Titagarh Rail Systems witnessed a robust surge of over 8% in early Monday trading following the announcement of a new order from the Ministry of Defence. Titagarh Rail Systems shares soared to ₹1,037.55 apiece on the BSE, marking a substantial increase of 8.47%.
The Ministry of Defence has awarded Titagarh Rail Systems a contract for the supply of 250 specialized wagons, valued at ₹170 crore. According to the company’s regulatory filing, the execution of the contract is slated to commence 12 months after signing and conclude within 36 months.
In January 2024, Titagarh Rail Systems achieved a significant milestone in India’s rolling stock industry by manufacturing 1,021 wagons, marking the highest monthly production by any player to date. Additionally, during the quarter ending in December 2023, the company reported a net profit of ₹75.03 crore, marking a notable 91% increase compared to Q3FY23.
In Q3FY24, the company’s standalone net revenues reached ₹954.68 crore, reflecting a growth of 24.57%, while the EBITDA margin stood at 11.59%, totaling ₹110.67 crore, marking a significant increase of 52.30% year-over-year.
Umesh Chowdhary, Vice Chairman and Managing Director of Titagarh Rail Systems, expressed optimism about the company’s future growth, attributing substantial year-over-year growth in both Freight Rolling Stocks and Passenger Rolling Stocks to the government’s steadfast commitment to developing top-notch rail infrastructure in India.
Titagarh Rail Systems boasts an order book valued at ₹27,466 crore, showcasing diversification across its business segments of Freight Rolling Stock and Passenger Rolling Stock.
Over the past year, the railway stock has delivered impressive returns, with multibagger returns exceeding 378%, and a remarkable surge of 1,957% over three years.
As of 9:45 am, Titagarh Rail Systems shares were trading 7.34% higher at ₹1,026.75 apiece on the BSE.
