Multibagger Titagarh Rail Systems share price rises almost 8% to 52-week high post Q4 results

Stock Market Today: Multibagger Titagarh Rail Systems Ltd share price gained almost 8% on Friday to scale 52-week highs of ₹1,308.95 on the BSE. The company had reported Q4 results after the market hours on Thursday. 

Titagarh Rail Systems share price has risen more than 170% during last one year to give Multibagger returns to the investors. The rising railway capex has lifted earnings outlook leading to gains in Titagarh Rail Systems share price.

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Firm Q4 performance, strong growth

The net profit at ₹83 crore grew 8% year-on-year during the January- March 2024 quarter. The Earnings before interest tax depreciation and amortisation (Ebitda) at ₹120 crore grew 11.41% year-on-year. The Titagarh Rail Systems revenues at ₹1052 Crore also grew 8% year-on-year.

For the financial year 2024 Titagarh Rail System reported revenue at ₹3,853 crore had improved 38.58% . Its net profit at ₹297 crore grew 7.71%.

Over the last 5 years Titagarh Rail Systems Revenue have grown by  21.02% CAGR (compound annual growth0, Ebitda up by 28.50% CAGR) and Profit before tax by 44.51% CAGR.

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Strong Order Book

Titagarh Rail Systems has ended the fiscal year with strong order book worth ₹14,750 crores,  Passenger Rolling Stock comprised 46% of this order book

Besides its share of order book in the Joint ventures stood at ₹13,326 crore. The orders for Vande Bharat with BHEL comprised more than half of this order book.

Hence combined order book stands at around ₹28000 Crore . 

Analysts at Nuvama Institutional Equities highlighted that around ₹R14,800 crore orders have to be executed over the next three–five years (further subdivided into ₹8000 crore orders for freight segment and the balance for passenger segment).

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Metro coach supplies to aid growth

Revenue of the passenger rolling stock segment for Q4 has been impacted on account of near completion of the Pune metro contract, highlighted Titagarh Rail Systems.  Other projects in this segment i.e. Bangalore metro (CRRC), Surat Ahmedabad metro and Vande Bharat trains are in various stages of execution and contractual deliveries will start subsequently.

As per analysts at Nuvama, Work on the Ahmedabad and Surat Metro rail coach orders should also pick up later this fiscal and by end-FY25, Titagarh Rail Systems expects to produce 15–20 cars a month. Due to operating leverage, the Titagah Rail Systems expects margins in the passenger coach segment to rise to 10% as per Nuvama and once the propulsion system (being produced in partnership with ABB) comes through over the next few years, margins in the segment could touch 14–15%. said Nuvama.

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