The share of small cap railway engineering stock opened on a strong note on Friday and gained 6% after it bags a contract worth 350 cr from Gujarat Metro Rail CorporationLtd.
With a market capitalization of Rs 10,110 cr,the shares of Titagarh Rail System Ltd gained 6% and closed there trading session at Rs 845 .The stock reached an intraday high of Rs 866 during the day.
In the exchange filing,the company mentioned that it as signed a contract with Gujarat Metro Rail corporation Ltd (GMRC) for the design, manufacture, supply, testing, commissioning and training of 30 standard gauge cars valued at Rs. 350 crore for Ahmedabad Metro Rail Phase-II Project.The Ahmedabad Metro Rail Phase-II Project is being implemented by GMRC at a cost of Rs. 13,500 crore. The project will add 28.2 km of Metro lines to the city’s existing network.
The company has recorded a net revenue of Rs.935 in Q2 FY 24.And the company’s consolidated net profit was increased to 70.59 cr in Q2 FY24 compared to 61.78 during the last quarter.
The company’s stock has given 80 percent return during the period of 6 months.Coming to the important financial ratios of the company,Return on Equity for FY 22-23 was 14.91 percent,Return on Capital Employed was 18.58 during the same period.The company has decreased its Debt to Equity from 1.02 to 0.26 in FY 22-23.
According to the latest shareholding pattern,promotores of the company have 44.95 percent holdings,the public have 27.73 percent share,FII have a holding of 16.85 percent and remaining 10.46 percent is with DIIs.
Titagarh Rail Systems Limited (TRSL) offers mobility solutions to billions with its prominent presence in both the Passenger and Freight Rail Systems including railway wagons, components, passenger coaches and Metro Coaches. TRSL is the largest private sector manufacturer of railway wagons and an established player in passenger coaches. The Company has been awarded the largest ever order for wagons by Indian Railways in addition to the orders for manufacture and supply of Metro Trains for Pune Metro and Surat Metro projects. TRSL is also the co-recipient of prestigious orders for Vande Bharat trains & Forged Wheels.
Written by Vaibhav V Patil
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