Titagarh Wagons Limited, now known as Titagarh Rail Systems Limited, is a prominent player in the Indian private sector for manufacturing railway wagons and other industrial products. Since its incorporation in 1997, the company has grown significantly, diversifying its product portfolio and expanding its market presence. This blog post delves into the company’s journey, its initial public offering (IPO), current market performance, and technical and fundamental analysis.
Company Overview: Titagarh Rail Systems Limited has established itself as a key manufacturer in the railway and industrial sectors. The company produces a wide range of products including railway wagons, Bailey bridges, heavy earth moving and mining equipment, and complex steel and SG iron castings. Over the years, Titagarh has diversified its offerings to include high-speed electric loco, electric multiple unit train sets, urban metro rail systems, and various defense products.
IPO Journey: Titagarh Wagons Limited entered the capital markets with an IPO in March 2008. The company offered 4,063,158 equity shares, with a price band set between Rs. 540 and Rs. 610 per share. The IPO was a 100% book-built issue and was open for subscription from March 24 to March 27, 2008. The shares were subsequently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Current Share Price: As of June 28, 2024, the share price of Titagarh Rail Systems Limited stands at Rs. 1,485. The company has shown impressive growth over the years, reflected in its current market valuation (Investing) (Samco) (NSE India).
Investment Returns: To illustrate the growth, let’s consider an investment scenario. If an investor had invested Rs. 1 lakh in Titagarh Rail Systems Limited three years ago (June 2021), the returns would be substantial. The share price in June 2021 was approximately Rs. 465.
Calculation:
- Investment Amount: Rs. 1,00,000
- Share Price in June 2021: Rs. 465
- Number of Shares Purchased: 1,00,000 / 465 ≈ 215 shares
- Current Share Price (June 2024): Rs. 1,485
- Current Value of Investment: 215 shares * Rs. 1,485 = Rs. 3,19,275
- Profit: Rs. 3,19,275 – Rs. 1,00,000 = Rs. 2,19,275
An initial investment of Rs. 1 lakh would now be worth Rs. 3,19,275, showcasing a significant profit of Rs. 2,19,275 over three years.
Technical Analysis:
| Parameter | Value |
|---|---|
| Current Price | Rs. 1,485 |
| 52-Week Range | Rs. 457.60 – Rs. 1,594.25 |
| Day’s Range | Rs. 1,425.60 – Rs. 1,521.00 |
| Market Cap | Rs. 200.26 Billion |
| P/E Ratio | 66.13 |
| EPS | Rs. 22.46 |
| Dividend Yield | 0.03% |
| Beta | 1.22 |
Fundamental Analysis:
| Parameter | Value |
|---|---|
| Revenue | Rs. 38.53 Billion |
| Net Income | Rs. 8.99 Billion |
| Total Debt | Rs. 7.15 Billion |
| Cash on Hand | Rs. 5.68 Billion |
| Shares Outstanding | 134,673,768 |
| Book Value/Share | Rs. 120.15 |
Conclusion: Titagarh Rail Systems Limited has demonstrated remarkable growth since its IPO in 2008. The company’s strategic expansions and diversified product offerings have contributed to its strong market presence and financial performance. The significant returns on investment over the past three years highlight the company’s potential as a lucrative investment opportunity.
Investors should consider both the technical and fundamental aspects of the company before making investment decisions. With ongoing developments and strategic partnerships, Titagarh Rail Systems Limited is poised for continued growth in the coming years.