Titagarh Rail Systems shares surged nearly 9% to a 15-week high after Morgan Stanley initiated coverage with an Overweight rating and a target price of ₹1,285, anticipating a 24.27% upside.
Morgan Stanley sees freight as a significant revenue generator for Titagarh, while also acknowledging the potential of the passenger business for growth. The firm anticipates an impressive 28% earnings compound annual growth rate (CAGR) for Titagarh over the period spanning FY 24-27.
Titagarh Rail intends to utilise the QIP proceeds to repay outstanding debt, fund working capital working requirements, and for general corporate purposes
Earlier in June, the firm also bagged Rs 857 crore worth of orders from Gujarat Metro Rail Corporation for designing, manufacturing, supplying, testing, commissioning and training of 72 Standard Gauge Cars for Surat Metro Rail Phase-I Project I.
Titagarh Rail Systems shares rose 5% after the company secured orders worth Rs 857 crore from Gujarat Metro Rail Corporation. The orders are for designing, manufacturing, supplying, and testing 72 Standard Gauge Cars for the Surat Metro Rail Phase-I Project. The stock has delivered substantial returns, surging 125% year-to-date and 403% in the last year. Brokerage firm Antique Stock Broking initiated coverage on the stock with a "buy" rating and a target price of Rs 694, citing attractive risk-reward factors and long-term growth potential. The company plans to increase its wagon manufacturing capacity to 12,000 wagons per year by FY24.