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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Titagarh Rail Systems Ltd

About the Company - Titagarh Rail Systems Ltd

Titagarh Wagons Ltd. is a Public Limited Listed company incorporated on 03/07/1997 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27320WB1997PLC084819 and registration number is 084819. Currently Company is involved in the business activities of Building of ships and floating structures. Company’s Total Operating Revenue is Rs. 1474.79 Cr. and Equity Capital is Rs. 23.91 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyTitagarh Towers, 756, Anandapur, Kolkata West Bengal 700107investors@titagarh.in
http://www.titagarh.in
Management
NamePosition Held
Mr. J P ChowdharyExecutive Chairman
Mr. Umesh ChowdharyVice Chairman & Mng.Director
Mr. Prithish ChowdharyDirector - Marketing & Business Development
Mrs. Rashmi ChowdharyNon Executive Director
Mr. Anil Kumar AgarwalDirector - Finance & CFO
Mr. Atul JoshiIndependent Director
Mr. Krishan Kumar JalanIndependent Director
Mr. Manoj MohankaIndependent Director
Ms. Nayantara PalchoudhuriIndependent Director
Mr. Sunirmal TalukdarIndependent Director
Mr. Sushil Kumar RoongtaIndependent Director
Mr. Saket KandoiDirector

Titagarh Rail Systems Ltd. Share Price Update

Share PriceValue
Today₹1,000.20
Previous Day₹1,014.25

Basic Stock Data of Titagarh Rail Systems Ltd

Market Cap 13,360 Cr.
Current Price 992
High / Low1,249/205
Stock P/E52.3
Book Value 103
Dividend Yield0.05 %
ROCE17.6 %
ROE13.9 %
Face Value 2.00

Data Source: screener.in

Competitors of Titagarh Rail Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Techno Electric & Engineering Company Ltd 8,202 Cr. 762860/31241.3 1850.79 %8.18 %9.91 % 2.00
Windsor Machines Ltd 576 Cr. 88.8105/34.663.7 42.11.13 %6.77 %1.65 % 2.00
Suzlon Energy Ltd 60,913 Cr. 45.250.7/6.95123 2.530.00 %20.8 %% 2.00
Bright Solar Ltd 27.2 Cr. 10.912.4/4.65 12.90.00 %0.33 %0.16 % 10.0
The Anup Engineering Ltd 2,784 Cr. 2,8083,176/95037.8 4680.53 %16.8 %12.4 % 10.0
Industry Average134.64 Cr181.7853.16142.110.49%10.58%4.82%5.2

Titagarh Rail Systems Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales423449430507342379422432607766974911935
Expenses393422410463304336376392554701882805821
Operating Profit3028204438434640536592106115
OPM %7%6%5%9%11%11%11%9%9%9%9%12%12%
Other Income36149-8-12-44-132911747
Interest20192220131716162023221920
Depreciation4888456555677
Profit before tax86425139-1965748708495
Tax %64%113%81%31%57%83%-33%101%21%32%31%27%25%
Net Profit3-111761-25-04533486271
EPS in Rs0.41-0.020.061.460.480.12-2.090.104.032.724.035.175.55

Titagarh Rail Systems Ltd Quarterly Chart

Titagarh Rail Systems Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8917826247619591,7141,2681,5591,7661,5211,4682,7803,587
Expenses7547366197219291,6051,3651,5501,7401,4401,3032,5293,209
Operating Profit1374654030108-9792781165251378
OPM %15%6%1%5%3%6%-8%1%2%5%11%9%11%
Other Income142720-0202425253425-613429
Interest16221418173144658881578185
Depreciation11151826465251242930182225
Profit before tax12436-7-4-1350-167-56-57-629181297
Tax %32%38%-58%-177%-52%45%12%59%36%-237%102%31%
Net Profit8422-10-10-2027-147-23-36-19-1126213
EPS in Rs8.292.35-0.89-0.33-1.692.33-12.43-2.47-2.96-1.26-0.0310.8917.47
Dividend Payout %19%34%-90%-48%-47%34%-2%-12%0%0%0%5%

