This railway stock has the power to run at rocket speed!
If you have invested or are thinking of investing in Titagarh rail Systems Limited, a company that manufactures railway coaches and freight trains, then this news may be important for you. In fact, after showing great growth in the last five years, this stock has fallen sharply. After reaching its all-time high of Rs 1,896.50 in june 2024, this stock has now fallen by 57 per cent. However, experts now see hope for this stock to jump again. Let us tell you in this news why this stock fell and why experts now expect it to rise.
Why did the decline happen?
There were many reasons behind the decline in Titagarh rail Systems Limited, including supply chain disruptions, fluctuations in raw material prices and slow delivery of orders. Due to these challenges, the company's income grew by only 2 per cent and reached Rs 2,862 crore in the first nine months of 2024-25. At the same time, net profit (PAT) also registered an annual growth of only 6 per cent and the margin was affected due to rising costs.
Can the stock rise again?
Market experts believe that due to the company's strong fundamentals and technical indicators in the railway sector, this stock may rise again. According to The Mint report, a report by Geojit Financial services says that this stock can go up to Rs 1,050 in the next 3-6 months, which can show a growth of 29 per cent from its current level of Rs 815.65. Let us tell you that this stock has given a return of 3,066 percent in the last 5 years.
Why are experts bullish?
In fact, experts are bullish about Titagarh rail Systems Limited due to its strong order book and growth prospects. Let us tell you, the company currently has an order book of Rs 25,333 crore, which is 6.2 times the estimated sales of 2025. At the same time, in the first nine months of 2024-25, the company has received new orders worth Rs 1,106 crore, which includes 13,689 wagons and 1,589 metro and Vande Bharat coaches. New divisions like Signaling and Safety Systems and Shipbuilding and Maritime Systems will start contributing to revenue from 2026.
click and follow Indiaherald WhatsApp channel