Titagarh Rail shares jump 9% after Morgan Stanley initiates with overweight rating
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Shares of Titagarh Rail Systems jumped nearly 9% to Rs 1,124 in Tuesday’s trade on BSE after the global brokerage firm Morgan Stanley initiated coverage on the stock with an 'Overweight' rating and a target price of Rs 1,285, which indicates an upside potential of 24% from the previous day's closing price of Rs 1,034.7. The brokerage firm affirmed its observation of a strong resurgence in India's railways and expressed confidence in Titagarh being a major beneficiary of it. Morgan Stanley views freight as a substantial revenue driver for Titagarh while recognising the passenger business as a promising avenue for growth. It anticipates a strong 28% earnings compound annual growth rate (CAGR) over FY 24-27. Considering a valuation of 35x FY26 PE, Morgan Stanley believes it's reasonable, given the company's strong earnings visibility and improving return ratios. Also Read: Election Jitters? Why stock market's fear...