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Titagarh Rail Systems Limited (TWL) Fair Value & Analysis

Industrials · IN · Market cap ₹50.8B (≈ $539M) · ISIN INE615H01020

What is Titagarh Rail Systems Limited really worth?

TR Titagarh Rail Systems Limited TWL · BSE
Price₹871.90
Fair Value₹228.67
Upside−73.8%
Quality60/100

A solid business, but trading 281% above our fair value of ₹228.67.

As of Aug 27, 2026, the fair value of Titagarh Rail Systems Limited is ₹228.67 per share against a price of ₹871.90, so the fair value sits 74% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 3y +16.5 %/yr)
!Thin margins · 4.7% net margin
!Moderate moat 47/100
!Evidence only medium, so the estimate is less certain

For context

·0.06% dividend yield
Evidence: Medium Range ₹134.55 – ₹285.84

Fair value as of: Aug 27, 2026

From 25 valuation models · updated 10 days ago

Share price +2.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹285.84). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹134.55 to ₹285.84) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹1,860 ₹45.95 Fair Value ₹228.67 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹45.95 – ₹1,860 · fair‑value band ₹134.55 – ₹285.84 · the ₹871.90 price screens above the ₹228.67 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Titagarh Rail Systems Limited (TWL) currently trades at ₹871.90, while our model-based Fair Value estimate is ₹228.67, implying the stock looks roughly 281.2% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ₹342.52 per share, and 0 of the 25 models we run sit above the ₹871.90 price. Bear case: the Asset-Based group reads lowest at ₹53.96, and 25 of the 25 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Titagarh Rail Systems Limited generated revenue of ₹27.8B at a net margin of 4.7%. Revenue grew 102.6% year over year. It earns a return on equity of 14.9%. Net debt stands at ₹2.1B. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹134.55 (bear case) to ₹285.84 (bull case); at ₹871.90, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 53% above its 52-week low. For context, the median of 10 Industrials peers we cover trades at −47% fair-value upside, at −74%, TWL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence ₹172.01 ₹200.80 ₹226.00 74
FCF DCF ₹5.14 ₹8.51 ₹19.25 71
Growth DCF ₹4.79 ₹9.55 ₹19.16 70
All 25 models by family
DCF Models
FCF DCF ₹5.14 ₹8.51 ₹19.25 71
Owner Earnings ₹151.51 ₹345.72 ₹753.42 67
5Y Revenue Exit ₹147.87 ₹301.26 ₹622.88 65
5Y EBITDA Exit ₹161.59 ₹329.28 ₹656.63 67
5Y P/E Exit ₹129.16 ₹327.61 ₹602.80 64
10Y Revenue Exit ₹100.64 ₹314.42 ₹494.34 61
10Y EBITDA Exit ₹118.82 ₹343.46 ₹781.34 59
10Y P/E Exit ₹95.27 ₹274.85 ₹601.80 55
Earnings-Based
Graham-Dodd ₹74.05 ₹516.39 ₹724.68 60
Lynch FV ₹185.38 ₹264.83 ₹344.27 58
PEG = 1.0 ₹185.38 ₹264.83 ₹344.27 55
EPV best evidence ₹172.01 ₹200.80 ₹226.00 74
Dividend Discount
Gordon GGM ₹0.0200 ₹0.0400 ₹0.0600 64
DDM Multi-Stage ₹0.0200 ₹0.0300 ₹0.0400 64
Multiples
P/E Multiple ₹171.51 ₹228.67 ₹285.84 63
P/S Multiple ₹138.84 ₹185.12 ₹231.40 58
P/B Multiple ₹138.84 ₹185.12 ₹231.40 55
EV/EBIT ₹256.23 ₹341.88 ₹427.54 66
EV/EBITDA ₹214.12 ₹285.73 ₹357.35 67
EV/Revenue ₹182.67 ₹261.27 ₹339.87 53
Asset-Based
NCAV (Graham) ₹40.27 ₹53.96 ₹80.53 54
Growth DCF
Growth DCF ₹4.79 ₹9.55 ₹19.16 70
Economic Profit
Residual Income ₹77.43 ₹101.02 ₹309.98 62
ROIC Compounder ₹224.35 ₹340.20 ₹458.74 68
Growth Earnings
Growth-Adj P/E ₹239.77 ₹342.52 ₹445.28 65

Widest divergence: Growth Earnings (₹342.52) versus Dividend Discount (₹0.0300). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 37.7 as of Aug 24, 2026
P/S ratio 1.77 P/E × margin
EPS (TTM) ₹11.27 price ÷ EPS = P/E 37.7
Dividend yield 0.1% payout 4.4%
Net margin 4.7% FY2023
Return on equity 14.9% TTM
More key figures
Profitability
Return on assets (EBIT) 4.6% avg 5y
Operating margin 8.7% TTM
Growth
Revenue (TTM) ₹27.8B TTM
Revenue growth (YoY) +103% 3y avg +16.5%
EPS growth (YoY) +21.7%
Balance sheet & cash flow
Free cash flow ₹41.8M FY2023
Net debt ₹2.1B FY2023 · ≈ 49.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 56 · Market factors (momentum, volatility) 55

Profitability 54
Margins and returns on capital today
Quality Growth 84
Are margins and returns improving?
Cashflow 9
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 76
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Titagarh Rail Systems Limited manufactures and sells freight wagons, passenger coaches, and metro trains in India and internationally. It operates through Freight Rolling Stock, Passenger Rolling Stock, and Shipbuilding, Bridge, and Defence segments.

