Titagarh Rail Systems Ltd. shares surged as much as 13% to hit the day's high of ₹721.95 on Tuesday, April 7, following the company's subsidiary receiving in-principle approval for a ₹610 crore brownfield expansion project in Falta, West Bengal. According to reports from Upstox, the project falls under the Centre's shipbuilding development scheme and was granted approval by the Union Ministry of Ports, Shipping and Waterways. Under the scheme, the Centre will extend capital assistance of around ₹129 crore towards eligible plant and machinery, subject to compliance with scheme guidelines. The expansion is expected to enhance the shipyard's infrastructure and technological capabilities, enabling it to cater to defence, commercial, and export-oriented shipbuilding requirements while supporting India's ambitions in the global maritime sector.
Vice Chairman and MD of Titagarh Rail Systems, Umesh Chowdhary, emphasized the strategic significance of the approval, stating that it reflects the government's commitment to strengthening the domestic shipbuilding ecosystem. As reported by Upstox, Chowdhary described the in-principle approval as a strong endorsement towards building a self-reliant and globally competitive maritime nation. The proposed expansion would help develop a state-of-the-art shipyard in West Bengal, contributing to defence indigenisation and catering to domestic as well as global shipbuilding requirements. The project is also expected to reinforce West Bengal's position as an emerging hub for advanced maritime manufacturing.
On Monday, brokerage firm Jefferies initiated coverage on Titagarh Rail with a 'buy' rating and a price target of ₹810 per share. As reported by CNBC TV18, the brokerage estimates the company to be a key beneficiary of increasing passenger and metro coach demand. Jefferies projects a 35% revenue compound annual growth rate (CAGR) and a 43% earnings per share (EPS) CAGR over the financial year 2026-2030, driven by a 14x increase in passenger segment revenue over the next five years with strong order book visibility.
According to CNBC TV18, 11 of the 12 analysts covering Titagarh Rail have a 'buy' rating while the remaining one maintains a 'hold' recommendation. The stock is currently trading 12.1% higher at ₹716.5 on Tuesday. However, as reported by CNBC TV18, the stock remains 19% down so far in 2026 and has corrected over 25% from its 52-week high of ₹974.35. This marks the fourth straight day of gains for the stock, during which it has gained 23%.
