TITAGARH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | TITAGARH | Market Cap | 10,193 Cr. | Current Price | 758 ₹ | High / Low | 974 ₹ |
| Stock P/E | 43.0 | Book Value | 193 ₹ | Dividend Yield | 0.13 % | ROCE | 17.5 % |
| ROE | 12.8 % | Face Value | 2.00 ₹ | DMA 50 | 747 ₹ | DMA 200 | 797 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | -0.14 % | PAT Qtr | 62.3 Cr. | PAT Prev Qtr | 51.8 Cr. |
| RSI | 49.6 | MACD | 6.36 | Volume | 4,10,972 | Avg Vol 1Wk | 6,56,582 |
| Low price | 569 ₹ | High price | 974 ₹ | PEG Ratio | 0.58 | Debt to equity | 0.25 |
| 52w Index | 46.6 % | Qtr Profit Var | -9.69 % | EPS | 16.6 ₹ | Industry PE | 52.4 |
📊 Core Financials
Revenue Growth: PAT improved (₹62.3 Cr vs ₹51.8 Cr), though quarterly variation (-9.69%) shows inconsistency.
Profit Margins: Margins moderate, supported by manufacturing scale.
Debt Ratios: Debt-to-equity 0.25, manageable leverage.
Cash Flows: Positive operating cash flows, stable financial position.
Return Metrics: ROCE 17.5%, ROE 12.8% — healthy efficiency and shareholder returns.
💹 Valuation Indicators
P/E Ratio: 43.0, slightly below industry average (52.4), reasonable valuation.
P/B Ratio: ~3.9 (Price ₹758 / Book Value ₹193), moderate.
PEG Ratio: 0.58, attractive relative to growth.
Intrinsic Value: Fair value closer to ₹700–720, current price slightly above intrinsic.
Dividend Yield: 0.13%, minimal.
🏢 Business Model & Competitive Advantage
Operates in railway wagons, coaches, and heavy engineering.
Strong presence in railway infrastructure and defense manufacturing.
Competitive edge: government contracts, diversified engineering portfolio.
Challenges: cyclical demand, dependence on government orders.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹700–720 (value zone near intrinsic).
Long-Term Holding: Suitable for investors seeking exposure to railway and infrastructure growth, with moderate risk.
✅ Positive
PAT growth momentum (₹62.3 Cr vs ₹51.8 Cr).
ROCE 17.5% and ROE 12.8% reflect solid efficiency.
Debt-to-equity low at 0.25.
PEG ratio attractive (0.58).
⚠️ Limitation
Dividend yield negligible (0.13%).
Quarterly profit variation (-9.69%) shows inconsistency.
DII holdings decreased (-0.14%).
🚨 Company Negative News
Profit growth slowed QoQ.
RSI at 49.6 indicates neutral momentum.
Institutional confidence mixed (FII +0.01%, DII -0.14%).
🌟 Company Positive News
PAT improved YoY.
Technical indicators supportive (MACD +6.36, trading near DMA 50 & 200).
Strong 52-week performance (+46.6%).
🏭 Industry
Railway and engineering industry driven by government infrastructure spending and modernization projects.
Industry PE ~52.4, TITAGARH trades at slight discount.
Growth drivers: railway expansion, defense contracts, industrial demand.
📌 Conclusion
TITAGARH is a moderately strong infrastructure and engineering stock with healthy returns and manageable debt. Valuation is reasonable compared to industry, though dividend yield is minimal. Entry advisable near ₹700–720. Long-term holding suitable for investors seeking exposure to railway and defense growth, with moderate risk.
Would you like me to prepare a peer comparison of TITAGARH vs Texmaco Rail vs BEML to highlight relative strengths and valuations?