The brokerage firm affirmed its observation of a strong resurgence in India’s railways and expressed confidence in Titagarh being a major beneficiary of it.
Morgan Stanley views freight as a substantial revenue driver for Titagarh while recognising the passenger business as a promising avenue for growth. It anticipates a strong 28% earnings compound annual growth rate (CAGR) over FY 24-27.
Considering a valuation of 35x FY26 PE, Morgan Stanley believes it’s reasonable, given the company’s strong earnings visibility and improving return ratios.
Also Read: Election Jitters? Why stock market’s fear gauge VIX is behaving strangelyAs of 10:27 am, the stock was trading at Rs 1,109.4 on the BSE. It has recorded a remarkable surge of over 40% in the past six months and delivered multibagger returns of 220% in the last one year.Earlier in February, the company received an order from the Ministry of Defence, Government of India for the procurement of 250 specialised wagons. The order value was approximately Rs 170 crore.In technical terms, the relative strength index (RSI) of the stock is currently at 60.9, signalling it’s neither trading in the overbought nor the oversold territory. Additionally, the MACD is at 26.3, which is above its center and signal line, this is a bullish indicator.Titagarh Rail stock stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs).
Titagarh Rail Systems (formerly known as Titagarh Wagons) is the largest private-sector manufacturer of wagons and an established player in passenger coaches.
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