TITAGARH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | TITAGARH | Market Cap | 10,348 Cr. | Current Price | 768 ₹ | High / Low | 974 ₹ |
| Stock P/E | 43.7 | Book Value | 193 ₹ | Dividend Yield | 0.13 % | ROCE | 17.5 % |
| ROE | 12.8 % | Face Value | 2.00 ₹ | DMA 50 | 719 ₹ | DMA 200 | 799 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | -0.14 % | PAT Qtr | 62.3 Cr. | PAT Prev Qtr | 51.8 Cr. |
| RSI | 62.3 | MACD | 29.0 | Volume | 6,73,598 | Avg Vol 1Wk | 10,46,320 |
| Low price | 569 ₹ | High price | 974 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.25 |
| 52w Index | 49.2 % | Qtr Profit Var | -9.69 % | EPS | 16.6 ₹ | Industry PE | 53.5 |
📊 TITAGARH shows healthy fundamentals with ROCE at 17.5% and ROE at 12.8%, supported by moderate leverage (Debt-to-equity 0.25). EPS of 16.6 ₹ reflects profitability, and quarterly PAT improved (62.3 Cr. vs 51.8 Cr.), though profit variation (-9.69%) indicates volatility. Valuation is reasonable with P/E at 43.7 compared to industry average of 53.5, and PEG ratio of 0.59 suggests undervaluation relative to growth. Dividend yield is low at 0.13%. Technical indicators (RSI 62.3, MACD 29.0) show bullish momentum, with price trading above 50 DMA (719 ₹) but slightly below 200 DMA (799 ₹).
💡 Entry Price Zone: Attractive accumulation between 740 ₹ – 770 ₹ near support levels. Buying above 800 ₹ carries mild resistance risk.
📈 Long-Term Holding Guidance: TITAGARH is fundamentally strong and suitable for long-term holding (3–5 years). Investors should monitor earnings consistency and institutional flows. Holding is justified if profitability sustains and industry demand remains robust.
Positive
- Strong ROCE (17.5%) and ROE (12.8%).
- EPS of 16.6 ₹ supports profitability.
- PEG ratio of 0.59 indicates undervaluation relative to growth.
- Quarterly PAT improved (62.3 Cr. vs 51.8 Cr.).
- Technical indicators show bullish momentum (RSI 62.3, MACD 29.0).
Limitation
- Dividend yield is very low (0.13%).
- Quarterly profit variation (-9.69%) reflects earnings volatility.
- DII holdings decreased (-0.14%), showing domestic caution.
- Trading slightly below 200 DMA (799 ₹), indicating mild resistance.
Company Negative News
- Profit variation shows inconsistency in earnings growth.
- Domestic institutional investors reduced holdings.
Company Positive News
- Quarterly PAT improved compared to previous quarter.
- Foreign investor holdings increased slightly (+0.01%).
Industry
- Industry PE at 53.5, while TITAGARH trades at 43.7, showing relative undervaluation.
- Railway and engineering sector benefits from infrastructure demand and government spending.
Conclusion
✅ TITAGARH is a fundamentally strong candidate with undervaluation relative to peers, supported by improving profitability and healthy return metrics. Best suited for long-term investors who accumulate near 740–770 ₹. Exit opportunities may arise near 900–950 ₹ if momentum sustains. Conservative investors should monitor earnings stability before committing heavily.
Would you like me to extend this into a railway sector peer overlay (e.g., comparing Titagarh with RVNL, IRCON, Texmaco) to highlight relative valuation and growth positioning?