Titagarh Rail (TRIL) Stock Soars 8%, Hits 52-Week Peak Following Stellar Q4 Earnings

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• Titagarh Rail Systems Ltd’s share price surged by nearly 8% on Friday, reaching a 52-week high of ₹1,308.95 on the BSE following impressive Q4 results.
• The stock has appreciated over 170% in the past year, benefiting from increased railway capital expenditures and enhancing investor returns.
• “The robust order book and strategic expansions underscore our growth trajectory,” noted a company spokesperson.

Explore the factors driving Titagarh Rail Systems’ rapid growth and what investors can expect moving forward.

Firm Q4 Performance, Strong Growth

The company reported an 8% increase in net profit at ₹83 crore for the January-March 2024 quarter. EBITDA rose by 11.41% to ₹120 crore, with revenues climbing 8% year-on-year to ₹1052 crore. For the fiscal year 2024, Titagarh Rail Systems’ revenue surged by 38.58% to ₹3,853 crore, while net profit grew by 7.71% to ₹297 crore. Over the past five years, the company’s revenue has grown at a CAGR of 21.02%, with EBITDA and profit before tax increasing by 28.50% and 44.51% CAGR, respectively.

Strong Order Book

Titagarh Rail Systems concluded the fiscal year with a robust order book valued at ₹14,750 crores, with passenger rolling stock accounting for 46% of this total. The joint ventures’ share of the order book stood at ₹13,326 crore, with orders for Vande Bharat trains with BHEL comprising more than half of this figure. The combined order book is approximately ₹28,000 crore. Analysts from Nuvama Institutional Equities estimate that about ₹14,800 crore worth of orders need to be executed over the next three to five years.

Metro Coach Supplies to Aid Growth

Revenue from the passenger rolling stock segment for Q4 was impacted due to the near completion of the Pune metro contract. Other projects, such as the Bangalore metro (CRRC), Surat Ahmedabad metro, and Vande Bharat trains, are in various stages of execution with contractual deliveries expected to commence soon. Nuvama analysts predict that work on the Ahmedabad and Surat Metro rail coach orders will pick up later this fiscal year. By the end of FY25, Titagarh Rail Systems anticipates producing 15–20 cars per month. As operations scale, margins in the passenger coach segment are expected to rise to 10%, potentially reaching 14–15% once the propulsion system, developed in partnership with ABB, is operational.

Conclusion

Titagarh Rail Systems Ltd has demonstrated strong financial performance and strategic growth in its sector. With a significant order book and ongoing projects poised to boost future revenues and profits, the company is well-positioned to continue delivering value to its investors. The focus on expanding production capabilities and enhancing operational efficiencies is likely to further improve profitability and sustain its multibagger status in the market.

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