New Delhi, April 6 -- Global brokerage Jefferies sees strong growth in the Indian Railways' rolling stock capex, but finds one stock worthy to capitalise on this trend: Titagarh Rail Systems.

Jefferies has initiated coverage on railway stocks Titagarh and Jupiter Wagons, with 'Buy' and 'Underperform' ratings, respectively. While both stocks trade at 40 times price to earnings (PE), the brokerage finds Jupiter Wagons too expensive for the growth differential. It has a target price of Rs.810 for Titagarh, suggesting a 32% upside from the last closing price of Rs.615, while for Jupiter Wagons, the global brokerage sees a 22% decline.

Jefferies remains bullish on railway rolling stocks as it sees a 10% FY26-30E CAGR in sectoral spending, le...