Shares of Titagarh Rail Systems were in focus after Morgan Stanley downgraded the stock to equal-weight from overweight and sharply cut its target price to ₹771 per share from ₹1,017 per share.
In its latest note, Morgan Stanley highlighted that Titagarh has underperformed the Sensex by around 21% over the past three months, prompting a reassessment of its near-term outlook. The brokerage acknowledged that the freight segment is expected to remain a large contributor to earnings over the next few years, but flagged concerns around order momentum.
According to the report, the freight business has not seen any major new orders recently, and backlog visibility remains limited, which could weigh on sentiment despite the segment’s long-term importance. In contrast, Morgan Stanley noted that the passenger segment has witnessed healthy order inflows, offering some support to the company’s overall business mix.
At the time of the note, Titagarh shares were trading at a current market price (CMP) of ₹785.15, slightly above the revised target price.
Disclaimer: This news article is based on a brokerage report. The views expressed are those of the brokerage and do not represent the views of this publication. This is not investment advice.