Titagarh Rail Systems Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-73.81%-145.45%0.00%-100.00%235.00%-644.44%84.35%-56.52%47.22%94.74%12700.00%
Change in YoY Net Profit Growth (%)0.00%-71.65%145.45%-100.00%335.00%-879.44%728.80%-140.88%103.74%47.51%12605.26%

Titagarh Rail Systems Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:17%
3 Years:16%
TTM:69%
Compounded Profit Growth
10 Years:19%
5 Years:24%
3 Years:76%
TTM:135%
Stock Price CAGR
10 Years:48%
5 Years:73%
3 Years:173%
1 Year:377%
Return on Equity
10 Years:-1%
5 Years:1%
3 Years:4%
Last Year:14%

Titagarh Rail Systems Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital20202020232323232324242425
Reserves6446566426699309448327937438178189401,359
Borrowings148128128125233372624896730847920353362
Other Liabilities2352782892461,4931,3561,210975775775903931981
Total Liabilities1,0471,0821,0801,0602,6782,6952,6892,6872,2722,4622,6642,2482,728
Fixed Assets254272323416977933958935872871966732720
CWIP1626112713152736041611258
Investments3333331218283872931303232
Other Assets7437517126161,6661,6651,6211,6301,3711,5181,6071,4721,918
Total Assets1,0471,0821,0801,0602,6782,6952,6892,6872,2722,4622,6642,2482,728

Titagarh Rail Systems Ltd Reserves and Borrowings Chart

Titagarh Rail Systems Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 109-4068102-154-177-121-124154685541
Cash from Investing Activity -7041-34-25-5044-45-494-60-73-61
Cash from Financing Activity 18-36-17-69216111191214-22743-5367
Net Cash Flow57-3418811-222540-7051-7146

Titagarh Rail Systems Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4086815487507981521365837
Inventory Days18024931317647118221320311914217678
Days Payable6985847524815014820911114615355
Cash Conversion Cycle1512503101553108214575601318160
Working Capital Days12616416280777711513113216413947
ROCE %19%7%2%5%2%6%-8%1%2%5%9%18%

Titagarh Rail Systems Ltd Financial Efficiency Indicators Chart

Titagarh Rail Systems Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters44.27%45.23%45.77%47.00%47.05%47.26%47.26%47.82%47.82%47.82%44.97%42.47%
FIIs3.43%4.34%5.37%4.94%4.85%4.63%4.82%5.27%6.07%7.05%16.85%20.04%
DIIs9.14%9.14%9.34%8.53%7.73%7.37%7.00%6.78%6.61%9.68%10.45%12.27%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public43.15%41.28%39.51%39.51%40.36%40.73%40.91%40.10%39.48%35.43%27.73%25.22%
No. of Shareholders1,19,1051,14,2121,14,9451,11,7391,09,7731,08,8391,04,8311,04,9001,07,8451,41,5611,91,9102,24,205

Titagarh Rail Systems Ltd Shareholding Pattern Chart

No. of Titagarh Rail Systems Ltd Shareholders

Titagarh Rail Systems Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Balanced Advantage Fund - Regular Plan61515560.88641.91
Canara Robeco Small Cap Fund18325002.08191.22
HDFC Large and Mid Cap Fund - Regular Plan8000000.5683.48
Canara Robeco ELSS Tax Saver Fund6319300.9465.94
Mahindra Manulife Multi Cap Fund6308232.4765.83
Bandhan Flexi Cap Fund5968240.9362.28
HSBC Small Cap Fund - Regular Plan5344260.4255.77
Franklin India Smaller Companies Fund5138080.4753.62
HSBC Aggressive Hybrid Fund5105661.0353.28
UTI Small Cap Fund3530681.0236.84

