Morgan Stanley Buys Stake Worth Rs 85.5 Crore In Titagarh Rail Systems Via Bulk Deal

Morgan Stanley Asia Singapore PTE gained a stake worth Rs 85.5 crore in Titagarh Rail Systems Ltd. through a bulk deal on the National Stock Exchange on Wednesday.

Morgan Stanley Asia Singapore bought 7.63 lakh shares or a 0.56% stake in Titagarh Rail at a price of Rs 1,120 apiece, according to the data available on the NSE.

Smallcap World Fund Inc. sold 7.9 lakh shares or a 0.58% stake worth Rs 88.6 crore. The public shareholder had a 2.74% stake in the company, as per the shareholding pattern of the company till the quarter ended June on the BSE.

The rolling stock manufacturer is expected to announce its financial results for the July–September quarter on Friday. Initially a rolling stock foundry unit, the company's headquarters is situated in Kolkata. It specialises in crafting cutting-edge transportation solutions, which include semi high-speed trains, urban metros and passenger coaches.

The biggest customer Titagarh Rail boasts is the Indian Railways, whose contribution constitutes the bulk of the company's revenue at 45%. Its second biggest customer is Rungta Sons Pvt., which accounts for 17% of its revenue, according to Bloomberg data.

The share price of Titagarh Rail closed 1.19% lower at Rs 1,133 apiece on the NSE, compared to a 0.34% decline in the benchmark Nifty 50.

It has risen 8.75% on a year-to-date basis and 45.71% in the last 12 months. The total traded volume in the day stood at 2.4 times its 30-day average. The relative strength index was at 37.20.

Eight out of the nine analysts tracking the company have a 'buy' rating on the stock, while one recommends a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 56.1%.