If you’re looking to invest in the railway sector, there’s one stock that’s been grabbing serious attention. Titagarh Rail Systems, a lesser-known player not even trading at ₹1,000, has delivered a jaw-dropping 2711% return over the past five years, according to BSE data. Despite a recent dip, experts believe there’s still room for more upside.
Why the Bullish View?
Ashika has maintained its “Buy” rating on the stock and recently increased its target price from ₹925 to ₹1,060, suggesting an upside of nearly 19% from current levels. Based on FY26 projected earnings, the stock is valued at about 43 times forward earnings.
What’s Driving the Forecast?
In its recent analysis, Ashika pointed out that Titagarh’s Freight Rail Systems division brought in ₹915.3 crore in Q4, which was 3.5% higher than the previous quarter but 10% lower year-on-year. The decline was mainly due to delays in wheelset supplies, affecting execution.
Despite this, the company’s segmental EBT (Earnings Before Tax) rose 5.7% quarter-on-quarter to ₹107 crore. However, it was down 15.9% compared to the same quarter last year. Operating margins also dipped slightly to 11.8%, indicating some pressure on profitability.
On the passenger segment side, there was a dramatic spike. Revenue from Passenger Rail Systems rose 82.6% quarter-on-quarter and an impressive 154% year-on-year, hitting ₹90.3 crore. Still, the figure fell short of expectations, primarily due to delays in metro project deliveries.
Performance Snapshot
Despite recent corrections, Titagarh’s stock has outperformed the broader market in the short term. In the last one month, it gained 21.27%, far ahead of the Sensex’s modest 0.29% increase. Over the last three months, it has climbed 33.13%.
Zooming out, the returns are even more stunning:
- 136.58% in 2 years
- 815.33% in 3 years
- A staggering 2711.89% in 5 years
