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Titagarh Rail Systems expands its capacity to produce 800-850 train coaches annually, each valued at ₹10 crore. This is likely to generate ₹8,000-8,500 crore in revenue. Titagarh has experienced remarkable market performance, with its shares appreciating by nearly 262% over the past year.
Titagarh Rail Systems is significantly expanding its production capacity to manufacture 800-850 train coaches annually. Each coach is valued at approximately ₹10 crore, positioning the company to generate annual revenues ranging from ₹8,000 crore to ₹8,500 crore.
Umesh Chowdhary, Vice Chairman and Managing Director of Titagarh Rail Systems highlighted the current favourable conditions in the railway sector. Chowdhary expressed optimism regarding the anticipated government budget announcement, expecting an increase in track capacity.
He emphasised the government's recognition of railways as a pivotal route to economic growth, drawing parallels to the transformative investments in the road sector over the past decade.
Explore:Titagarh Rail Systems Ltd Share Price
Historically, over 90% of the company's revenue was derived from the rail freight segment. However, there is now potential for the passenger rail segment to contribute more than 60% of total revenues.
This shift indicates a strategic realignment of the company's focus towards the passenger rail segment, which could eventually account for 50-60% of its overall revenue.
Titagarh Rail Systems has experienced remarkable market performance, with its shares appreciating by nearly 262% over the past year. The company's market capitalisation stands at approximately ₹23,769.92 crore, reflecting strong investor confidence and positive market sentiment.
The railway sector is poised for substantial growth over the next couple of decades, mirroring the development seen in the road sector.
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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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