Bullet train! This smallcap rail stock hits 5% upper circuit for 3rd straight day

Shares of railway wagon manufacturer Titagarh Wagons hit an upper circuit of 5% at Rs 212.55 in Wednesday’s intraday trade on the BSE after the promoter group bought 2.09 lakh of its shares. This is the third straight day when the stock hit a 5% upper circuit.

According to the BSE data, promoter Titagarh Logistics Infrastructures increased its stake in the company from 1.03% to 1.20% with 14,44,011 equity shares.

At 12.47 pm, the scrip was trading 4.6% higher at Rs 211.75 over its last day’s closing price of Rs 202.45 apiece. The stock has risen about 108% in the last six months, and about 122% year-to-date.

As per the Trendlyne data, the target price for the stock is Rs 206, which shows a downside of 3% from the current market price. The recommendation from one analyst for Titagarh Wagons is a strong ‘buy’.

Technically, Titagarh Wagons is trading above 8 out of 8 SMAs (Simple Moving Average).

For the quarter ended September 30, the company has reported a consolidated total income of Rs 623.34 crore — up 15.74% from last quarter's Rs 538.55 crore and 33.37% from the same quarter last year, when the total income was Rs 467.37 crore. The company reported a net profit after tax of Rs 46.65 crore in the latest quarter.

The promoter group holds around 46.26% stake, mutual funds 6.82%, while others hold 45.74% in the company as of September 30, 2022.

Incorporated in 1997, Titagarh Wagons is a smallcap company operating in the engineering sector. It expands its global reach and presence through factories in India and Italy, catering to passenger rolling stock including trains and metros. Its key product range includes electric propulsion equipment such as traction motors and vehicle control systems. Titagarh Wagons also designs and manufactures container flats, grain, cement, clinker, and tank wagons. Its current market cap is Rs 2,522 crore.

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