90 crore rupees, indicating earnings before tax deductions.
- PAT: After accounting for all expenses, including taxes, the company’s net profit (PAT) is 68 crore rupees.
- Revenue Growth (YoY): The company has experienced significant year-over-year revenue growth, with a remarkable increase of 110%.
- EBITDA Margin: The EBITDA margin, a measure of operational efficiency, stands at a healthy 11.65%.
- PBT up by 209% Y-o-Y: Notably, the company has achieved a substantial 110% growth in revenue and a remarkable 209% increase in Profit Before Tax (PBT) year-over-year.
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| When | Maximum Price | Minimum Price |
| September 2023 | ₹842.70 | ₹766.09 |
| October 2023 | ₹826.18 | ₹751.07 |
| November 2023 | ₹809.98 | ₹736.34 |
| December 2023 | ₹836.71 | ₹760.64 |
Throughout the entire year, the company’s stock prices experienced fluctuations, with some months seeing higher values and others lower
- The peak share price, the highest value the stock reached in terms of price, was recorded in September 2023, reaching ₹842.70 per share.
- On the other hand, the lowest share price for the year occurred in November 2023, hitting ₹736.34 per share. This meant that in November, the stock price dropped to its lowest point for the year, and investors could purchase a share for as little as ₹736.34.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹853.78 | ₹742.42 |
| February 2024 | ₹871.21 | ₹757.57 |
| March 2024 | ₹888.99 | ₹773.03 |
| April 2024 | ₹863.09 | ₹750.52 |
| May 2024 | ₹850.34 | ₹739.42 |
| June 2024 | ₹880.95 | ₹766.04 |
| July 2024 | ₹872.14 | ₹758.38 |
| August 2024 | ₹907.03 | ₹788.72 |
| September 2024 | ₹943.31 | ₹820.27 |
| October 2024 | ₹924.81 | ₹804.18 |
| November 2024 | ₹952.56 | ₹828.31 |
| December 2024 | ₹976.37 | ₹849.02 |
In 2024, the highest share price for the year was observed in December, reaching an impressive ₹976.37 per share. On the other hand, the lowest share price for the entire year occurred in January, dipping to ₹742.42 per share.
This data indicates the significant price fluctuation within the year, with the share value experiencing a substantial increase from its lowest point in January to its highest point in December.
| when | Maximum Price | Minimum Price |
| January 2025 | ₹995.90 | ₹766.07 |
| February 2025 | ₹1,021.43 | ₹785.72 |
| March 2025 | ₹1,061.27 | ₹816.36 |
| April 2025 | ₹1,040.46 | ₹800.35 |
| May 2025 | ₹1,010.15 | ₹777.04 |
| June 2025 | ₹1,055.61 | ₹812.01 |
| July 2025 | ₹1,034.91 | ₹796.09 |
| August 2025 | ₹1,066.92 | ₹820.71 |
| September 2025 | ₹1,104.26 | ₹849.43 |
| October 2025 | ₹1,132.97 | ₹871.52 |
| November 2025 | ₹1,161.30 | ₹893.31 |
| December 2025 | ₹1,190.33 | ₹915.64 |
In the year 2025, the share price saw its peak in December, reaching ₹1,190.33, whereas its lowest point was in January when it touched ₹766.07. This data underscores substantial price variability over the course of the year, with the share value showing considerable upward movement from its January low to its December high.
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹1,249.85 | ₹874.89 |
| 2027 | ₹1,374.83 | ₹962.38 |
| 2028 | ₹1,924.76 | ₹962.38 |
| 2029 | ₹1,666.46 | ₹833.23 |
| 2030 | ₹2,166.40 | ₹1,516.48 |
Let’s take a closer look at the company’s share prices between 2026 and 2030. It’s been quite a rollercoaster ride!
In 2026, the share price ranged from a high of ₹1,249.85 to a low of ₹874.89. Moving on to 2027, it hit a high of ₹1,374.83 and a low of ₹962.38. Now, 2028 was interesting; the share price showed a broader range with the highest at ₹1,924.76 and the lowest at ₹962.38.
Jumping to 2029, the share price peaked at ₹1,666.46 and touched a low of ₹833.23. Finally, in 2030, things got even more exciting with the share price ranging from a high of ₹2,166.40 to a low of ₹1,516.48.
These ups and downs in share prices over these five years tell us that the company’s performance in the market has been quite dynamic. It’s a reminder that the stock market can be full of surprises!
