Titagarh Rail Systems (formerly Titagarh Wagons) saw its shares surge up over 4% on Friday morning even as several other railways stocks such as RVNL, IRFC, and IRCON started the day in the red.
What Happened: The surge today comes as HSBC maintained its ‘buy’ rating on the stock raising the target price to ₹900 from ₹750. The revised target indicates a close to 20% upside from the stock’s last closing price of ₹750.65.
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The research firm said that resilient core volume trends are driving a significant surge in demand for railway wagons from the private sector. The firm added that orders for wagons from private entities offer enhanced profitability and favourable working capital terms.
The analysts said that the company has a strong backlog of orders that give good visibility to the growth outlook. The research firm expects the company’s profits to jump 2.8x over FY23-FY26.
Price Action: Titagarh’s share price was up 3.24% to trade at ₹775 shortly after market open on Friday.
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