Heavy Buying in this multibagger Railway Stock: Gains Over 2,780 per cent in 5 Years, Morgan Stanley Asia Singapore PTE bought 7,63,738 shares at Rs 1,120
The stock has given returns of 45 per cent in a year and a whooping multibagger return of more than 2,700 per cent in 5 years.
Morgan Stanley Asia Singapore PTE bought 7,63,738 shares of Titagarh Rail System for an average price of Rs 1,120 on October 16 via a bulk deal. Smallcap World Fund Inc sold 7,90,976 shares of Titagarh Rail System for an average price of Rs 1,120.12. Titagarh Rail Systems shares closed 1.27 per cent down at Rs 1,132.45on the NSE.
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Earlier, the company had requested the Indian Railways to short-close 3,089 BCNA wagons out of a total ordered quantity of 24,177 wagons. These wagons were pertaining to the tranche number 3 which were to be delivered between September 01, 2023 to February 29, 2024 but could not be delivered on account of various reasons.
The said request was been accepted by the Indian Railways under the terms of the contract and as a result of this short closure, and also placement of an additional order by the Indian Railways of 716 BOXNHL wagons against the same contract in favour of the Company, the total revised order quantity of the said order stands at 21,804 wagons amounting to Rs 7,100 Crores. This decision was taken in the overall interest of the Company to balance the available capacity with workloads including execution of private wagon orders and thereby help save incurring liquidated damages on the said quantity.
The company informed investors that it has received a favourable award against an earlier wagon contract dated September 30, 2020, by which a quantity of 390 BCNA wagons valued at Rs 129.44 crores, which was short closed by the Indian Railways, has been reinstated in favour of the Company. The delivery of these wagons, according to the award, have to be made in 6 months from the award date.
Titagarh Rail Systems Ltd (Formerly Titagarh Wagons Limited), incorporated in 1997, is mainly engaged in the manufacturing and selling of Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised Equipments & Bridges, Ships, etc. The company caters to both domestic and export markets.
This mid-cap stock is trading at Rs 1,133. The company has a market cap of Rs 15,253 crore. The stock has given returns of 45 per cent in a year and a whooping multibagger return of more than 2,780 per cent in 5 years. The company has delivered good profit growth of 84.5 per cent CAGR over last 5 years.
Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.