Titagarh Wagan Company analysis

Industry Overview : Indian railway, as one of the largest railway network worldwide under single management. Indian railway as India’s largest employer is also one of India’s largest and important industry with 2.6% of Indian GDP with Gross Traffic Receipt of railway is ₹176834 cr. (Around $24 Billion) Indian railway operates 7566 locomotive, 37840 coach, 7146 stations, 300 yards, 2300 Good shades, 700 repair shops and total workforce of 1.53 million.

Further, for FY 2016-17, Gross Traffic Receipts estimated at Rs 184,820 crore (US$ 27.4 billion), a growth of 10.1 per cent. Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its advertising potential, which is in line with the Railway Budget proposal of increasing non-fare earnings to over Rs 5,000 crore (US$ 741.2 million) in five years.   Freight earnings stood at Rs 111,852 crore (US$ 16.58 billion) in FY 2015-16, growing 5.7 per cent over 2014-15.

Freight loading stood at 1,107 million tonnes in FY 2015-16 compared to 1,095 million tonnes in 2014-15, indicating growth of 1.1 per cent.Big plus point of railway is that it is ideal for long-distance travel and movement of bulk commodities, apart from being an energy efficient and economic mode of conveyance and transport. As India is Seventh largest country as per area, we need good transportation facilities of Coal, Cement, agriculture products.  The Government of India has focused on investing on railway infrastructure by making investor-friendly policies. It has moved to enable Foreign Direct Investment (FDI) in railways to improve infrastructure.

Company overview : Titagarh Wagon incorporated in 1997, is one of the leading manufacturer of Railway wagon. The company’s wagon products include hopper wagons, covered wagons, open top wagons, container flat wagons, tank wagons, flat wagons, coaches, bogies and special purpose wagons. The company is also manufacturing heavy Earth moving equipment including hydraulic excavators, crawler mounted cranes, and heavy duty and high capacity EOT cranes for core sectors, as well as engages in manufacturing project jobs and provides product supporte. The company also manufacturing defence equipment and also registered with Ministry of defence.  The company also operating in ship building, breaking, Bailey Bridge marine engineering, mining equipment manufacturing, naval architecture and ocean engineering.

SHAREHOLDING : 


Financials
and Ratios.  

 2010-112011-122012-132013-142014-1515-16
Revenue685.70662.02514.77264.42379.31336.71
Net Profit81.3976.6223.883.729.866.31
Net Profit Margin12.2011.894.781.432.622.03
EPS42.8 840.1011.901.874.910.57
Book value277.99307.66314.91312.11310.8566.15
RoE15.5612.413.780.601.580.82
ROCE15.1312.113.680.581.550.81
Debt to Equity0.140.130.090.10.020.0 2
Asset Turnover87.6774.8559.8932.8149.3835.64
Dividend Payout18.4820.9433.60213.4281.39165.41
Dividend per Share884440.8

Future Prospects : before the Suresh Prabhu, railway was going through bad Time as there was no big changes. Road transparent was big compitition for railway freight transporters. There was high costs as Ministry was subsidising passenger tickets by increasing freight charges. Now as it is changing, the Ministry is making different Freight Corridor. Also railway is started giving orders of new wagons and in the business Titagarh Wagon is one of the leading player.

Recent bad performance by the company is mainly due to railway and its lack of Expenditure. But still in that time also, management makes sure that company will survive. As now the railway is starting its expenditure and also aiming $500 Billion investment to increase the capacity in anticipated economic recovery, the company is looking attractive. Invest if it suits your Risk profile.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter