⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TITAGARH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | TITAGARH | Market Cap | 10,576 Cr. | Current Price | 785 ₹ | High / Low | 974 ₹ |
| Stock P/E | 43.4 | Book Value | 193 ₹ | Dividend Yield | 0.13 % | ROCE | 17.5 % |
| ROE | 12.8 % | Face Value | 2.00 ₹ | DMA 50 | 824 ₹ | DMA 200 | 875 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.17 % | PAT Qtr | 51.8 Cr. | PAT Prev Qtr | 44.9 Cr. |
| RSI | 43.5 | MACD | -9.60 | Volume | 25,46,779 | Avg Vol 1Wk | 12,92,374 |
| Low price | 655 ₹ | High price | 974 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.25 |
| 52w Index | 40.9 % | Qtr Profit Var | -42.5 % | EPS | 17.6 ₹ | Industry PE | 50.0 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 44.9 Cr. to 51.8 Cr., showing growth momentum.
- Profit Margins: EPS at 17.6 ₹ indicates healthy profitability.
- Debt Ratios: Debt-to-equity at 0.25, moderate leverage manageable for expansion.
- Cash Flows: Likely positive given consistent profitability and moderate debt.
- Return Metrics: ROCE at 17.5% and ROE at 12.8% reflect efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 43.4, slightly below industry average (50.0), suggesting fair valuation.
- P/B Ratio: ~4.07 (Current Price / Book Value), moderately high but acceptable given growth.
- PEG Ratio: 0.59, indicates valuation is attractive relative to growth prospects.
- Intrinsic Value: Current price (785 ₹) trades below DMA 50 (824 ₹) and DMA 200 (875 ₹), offering potential value entry.
🏢 Business Model & Competitive Advantage
- TITAGARH operates in rail systems and heavy engineering, benefiting from infrastructure demand.
- Competitive advantage lies in strong domestic presence and government-backed projects.
- Moderate debt and consistent profitability provide resilience in cyclical markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 750–780 ₹, close to current levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Strong fundamentals support holding, though valuation premium should be monitored.
Positive
- Quarterly PAT improved, showing operational growth.
- ROCE (17.5%) and ROE (12.8%) highlight efficient capital use.
- FII holdings increased (+1.10%), reflecting foreign investor confidence.
Limitation
- P/E ratio relatively high, limiting upside potential.
- Dividend yield at 0.13% offers negligible shareholder return.
- Technical indicators weak (MACD negative, RSI at 43.5).
Company Negative News
- DII holdings decreased (-0.17%), showing reduced domestic institutional support.
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
Company Positive News
- Quarterly PAT improved from 44.9 Cr. to 51.8 Cr.
- Strong trading volumes indicate continued investor interest.
Industry
- Industry P/E at 50.0, slightly higher than TITAGARH’s valuation, suggesting sector trades at premium multiples.
- Rail and infrastructure sector benefits from government spending and modernization projects.
Conclusion
- TITAGARH shows strong fundamentals with profitability growth, moderate debt, and efficient capital use.
- Valuation is fair compared to industry, with entry opportunity near current levels.
- Long-term investors can hold for infrastructure-driven growth, while monitoring technical trends and institutional participation.
I can also prepare a sector outlook HTML summary to show how TITAGARH aligns with India’s broader rail and infrastructure growth story. Would you like me to add that?