This 13-bagger stock from rail systems space receives LOA worth Rs 875 crore, watch out!
Over the past three years, the stock has skyrocketed by an astounding 1300 percent, astounding investors with its impressive returns.
Tuesday proved to be a sensational day for the Indian stock markets, as the Nifty bulls roared their way to a blistering century, propelling the index above the coveted 18,800 mark. In a rare show of unity, all sectors participated in the rally, except for Nifty FMCG. Nifty Financial Services, . were the standout performers, each rallying over 1 percent. With buying interest permeating the broader markets, it was a picture-perfect finish for Indian investors.
However, amidst this overall market euphoria, one company, in particular, stole the spotlight on that terrific Tuesday—Titagarh Rail Systems Ltd. This stalwart received a Letter of Acceptance (LOA) from the prestigious Gujarat Metro Rail Corporation (GMRC) Limited, on the auspicious date of June 27, 2023. The LOA highlighted the company's responsibility for the "Design, Manufacture, Supply, Testing, Commissioning, and Training of 72 nos. of Standard Gauge Cars for Surat Metro Rail Phase-I Project I." With a staggering order value of approximately Rs 857 crore, Titagarh Rail Systems is set to embark on this monumental project. The execution is expected to commence 76 weeks after the contract signing and is scheduled to conclude within 132 weeks.
Coinciding with this momentous announcement, the company's stock achieved a fresh 52-week high of Rs 512.80 on the National Stock Exchange (NSE). Opening at Rs 490, the stock maintained its upward trajectory throughout the day, with the opening price turning out to be its lowest point. Ultimately, the stock closed with a commendable gain of 3.65 percent, a testament to the enthusiasm surrounding the company's prospects.
Titagarh Rail Systems Ltd has not only shined in the short term but has also been an exceptional long-term investment. Over the past three years, the stock has skyrocketed by an astounding 1300 percent, astounding investors with its impressive returns. Furthermore, in the last three months alone, the stock has surged by over 105 percent, solidifying its status as a multibagger performer.
Behind this remarkable success lies the company's consistent and robust financial performance. Quarter after quarter, Titagarh Rail Systems has demonstrated its mettle, with its revenue reaching an impressive Rs 974 crore in the last quarter. In fact, its total yearly revenue for the fiscal year amounted to a staggering Rs 2,781 crore, highlighting its significant growth trajectory. Notably, the revenue more than doubled in the quarter ended March 2023 compared to the corresponding period in March 2022. Additionally, the company reported a net profit of Rs 48 crore in Q4FY23, further bolstering investor confidence in its financial stability.
Titagarh Rail Systems Ltd has truly emerged as a force to be reckoned with in the Indian market, captivating both investors and industry experts alike. With a groundbreaking project on the horizon and an exceptional track record of growth, the company's future appears incredibly promising. As investors eagerly watch Titagarh Rail Systems soar to new heights, one thing is certain—this Tuesday proved to be a turning point for both the company and the Indian stock markets as a whole.