Titagarh Rail Systems Ltd Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (In Crore INR) |
1,559 | 1,766 | 1,521 | 1,931 | 2,780 |
| Expenses + (In Crore INR) |
1,550 | 1,740 | 1,440 | 1,798 | 2,529 |
| Operating Profit (In Crore INR) |
9 | 27 | 81 | 133 | 251 |
| OPM % | 1% | 2% | 5% | 7% | 9% |
| Other Income + (In Crore INR) | 25 | 34 | 25 | 23 | 34 |
| Interest (In Crore INR) |
65 | 88 | 81 | 93 | 81 |
| Depreciation (In Crore INR) |
24 | 29 | 30 | 33 | 22 |
| Profit before tax (In Crore INR) | -56 | -57 | -6 | 29 | 181 |
| Tax % | 59% | 36% | -237% | 102% | 31% |
| Net Profit + (In Crore INR) |
-23 | -36 | -19 | -1 | 126 |
| EPS in Rs | -2.47 | -2.96 | -1.26 | -0.03 | 10.89 |
| Dividend Payout % | -12% | 0% | 0% | 0% | 5% |
- Sales (Revenue): Sales have steadily increased over the years, from ₹1,559 in March 2019 to ₹2,780 in March 2023. This demonstrates consistent revenue growth.
- Expenses: Operating expenses have also risen from ₹1,550 in March 2019 to ₹2,529 in March 2023. This indicates an increase in the cost of doing business.
- Operating Profit and Operating Profit Margin (OPM %): Operating profit has shown positive growth over the years, increasing from ₹9 in March 2019 to ₹251 in March 2023. The Operating Profit Margin (OPM %) has improved from 1% to 9% during this period, indicating increased operational efficiency and profitability.
- Other Income: Other income, which includes sources of income other than the core operations, has remained relatively stable, ranging from ₹23 to ₹34.
- Profit before Tax: The company has shown a significant improvement in profit before tax, transitioning from negative values in March 2019 and 2020 to positive values, with the highest at ₹181 in March 2023.
- Net Profit: Net profit has shown a remarkable turnaround, moving from negative values to a positive net profit of ₹126 in March 2023.
To sum it up, the company’s financial performance has exhibited a favorable trajectory over the years. It has successfully augmented its sales, enhanced operational effectiveness, and transformed a previously negative profit into a positive one. Nonetheless, certain atypical figures, like the negative tax rate observed in March 2021, may necessitate closer scrutiny. Furthermore, it’s noteworthy that the company has initiated dividend payments to its shareholders in the more recent years.
FAQs
The estimated share price target for 2023 is approximately ₹791.47 based on monthly averages.
Assuming a continued upward trend, you might estimate the share price target for 2030 to be between the maximum prices of 2029 and 2030, which is ₹2,166.40 and ₹1,516.48, respectively.
What Is The Return On Equity (ROE) ?
The current return on equity (ROE) is 15%.
What Is The Titagarh Rail Systems Ltd Dividend Payout ?
The dividend payout for the company is 5%. This means that in March 2023, the company distributed 5% of its profits as dividends to its shareholders. Prior to that, the company did not pay any dividends in the initial years.
Should One Invest In Titagarh Rail Systems Ltd?
Taking a broader look at the company’s financial landscape, it’s got some interesting traits. With a Market Cap of ₹10,105 Cr and a current share price of ₹795, the stock is trading at nearly ten times its book value. That’s certainly something to ponder.
The company has faced its fair share of challenges, like a low return on equity over the last three years and a seemingly high cost of borrowing. But, hey, they’ve made strides in reducing debt and managing their working capital better.
What’s truly encouraging is the company’s track record of delivering robust profit growth, with a 24.1% CAGR over the last five years. That’s no small feat. Plus, they’ve improved debtor days significantly, from 99.1 to 36.7 days.
Looking forward, there’s optimism in the air, with expectations of good quarters ahead. The company’s Return on Capital Employed (ROCE) is at 17.6%, and Return on Equity (ROE) stands at 14.9%, showing a healthy financial performance.
But, remember, the stock market is a wild place. It’s influenced by countless factors, so investing should always be done with careful consideration and a long-term perspective.
In the end, the stock market is like an adventure, full of twists and turns. So, whether you’re a seasoned investor or just starting out, keep in mind that patience and diligence can go a long way in this ever-evolving financial world.
What did we learn?
- 1 About Titagarh Rail Systems
- 2 Recent News Around Titagarh Rail Systems
- 3 Q1 FY 2024 Key Points And Summary:
- 4 How to purchase Titagarh Rail Systems Ltd shares?
- 5 Titagarh Rail Systems Ltd Share Price Target 2023 To 2030
- 6 Titagarh Rail Systems Ltd Financial Condition (Last 5 Years)
- 7 FAQs
- 8 Should One Invest In Titagarh Rail Systems Ltd?
