Titagarh Wagons Stock Research

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Titagarh Wagons Detail

Titagarh Wagons is in portfolio of Akash Bhansali. He is one of the top investors in India. The company belongs to Engineering sector.

As per the Company website it is engaged in business of Wagon manufacture for Railways. This is the primary business of the Company. Along with that it has ventured into other areas as well. Below are list of product categories from the Company

  • Railways
    • Freight
      • Manufacturing railway castings – bogies and couplers
    • Components
      • Leading manufacturer of Crossing in India
      •  Cast Bogies as well as Fabricated Bogies
      • Leading manufacturer of Couplers
    • Passenger Division
      • Manufacturing EMU/MEMU trains for the Indian Railways
  • Defense
    • Metal Canopy for missiles to Ministry of Defence
    • Metal Canister for Missiles 
    • Field Shelter and Mobile Shelter
    • Bailey bridge, Missile carrier wagon and Tank Carrier wagon
  • Ship Building
    • With merger of Corporated Shipyard Company ventured into this business
  • Tractors
    • Plan to produce 50,000 tractors over 5 years time frames.
    • Only Tractor plant in Rajasthan
  • Bailey Bridge
    • Ministry of Defence manufacturer of Bailey Type Portable Modular Bridges.
  • Heavy Earth moving and mining equipment
    • Hydraulic Excavatar
    • Crawler mounted crane
    • Heavy Duty and High capacity EOT Cranes for Core sectors
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The Company has offices in France and Italy. It has decent presence in Europe along with India.It has two subsidiaries in Europe one based in France and other in Italy.It also has joint venture with Matiere SAS for manufacture of Bailey Bridges, Metallic and Modular Bridges in the territories agreed between the Joint Venture Partners.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Titagarh Wagons Stock Performance

The stock got listed on exchanges in year 2008 at price of 134 INR. Soon after listing it felt heat of Global Crisis and stock tanked below 50 INR levels. Due to lack of Wagon orders from Railways Company suffered and traded at below 20 mark in year 2014 period.

The Budget announcement of Wagons requirement for Railways is a a major trigger for the Company. Most of the times Company shares perform in anticipation of budget announcement and gives excellent return to investors.

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The stock prices have suffered recently and it is trading below 100 INR mark.It does pay regular dividend.

Titagarh Wagons My Opinion

Titagarh Wagons is a Engineering Company. It is mainly in business of Wagon manufacture but recently Company is trying hard to reduce dependency on Wagon manufacturing.

It is trying to diversify its operations. The Wagon order from Indian Railways are adhoc and if there is no order then Company have suffered in past. This dependency on single client is not good for any Company. So in recent years it has tried to penetrate into new business areas like Defense, Ship building and Tractor manufacture.

The sectors it is entering now are good sectors to say the least. Defense is one focus area for the Government. Government wants in house development of defense items. Tractors are another growth area for the Company. These two sectors have potential to become leading revenue generator for it if executed right.

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During the year 2013 I invested in this Company and sold all my holding in year 2015. It gave me excellent returns. I am keeping this Company in my watchlist as it takes route of using its present expertise to get more revenue streams and export the products as well.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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