TITAGARH - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Breakdown

Profitability

ROCE: 17.5% and ROE: 12.8% — solid, indicating efficient capital deployment.

EPS: ₹20.4 — decent, though quarterly PAT dropped from ₹78.1 Cr. to ₹42.8 Cr. (-40%) — short-term earnings volatility.

Debt-to-equity: 0.25 — moderate leverage, manageable for a capital-intensive business.

Dividend Yield: Just 0.11% — not a draw for income investors.

Institutional Sentiment

Decline in both FII (-2.14%) and DII (-1.73%) holdings — suggests cautious outlook from large investors.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 46.4 Slightly below industry average (49.6) — fairly valued.

P/B Ratio ~5.06 Reasonable for a growth-oriented industrial firm.

PEG Ratio 0.63 Attractive — implies undervaluation relative to earnings growth.

Intrinsic Value ~₹880–₹920 (est.) Current price of ₹946 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Rail and urban transit manufacturing — freight wagons, metro coaches, and semi-high-speed trains.

Strengths

Strong order book (~₹30,000 Cr.) including Vande Bharat and metro contracts

1

.

Strategic partnerships (e.g., Stadler Rail JV) and backward integration enhance margins

1

.

Beneficiary of India’s infrastructure push and “Make in India” initiatives.

Challenges

Earnings volatility and supply chain risks.

RSI at 67.9 — nearing overbought territory.

MACD at 22.9 — bullish momentum, but may be peaking.

📈 Entry Zone & Technicals

DMA 50: ₹879, DMA 200: ₹925 — price is above both, indicating strength.

RSI: 67.9 — approaching overbought.

MACD: 22.9 — strong bullish momentum.

📌 Entry Zone: ₹880–₹910 — ideal for accumulation on pullbacks.

🕰️ Long-Term Holding Guidance

2025 Target: ₹900–₹1,100

2

2030 Target: ₹1,850–₹2,700

2

Outlook: Strong long-term potential driven by urbanization, rail modernization, and export opportunities

1

.

Holding Strategy: Suitable for long-term investors with moderate risk appetite. Watch for margin expansion and execution of metro and semi-high-speed rail projects.

Let me know if you'd like a forecast model or a peer comparison with RVNL or Texmaco Rail.

1

marketinindia.com

2

moneymintidea.com

Edit in a page