Titagarh Rail Systems Ltd ROCE Trend

Titagarh Rail Systems Ltd EPS Trend

Titagarh Rail Systems Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)10.89-0.03-1.28-2.96-2.47
Diluted EPS (Rs.)10.89-0.03-1.28-2.96-2.47
Cash EPS (Rs.)13.462.730.92-0.590.12
Book Value[Excl.RevalReserv]/Share (Rs.)80.5870.4470.4173.1376.92
Book Value[Incl.RevalReserv]/Share (Rs.)80.5870.4470.4173.1376.92
Revenue From Operations / Share (Rs.)232.46161.48127.37152.79134.97
PBDIT / Share (Rs.)25.6014.118.8413.4010.04
PBIT / Share (Rs.)23.7211.336.3310.887.96
PBT / Share (Rs.)16.962.42-0.463.251.64
Net Profit / Share (Rs.)11.58-0.05-1.57-3.12-1.95
NP After MI And SOA / Share (Rs.)10.89-0.02-1.26-2.96-2.47
PBDIT Margin (%)11.018.746.938.777.43
PBIT Margin (%)10.207.014.977.125.89
PBT Margin (%)7.291.49-0.362.121.21
Net Profit Margin (%)4.98-0.03-1.23-2.04-1.44
NP After MI And SOA Margin (%)4.68-0.01-0.98-1.93-1.82
Return on Networth / Equity (%)13.51-0.03-1.78-4.45-3.49
Return on Capital Employeed (%)24.499.594.818.136.07
Return On Assets (%)5.79-0.01-0.60-1.50-1.05
Long Term Debt / Equity (X)0.050.580.630.720.70
Total Debt / Equity (X)0.251.021.000.951.07
Asset Turnover Ratio (%)1.130.690.550.710.48
Current Ratio (X)1.231.191.551.721.32
Quick Ratio (X)0.800.781.131.200.88
Inventory Turnover Ratio (X)4.493.032.502.952.10
Dividend Payout Ratio (NP) (%)0.000.000.000.00-12.15
Dividend Payout Ratio (CP) (%)0.000.000.000.00-76.47
Earning Retention Ratio (%)0.000.000.000.00112.15
Cash Earning Retention Ratio (%)0.000.000.000.00176.47
Interest Coverage Ratio (X)3.791.811.301.761.78
Interest Coverage Ratio (Post Tax) (X)2.821.130.761.661.92
Enterprise Value (Cr.)3285.092031.071252.371039.981631.84
EV / Net Operating Revenue (X)1.181.050.820.581.05
EV / EBITDA (X)10.7312.0411.876.7114.07
MarketCap / Net Operating Revenue (X)1.130.620.340.160.51
Retention Ratios (%)0.000.000.000.00112.15
Price / BV (X)3.251.440.630.370.99
Price / Net Operating Revenue (X)1.130.620.340.160.51
EarningsYield0.040.00-0.02-0.11-0.03

Titagarh Rail Systems Ltd Profitability Ratios (%)

Titagarh Rail Systems Ltd Liquidity Ratios

Titagarh Rail Systems Ltd Liquidity Ratios (%)

Titagarh Rail Systems Ltd Interest Coverage Ratios (X)

Titagarh Rail Systems Ltd Valuation Ratios

Fair Value / Intrinsic Value of Titagarh Rail Systems Ltd

Fair Value: ₹749.15

The stock is overvalued by 24.48% compared to the current price ₹992

*Investments are subject to market risks

Strength and Weakness of Titagarh Rail Systems Ltd

StrengthWeakness
  1. The company has higher reserves (829.77 cr) compared to borrowings (451.23 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (309.85 cr) and profit (35.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 12.04 and average Dividend Yield of 7.04%.
  2. The stock has a low average ROCE of 5.67%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 117.83, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 150.83, which may not be favorable.

Should I Buy Titagarh Rail Systems Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Titagarh Rail Systems Ltd:
    1. Net Profit Margin: 4.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.49% (Industry Average ROCE: 18.69%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 2.82
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.80
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 50.5 (Industry average Stock P/E: 65.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Titagarh Rail Systems Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE