This small-cap railway stock engaged in designing, manufacturing, and supplying railway coaches, wagons, metro trains, and train parts, supporting India’s growing rail infrastructure, is in focus following its partnership with BHEL to start a new production line for Vande Bharat Sleeper Trains in Kolkata with a project value of Rs. 24,000 crore.
Stock Price Movement
With a market capitalization of Rs. 10,544.28 crores, the share of Titagarh Rail Systems Limited has reached an intraday high of Rs. 828.75 per equity share, rising nearly 2.05 percent from its previous day’s close price of Rs. 812.10. Since then, the stock has retreated and is currently trading at Rs. 782.95 per equity share.
What Happened
Titagarh Rail Systems Limited (TRSL) and Bharat Heavy Electricals Limited (BHEL) have together started a new production line for Vande Bharat Sleeper Trains in Uttarpara, Kolkata. This new line will build 80 advanced sleeper train sets under a contract given by Indian Railways.
The project, worth Rs. 24,000 crore, also includes maintenance for 35 years. It supports the Indian government’s Make in India and Aatmanirbhar Bharat plans. The Vande Bharat Sleeper will have modern designs, smart features, and better comfort for passengers, making travel safer and more enjoyable.
Order Book
Titagarh Rail Systems has demonstrated a robust order book position, receiving approximately Rs. 1,106 crore worth of new orders in 9M FY25 across its business segments. This includes Rs. 850 crore for Freight Rolling Stocks and Rs. 256 crore for propulsion systems.
As of December 24, the order book comprises orders for almost 13,689 wagons and 1,589 Metro and Vande Bharat coaches. The company order book stands at Rs. 12,007 crore for the company and Rs. 13,326 crore from JV shares, reflecting strong growth.
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Capacity Expansion
The company is expanding its rolling stock capacity from the current 300 units per annum. The proposed capacity will rise to 850 units per annum by FY27, with a further increase to 1,200 units per annum by FY28, reflecting its commitment to meeting growing demand.
Business Operations
Titagarh Rail Systems stands as the only Indian company manufacturing both wagons and coaches, holding a 25-30 percent market share in wagon manufacturing. With 4 manufacturing facilities, it boasts a capacity of 12,000 wagons and 300 coaches per year, showcasing its significant role in the railway industry.
Recent quarter results
Titagarh Rail Systems Limited’s revenue has decreased from Rs. 955 crore in Q3 FY24 to Rs. 902 crore in Q3 FY25, which is a drop of 5.55 percent. The net profit has also decreased by 16 percent, from Rs. 75 crore in Q3 FY24 to Rs. 63 crore in Q3 FY25.
Written By – Nikhil Naik
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