Shares of Titagarh Rail Systems surged close to 10% on Wednesday to hit another 52-week high of ₹593.55.
What Happened: Shares of the company are upbeat today, as research firm HSBC initiated coverage on the stock with a ‘buy’ rating. The firm has a price target of ₹730 on the stock, indicating an upside of over 35% from the stock’s last closing price of ₹540.55.
The firm said that India’s plan to expand its rail networks provides a nice opportunity for Titagarh. Analysts opined that growth prospects from the metro rail segment are also good given the several metro projects underway.
See Also: Why This Adani Stock Is Soaring Today
The firm added that the railway company can deliver a compound annual growth rate of 30% over FY23-26. Analysts also said that even after the recent rally in the stock, the current valuation still does not price in the strong growth outlook.
The Safir Anand and Madhusudan Kela-backed railway stock has been on a dream run for the past few months. The stock has gone up over 150% on a year-to-date basis.
Price Action: Titagarh’s share price was up 5.24% to trade at ₹568.85 in the early hours of trading on Wednesday.
Read Next: Ashish Kacholia Raises Stake In This Multibagger Small Cap Stock
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.