This railway wagon manufacturer delivered over 236% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 3.36 lakh today.  

Titagarh Wagon Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 102.1 on 5 May 2022 to Rs 343.6 on 6 May 2023, an increase of 236% in the one-year holding period.  

Recent performance highlights  

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 156.63% YoY to Rs 39.92 crore. The company’s net sales increased by 101.98% YoY to Rs 766.40 crore from Rs 379.45 crore. 

The company is currently trading at a PE of 59.2X against the industry PE of 26X. In FY23, the company delivered an ROE and ROCE of -0.05% and 7.67%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 4,125 crore.

Company Profile 

Titagarh Wagons, incorporated in 1997, is primarily engaged in the manufacturing of railway wagons. It is one of the leading private-sector wagon manufacturers in India. In its initial year, the company started the development of the prototype of BOXN Wagon. Immediately the next year the company was awarded an order from Indian Railway to manufacture BOXN and BCNA-type wagons. In 2000 there was the addition of a new type of wagon i.e., BOBYN.

Growth Drivers 

The company is engaged in the manufacturing of railway wagons, bailey bridges, heavy earth moving and mining equipment, and steel and SG iron castings of moderate to complex configuration. The company also manufactures products for the Indian defence establishment, such as special wagons, shelters, and other engineering equipment. 

Share price movements 

Today, the share of Titagarh Wagon Ltd opened at Rs 344 and has touched a high and low of Rs 346.95 and Rs 343.40, respectively. So far 2,110 shares have been traded on the bourses. 

At the time of writing, the shares of Titagarh Wagon Ltd were trading at Rs 345, an increase of 1% from the previous day’s closing price of Rs 343.60 on BSE. The stock has a 52-week high and low of Rs 358 and Rs 93.35 respectively on BSE.