Full company description

Titagarh Rail Systems Limited manufactures and sells freight wagons, passenger coaches, and metro trains in India and internationally. It operates through Freight Rolling Stock, Passenger Rolling Stock, and Shipbuilding, Bridge, and Defence segments. The company offers flat, hopper, tank, box, automobile-carrying, covered, and special purpose wagons; and brake vans. It also provides cast bogies, couplers, draft gears, loco shells, and CMS crossing components. In addition, the company offers passenger rolling stock products, including high speed electric loco, EMU train sets, urban metro rail systems, light rail transport, diesel electric multiple units, body shells, and bogies; and propulsion and electrical equipment, such as traction converters and power electronics, propulsion systems, auxiliary power supply products, electronic equipment, traction motors, train control and monitoring systems, and hardware and software products. Further, it provides re-design, maintenance, assistance and global, repair, inspection and refurbishing, systems and electrical equipment upgrade, exteriors and interiors face-lift, and power upgrading services. Additionally, the company designs and constructs warships, passenger vessels, tugs, and other specialized self-propelled vessels and its components. It also offers modular panel bridges, bailey bridges, unibridges, and matière X bridge and defence products, such as shelters, specialized wagons, EMI/EMS containers, CBRNe equipment, mine ploughs, pressure vessels, and specialized canopies. The company was formerly known as Titagarh Wagons Limited and changed its name to Titagarh Rail Systems Limited in May 2023. Titagarh Rail Systems Limited was incorporated in 1997 and is based in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2019 – FY2023 · reported fiscal years

Titagarh Rail Systems Limited reported revenue of ₹27.8B in FY2023 versus ₹16.7B in FY2019, a compound +13.5%/yr. Reported net income was ₹1.3B in FY2023.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2023)
₹27.8B
Latest YoY
+45.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.5%
EBIT margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
0.9% (2019) → 8.7% (2023)
Value creation/yr We only publish this rate when it is defensible. Reason: no profitable base year
not computed
Revenue +13.5%/yr
FY19 ₹16.7B
FY20 ₹17.6B
FY21 ₹15.0B
FY22 ₹19.1B
FY23 ₹27.8B
Net income
FY19 −₹285M
FY20 −₹342M
FY21 −₹150M
FY22 −₹3.3M
FY23 ₹1.3B

TWL screens 281% overvalued. Compare with Union Pacific Corporation →

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Cite: Fair Value Calculator (2026). "Titagarh Rail Systems Limited Fair Value". https://www.fairvalue-calculator.com/stock/TWL.BSE

Peer Group

Railroads · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Above median
Fair Value upside −73% · Bottom 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 5% · Below median
Operating margin (TTM) 9% · Above median
Revenue growth 103% · Top 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 37.7× · Pricier than 75% of peers
P/B 5.28× · Pricier than 75% of peers
P/S (TTM) 1.83× · Pricier than median
P/FCF 12.7× · Pricier than median
EV/EBITDA 19.3× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $307.41 $141.29 −54%
CSX Corporation CSX $48.99 $12.62 −74%
Canadian Pacific Kansas City Limited CP $94.12 $34.33 −64%
Canadian National Railway Company CNR C$175.06 C$92.68 −47%
Norfolk Southern Corporation NSC $332.96 $114.36 −66%
Westinghouse Air Brake Technologies Corporation WAB $297.57 $144.80 −51%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.87 ¥5.65 +16%
MTR Corporation 0066 HK$32.04 HK$17.85 −44%
CRRC Corporation 601766 ¥5.98 ¥9.53 +59%
Daqin Railway Co 601006 ¥4.72 ¥6.22 +32%

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Frequently asked questions

Is Titagarh Rail Systems Limited (TWL) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹228.67 versus a price of ₹871.90, about −74% upside (overvalued).
What is the fair value of TWL?
Our model-based fair value for Titagarh Rail Systems Limited is ₹228.67 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹871.90.
What is the quality score of TWL?
Titagarh Rail Systems Limited has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Titagarh Rail Systems Limited (TWL)?
Our model-based price target is the fair value of ₹228.67 (as of Aug 27, 2026) from 25 valuation models. Cautious scenario ₹134.55, optimistic scenario ₹285.84. It is a calculation from audited fundamentals, not an analyst target.
What is the Titagarh Rail Systems Limited stock forecast for 2026?
Our models put fair value at ₹228.67, about −74% upside versus a price of ₹871.90 (overvalued). Cautious scenario ₹134.55, optimistic scenario ₹285.84. The calculation is refreshed regularly with new filings.
What is the revenue of Titagarh Rail Systems Limited (TWL)?
Titagarh Rail Systems Limited reported trailing-twelve-month revenue of about ₹27.8B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of TWL?
The net profit margin of Titagarh Rail Systems Limited is about 4.7%, meaning it keeps roughly 4.7% of revenue as net income. Based on the latest reported figures.
Does Titagarh Rail Systems Limited pay a dividend?
Titagarh Rail Systems Limited currently shows a dividend yield of about 0.06% relative to its recent price (as of Aug 27, 2026).
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