Over 2,500% return in 5 years! Top funds hold stakes in this small-cap stock. Do you own? | Stock Market News

One small-cap PSU stock has given investors a hefty return over the last few years; it has skyrocketed nearly 1,300 per cent over the last three years. It also appears to be a favourite of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs). By the end of the September quarter of the current financial year, several top fund houses and insurance companies of India held a stake in the stock. The stock under focus is Titagarh Rail Systems.

Titagarh Rail Systems share price trend

Titagarh Rail Systems share price has soared over 2,500 per cent in the last five years and over 1,200 per cent in the last three years on the NSE. However, the stock has experienced some profit-booking over the short term. Over the last year, the stock has moved up by just 13 per cent.

The multibagger stock hit a 52-week high of ₹1,896.95 on June 27 after hitting a 52-week low of ₹780.90 on March 13 this year on the NSE.

Titagarh Rail Systems shareholding pattern

Exchange data show that domestic mutual funds held 1,38,67,104 shares, equivalent to a 10.30 per cent stake, in the company by the end of the September quarter of FY25.

HDFC Large and Mid Cap Fund (3.57 per cent), HSBC Aggressive Hybrid Fund (1.05 per cent), Motilal Oswal Large and Midcap Fund (1.04 per cent) and Franklin India Multi Cap Fund (1.01 per cent) were the top funds with over 1 per cent stakes in the company in the September quarter.

Insurance firm ICICI Prudential Life Insurance Company, too, held a 1.1 per cent stake in Titagarh Rail Systems in the September quarter.

Foreign Portfolio Investors cumulatively held 16.33 per cent shares of the company, out of which The Master Trust Bank of Japan Ltd. as trustee of HSBC India Infrastructure EQU held 16,00,000 shares or 1.19 per cent stake and Smallcap World Fund Inc. held 16,87,257 shares or 1.25 per cent stake.

Titagarh Rail Systems share price target

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, Titagarh is encountering strong resistance near the anchored VWAP, as shown in the chart, and has slipped below its 200-day exponential moving average (DEMA) in the current session. This signals a weakness in this small-cap stock’s momentum.

“We anticipate a potential retest of the ₹1,100 level, which corresponds to an unfilled bullish gap. Given this setup, we recommend waiting for a dip to ₹1,100 before entering a long position, with a target of ₹1,450 and a stop-loss at ₹950 on a daily closing basis. This strategy ensures a favourable risk-reward ratio while aligning with the broader technical structure,” said Patel.

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