TITAGARH - Investment Analysis

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

Investment Rating: 3.2

📊 Fundamental Analysis of TITAGARH (Titagarh Rail Systems Ltd.)

✅ Strengths

Healthy Return Metrics

ROCE: 16.6% — efficient capital deployment

ROE: 11.7% — decent shareholder return

Low Debt: Debt-to-equity of 0.25 — financially sound

PEG Ratio: 0.05 — extremely low, indicating undervaluation relative to expected growth

EPS: ₹20.5 — supports current valuation

Strong Volume: Indicates active investor interest

⚠️ Concerns

High P/E (42.6) vs Industry PE of 41.2 — slightly overvalued

Low Dividend Yield: 0.09% — not attractive for income investors

Technical Weakness

RSI: 38.6 — weak momentum

MACD: -9.44 — bearish crossover

Price below both DMA 50 and DMA 200 — confirms downtrend

Institutional Exit

FII: -2.14%

DII: -1.73% — declining confidence

Qtr Profit Var: -20.2% — earnings volatility

Price Correction: Down ~50% from 52-week high — sentiment reversal

📉 Valuation & Ideal Entry Zone

Given current price of ₹870 and technical weakness

Ideal Entry Zone: ₹750–₹800

Near support levels and below psychological ₹800

Offers better risk-reward for long-term investors

🧭 Long-Term Investment Outlook

TITAGARH has strong fundamentals but is currently facing sentiment and technical pressure. The low PEG ratio suggests potential for long-term growth, especially if earnings stabilize.

Hold if already invested, but monitor earnings consistency and institutional activity

Holding Period: 2–4 years, especially if rail infrastructure spending increases

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹1,000–₹1,100

Near DMA resistance and psychological level

Full Exit: If ROE/ROCE decline or earnings remain volatile for 2+ quarters

Reinvest only if PEG remains low and EPS growth resumes

Would you like a sector outlook on rail infrastructure or a comparison with RVNL or IRCON for better positioning?

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