Titagarh Rail Systems Receives 'Buy' Rating, Shows Strong Growth Potential

Titagarh Rail Systems, a midcap company in the railway industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term growth, with an annual operating profit growth rate of 28.70%. In fact, in the last quarter, the company declared outstanding results with a 70.96% growth in operating profit.
The company has also shown consistent positive results for the past 5 quarters, with a high operating profit to interest ratio of 5.68 times. Its net sales have grown by 54.08% and its PBDIT is at a record high of Rs 115.09 crore. These factors, along with the stock's bullish technical trend, make it a promising investment option.

Institutional investors have also shown confidence in Titagarh Rail Systems, with a high holding of 27.31%. This indicates that these investors have the resources and capability to analyze the company's fundamentals, making their increased stake of 10.57% in the previous quarter a positive sign.

However, there are some risks associated with investing in this company. The high debt to EBITDA ratio of 6.23 times may affect its ability to service debt. Additionally, the return on equity is low at 2.99%, indicating low profitability per unit of shareholders' funds. The stock also has a very expensive valuation with an 8.7 enterprise value to capital employed.

Despite these risks, Titagarh Rail Systems has consistently outperformed the BSE 500 index in the last 3 years, with a return of 428.44%. Its profits have also risen by 443.8%, resulting in a low PEG ratio of 0.2. This, along with the company's strong growth potential, makes it a promising 'Buy' for investors looking for a midcap stock in the railway industry.