Railway company Titagarh Rail Systems Ltd has received a maintenance order worth ₹273.24 crore from Indian Railways. Under this order, the company has to do the design, manufacturing, supply, testing and commissioning of 62 Rail Borne Maintenance Vehicles (RBMV), as well as provide training and servicing and breakdown maintenance facilities to the railway employees. RBMV is a special type of self-propelled on-track machine, which is used for inspection, maintenance and repair of railway tracks and other infrastructure.
This order is considered a major step for the company to enter the maintenance and technology-driven rail safety segment, where earlier the company mainly focused on manufacturing rolling stock (wagons, coaches etc.). Titagarh Rail Systems has said that the supply of machines will be started within 15 months of receiving the order and the delivery of all 62 machines and spare parts will be completed within the next 48 months (4 years). These machines will have advanced mechanized system tools, which will promote operational safety and proper functioning of the railway network.
Status of company’s stock in stock market
Shares of Titagarh Rail Systems closed at ₹774.80 on December 17 with a decline of 1.93% on BSE. It has fallen by about 12.41% in the last 6 months, and has registered a decline of about 40.87% in the last one year. The market cap of the company is approximately ₹ 10.43 thousand crore.
According to experts, this new order could be a positive sign for the company, especially when the stock has been under pressure for some time. Because of this order, investors’ eyes are now fixed on the future performance of the stock. However, investing in the stock market always comes with risks, so it is important to take expert advice.
The company has the benefit of getting this order
This large maintenance order expands Titagarh Rail Systems’ business beyond traditional rolling stock manufacturing to maintenance and safety-critical solutions. With this, the company can get a stronger position in the railways through new technologies and services. Investors will now also keep an eye on the future order book and financial performance of the company.
Nuvama gave buy rating
Titagarh Rail Systems’ Q2FY26 has been weak. There was an annual decline of 25% in the company’s revenue and 42% in PAT. The main reason for this was the shortage of wheelset, which affected wagon production. However, the company’s position in terms of orders is strong. The company recently received a big order worth Rs 2,480 crore for Mumbai Metro Line-5.
Last month, Nuvama had maintained Buy rating on Titagarh Rail Systems and fixed the target price of the company at Rs 1,088, which shows an upside of about 40.5% compared to the current market price of Rs 774. However, due to weak wagon tendering, Nuvama has cut its FY26 and FY27 EPS estimates by 20% and 18%. The company’s share price has currently fallen 30% on a YTD basis.
