Buy Titagarh Wagons, target of Rs 350-360: Agarwal

Rajesh Agarwal of Eastern Financiers advised buying Titagarh Wagons for one year horizon, with a price target of Rs 350-360.

Agarwal told CNBC-TV18, “The only stock which we like at this point of time is Titagarh Wagons among railway stocks. If you look at fundamentals, the numbers have been pretty bad from the last three-four quarters and that’s because of the low procurement of wagons by the railways, low sanctions of designs and low sanction of orders. But I think almost all the negatives have already been discounted. The stock has been in downtrend from the price of maybe Rs 500 plus odd levels in November 2010 till the recent price of Rs 250. So I think it has already discounted everything.”
“The company now has an order book of around Rs 600 crore. With the kind of shortage in railway wagons, I think it is just a matter of time when orders start flowing in. The company would also look at some corporate restructuring in the near future of de-merging some of its business and merging some of its business - that would again be a positive trigger. So, at this price point of Rs 280-290 odd level, it’s a good buy for a long term horizon of maybe one year for a price target of Rs 350-360 odd levels,” Agarwal added.