Rs 27,890 crore order book: This multibagger railway wans company receives order worth Rs 350 crore from Gujarat Metro Rail Corporation Ltd; scrip hit 52-week high!

The stock gave multibagger returns of 130 per cent in just 3 months, whereas the BSE small-cap Index is up by 4.74 per cent

On Friday, shares of Titagarh Rail Systems Ltd surged 2.55 per cent, reaching a new 52-week high of Rs 830 per share, up from its previous closing of Rs 809.40.

Titagarh informed that the company has received a letter of acceptance (LOA) from the Gujarat Metro Rail Corporation (GMRC) Limited w.r.t. design, manufacture, supply, testing, commissioning and training of 30 nos. of standard gauge cars for Ahmedabad Metro Rail Phase-II Project. The order value is approximately Rs 350 crore prototype has to be delivered within 70 weeks from LOA and delivery completion is 94 weeks from LOA.

According to its Quarterly Results, showing that net sales increased by 110.89 per cent to Rs 910.76 crore and net profit increased by 5,040 per cent to Rs 61.78 crore in Q1FY24 compared to Q1FY23. The order book stands at Rs 27,890 crore as of June 30, 2023 (Passenger Rolling Stocks orders amounting to Rs 12,716 crore and Freight Rolling Stocks orders amounting to Rs 6,300 crore).

In FY23, net sales increased by 44 per cent to Rs 2,780 crore compared to FY22. The company reported a net profit of Rs 126 crore in FY23, compared to a net loss of Rs 1 crore in FY22. The company has reduced its debt and delivered a strong profit growth of 24.1 per cent CAGR over the last 5 years.

 Titagarh Rail Systems Ltd., also known as Titagarh Wagons Ltd., a leading railway wagon company in India, mainly manufactures and sells freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialized equipment and bridges, ships, etc. Titagarh Wagons has received multiple orders for metro coaches, wagons, and trainsets in recent months. The company is also expanding its capacity and setting up component facilities in both operating segments.

The stock gave multibagger returns of 130 per cent in just 3 months, whereas the BSE Small-Cap Index is up by 4.74 per cent and has gained over 400 per cent in 1 year. Do you own this railway wans stock in your portfolio?

Disclaimer: This article is for informational purposes only and not intended as investment advice.