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TITAGARH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | TITAGARH | Market Cap | 8,730 Cr. | Current Price | 649 ₹ | High / Low | 974 ₹ |
| Stock P/E | 36.8 | Book Value | 193 ₹ | Dividend Yield | 0.15 % | ROCE | 17.5 % |
| ROE | 12.8 % | Face Value | 2.00 ₹ | DMA 50 | 735 ₹ | DMA 200 | 831 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.17 % | PAT Qtr | 62.3 Cr. | PAT Prev Qtr | 51.8 Cr. |
| RSI | 35.6 | MACD | -35.3 | Volume | 7,79,857 | Avg Vol 1Wk | 7,62,859 |
| Low price | 610 ₹ | High price | 974 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.25 |
| 52w Index | 10.7 % | Qtr Profit Var | -9.69 % | EPS | 16.6 ₹ | Industry PE | 47.9 |
📊 Financials
- Revenue Growth: Moderate, PAT improved to 62.3 Cr from 51.8 Cr
- Profit Margins: EPS at 16.6 ₹, showing profitability
- Debt Ratios: Debt-to-equity at 0.25, manageable leverage
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 17.5% and ROE 12.8% indicate solid efficiency
💹 Valuation
- P/E Ratio: 36.8, lower than industry average (47.9), suggesting fair valuation
- P/B Ratio: ~3.36 (Current Price / Book Value), moderate
- PEG Ratio: 0.50, indicating undervaluation relative to growth
- Intrinsic Value: Fairly valued with potential upside
🏢 Business Model & Health
- Business Model: Rail systems and engineering solutions, serving infrastructure and transport sectors
- Competitive Advantage: Strong domestic presence, growing demand from railway modernization
- Overall Health: Financially sound with growth visibility, though short-term volatility exists
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 620–650 ₹ levels (close to support)
- Long-Term Holding: Suitable for growth investors; dividend yield (0.15%) is minimal but adds stability
✅ Positive
- Quarterly PAT improved (62.3 Cr vs 51.8 Cr)
- EPS of 16.6 ₹ reflects profitability
- FII holdings increased (+1.10%), showing foreign investor confidence
⚠️ Limitation
- Dividend yield is very low (0.15%)
- Stock trading below DMA 50 and DMA 200, showing bearish trend
- Quarterly profit variation (-9.69%) highlights volatility
📉 Company Negative News
- DII holdings decreased (-0.17%), showing reduced domestic institutional support
- Technical indicators (RSI 35.6, MACD -35.3) suggest weak momentum
📈 Company Positive News
- FII holdings increased (+1.10%), showing foreign investor confidence
- Improved quarterly PAT compared to previous quarter
🏭 Industry
- Capital goods industry P/E: 47.9, higher than TITAGARH’s valuation
- Sector demand driven by infrastructure expansion and railway modernization
🔎 Conclusion
- TITAGARH is financially stable with moderate profitability and manageable debt
- Valuation is fair compared to industry peers, with PEG suggesting growth potential
- Entry near 620–650 ₹ offers value; suitable for long-term investors focused on infrastructure growth