Titagarh Rail Tops The Sector With Multiple Order Wins — Multibagger Stock
The sector underwent a big shift due to the way the Indian Railways is spending on building capacity, MD Umesh Chowdhary says.
Shares of Titagarh Rail Systems Ltd. surged over four times this year amid consistent order wins and rising spends by the Indian Railways.
Titagarh's stock has gained 363% on a year-to-date basis and is the top gainer in the railway space. The market cap of the company rose by 422.5% during the year to Rs 13,957.5 crore.
The scrip soared over 42% in June, and over 29% and 17% in July and December, respectively.
"The investor interest in the company and the sector has, to a great extent, to do with the Indian growth story," Managing Director Umesh Chowdhary told NDTV Profit on The Multibagger Show.
Chowdhary said the entire paradigm of the manufacturing sector underwent a big shift due to the way the railways is spending on building capacity along with the policies like 'Make in India'.
Companies like Titagarh and others in the railways sector are well-positioned to be part of this entire ecosystem of 'Make in India' and the infrastructure growth, according to Chowdhary.
The company is on track to achieve its manufacturing capability of 1,000 wagons per month, he said. "Before the end of the financial year, we should be able to manufacture 1,000 wagons per month, and in FY25, our near target will be to manufacture about 2,000 wagons."
With the current plans that the railways have announced, 2,000 wagons per month will be the right capacity to operate at for Titagarh, Chowdhary said.
Over the next two to three years, the company will develop the capacity to manufacture up to 72 coaches per month, Chowdhary said.
Operational Highlights
The order book of Titagharh stood at Rs 28,212 crore, as of September.
Titagharh has a market share of 28% in the current financial year, followed by Jupiter Wagons Ltd. and Texmaco Rail and Engineering Ltd., with 14% and 13%, respectively.
It finalised significant wagon orders from private customers in the past few months for around Rs 1,200 crore.
Wagon order book from private players is 26% of the overall full tariff-rate service order book.
Achieved highest-ever dispatch of 759 wagons in September.
Launched first diving support crafts for the Navy.
