HSBC has reiterated its Buy rating on Titagarh Rail but reduced the target price to ₹1,425 from ₹1,980. The brokerage cited slower-than-expected execution of metro and Vande Bharat orders as the primary reason for the downgrade.
While the pipeline for metro rolling stock orders remains strong, delays have led HSBC to cut revenue and EPS estimates by 9-11% for FY26-27. It expects execution to pick up with the resumption of project awards post-state elections.
Recent news suggests that Titagarh Rail is also diversifying its offerings, including exporting passenger coaches and exploring defense contracts. These initiatives, coupled with a strong order book of over ₹12,000 crore, position the company well for long-term growth, albeit with near-term execution challenges.
