Titagarh Rail Systems Ltd has retained investor attention after brokerage firm Nuvama reaffirmed its Buy call and raised the target price to ₹1,089.
The target implies an upside of nearly 30% from the previous close of ₹834.65.
During the session, the stock rose 1.4% to ₹849.05. The company currently has a market capitalisation of ₹11,404.17 crore.
Why Nuvama remains positive
Nuvama said several factors support its bullish view.
Strong order book
Titagarh ended FY26 with an order book of about ₹14,200 crore. The book-to-bill ratio stood at 4.5 times.
The large backlog gives the company revenue visibility for the next few years. It also reduces dependence on fresh orders at a time when wagon demand remains weak.
Passenger rail business gaining pace
The passenger rail segment posted strong growth in the March quarter.
- Revenue jumped 96% year-on-year to around ₹170 crore.
- Coach deliveries increased from six units to 24 units.
Nuvama said better execution and improving margins in this business could offset weakness in freight wagons.
Vande Bharat project
Production of Vande Bharat trains has already begun.
The company expects to deliver the prototype during FY27.
According to the brokerage, successful execution could strengthen Titagarh’s position in the high-speed passenger rail segment. Future manufacturing orders and maintenance contracts may provide an additional source of revenue.
Metro rail opportunities
Several metro projects are moving ahead.
These include:
- Gujarat Metro
- Bengaluru Metro
- Mumbai Metro
- Pune Metro
Deliveries for Mumbai Metro coaches are expected to begin in FY27.
Nuvama believes these projects can support growth over several years as urban transport networks expand.
Less dependence on wagons
Titagarh’s order pipeline is no longer concentrated in freight wagons.
Its businesses now span:
- Passenger rail systems
- Metro coaches
- Shipbuilding
- Defence-related projects
This wider mix gives the company multiple growth avenues and lowers dependence on any single segment.
Wagon slowdown seen as temporary
Wagon production declined to around 1,700 units from 2,455 units earlier.
Nuvama said the market is already aware of the near-term weakness.
Attention is shifting to future triggers. These include passenger coach execution, metro projects and Vande Bharat orders. The brokerage expects earnings growth to recover as these businesses scale up.
Financial performance
Revenue fell 12.94% to ₹875 crore in March 2026 from ₹1,006 crore a year earlier.
The company, however, returned to profitability.
It posted a net profit of ₹54 crore in March 2026. A year earlier, it had reported a net loss of ₹124 crore.
Other key metrics were:
- ROCE: 10.6%
- ROE: 6.47%
- Debt-to-equity ratio: 0.25
Order book composition
The standalone order book of about ₹14,240 crore consists of:
- Passenger Rail Systems: ₹10,625 crore (77.33%)
- Freight Rail Systems: ₹3,115 crore (22.67%)
- Shipbuilding and Maritime Systems: about ₹500 crore
Titagarh also has exposure through two strategic joint ventures.
- Share of order book from the Forged Wheel Manufacturing JV with RKFL: about ₹6,300 crore
- Share from the Vande Bharat AMC JV with BHEL: around ₹7,000 crore
Including these ventures, total order visibility stands at ₹27,540 crore.
Founded in 1997 and headquartered in Kolkata, Titagarh Rail Systems Ltd manufactures railway and metro coaches, wagons, electric multiple units and related components. The company serves both domestic and overseas markets.
TL;DR:
Nuvama has maintained a Buy rating on Titagarh Rail Systems and set a target price of ₹1,089. The brokerage expects growth from passenger rail, metro projects and the Vande Bharat programme, while the company’s order visibility stands at ₹27,540 crore including joint ventures.
AI summary:
- Nuvama retained a Buy rating with a target price of ₹1,089.
- The target implies nearly 30% upside.
- FY26 order book stood at around ₹14,200 crore.
- Passenger rail revenue rose 96% in the March quarter.
- Total order visibility, including JVs, reached ₹27,540 crore.
