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Recent border tensions had weighed on infrastructure projects, especially in states along the western border, including railway's expansion and upgradation plans.
Titagarh Rail's Q3 numbers disappointed the Street on all key parameters. Weakness was felt across revenue, profit and profitability.
Titagarh Rail announced the addition of a new business vertical for Shipbuilding and Maritime Systems, wherein it will undertake "marine business including shipbuilding, ship repair and other maritime business activities."
Shares of railway stocks Railtel Corp, Texmaco Rail, Rail Vikas Nigam, Titagarh Rail, Jupiter Wagons and IRFC surged 15-26 percent in the past month.
At close, the Sensex was down 494 points or 0.6 percent at 81,006 and the Nifty was down 221 points or 0.9 percent at 24,749. About 1,199 shares advanced, 2,580 shares declined, and 101 shares remained unchanged.
Titagarh Rail shares surged more tha 6 percent after Morgan Stanley Asia Singapore Pte bought a 0.57 percent stake in a bulk deal.
Titagarh Rail shares will trade ex-dividend on August 20. The company's board of directors declared a final dividend of Rs 0.80 per equity share with a face value of Rs 2 for FY24.
Titagarh Rail's revenue saw a marginal decline in Q1 which also dragged its EBITDA margin lower in the first quarter of FY25.
Morgan Stanley sees a strong growth outlook for Titagarh Rail, referring the company as a key beneficiary of the revival of the Indian railways.
Morgan Stanley views the freight segment as a cash cow for Titagarh, while the passenger business is a new growth engine.
Titagarh plans to complete the order of 204 coaches within the timeline of March 2025.
Most of the railway stocks had run up in the last month anticipating continued capital expenditure for railways in the budget
In the past three months, the stock of this midcap company has jumped 39 percent as against 3 percent decline in the Sensex benchmark
Electronics City Metro corridor to miss December 2023 deadline; Titagarh to supply trains from February 2024
All 216 coaches will be supplied to BMRCL by March 2025, of which around 204 will be manufactured at the company's facility in Uttarpara near Kolkata.
Chowdhary added that Make In India and Atmanirbhar Bharat have truly helped Indian industry achieve scale and compete with international firms in global tenders.
