TITAGARH - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Here’s a detailed analysis of Titagarh Rail Systems Ltd (TITAGARH), a key player in India’s railway manufacturing sector

📊 Core Financials

Profitability & Growth

PAT: ₹64.8 Cr (slightly up from ₹62.4 Cr) — stable but not accelerating

EPS: ₹20.5 — decent for its market cap

ROE: 11.7%, ROCE: 16.6% — solid return metrics, indicating efficient capital use

Qtr Profit Variation: -20.2% — signals short-term earnings pressure

Balance Sheet & Leverage

Debt-to-equity: 0.25 — conservative leverage, manageable

Dividend Yield: 0.09% — minimal, not attractive for income investors

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 42.6 Slightly above industry average (41.2) — fair valuation

P/B Ratio ~4.7 Premium pricing relative to book value

PEG Ratio 0.05 Very low — suggests undervaluation if growth resumes

Intrinsic Value Near CMP Reasonably priced given fundamentals

🧠 Business Model & Competitive Edge

Core Business: Manufacturing of freight wagons, passenger coaches, metro train sets, and shipbuilding

Segments: Freight Rolling Stock, Passenger Rolling Stock, Shipbuilding, and Defense Equipment

Strengths

Strong order book from Indian Railways and metro projects

Diversified product portfolio across transport and defense

Challenges

Recent decline in institutional holdings (FII/DII) — sentiment cooling

Profit contraction and technical weakness

📉 Technical & Sentiment Indicators

RSI: 38.6 — approaching oversold zone

MACD: -9.44 — bearish crossover

Volume above average — heightened activity, possibly speculative

DMA 50 & 200: CMP below both — short-term weakness

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹800–₹850 — near support and better margin of safety

Long-Term Holding: Promising for investors bullish on railway infrastructure. Monitor earnings recovery and institutional interest.

Would you like a side-by-side with peers like Texmaco or Jupiter Wagons to see how Titagarh stacks up?

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