The shares of one of the leading manufacturers of Heavy Engineering equipment manufacturer in the Railway industry surged 8.5 percent to a 52-week high price of Rs 170.95 per share after its subsidiary entered a business agreement with a Russian company.
Oriental Rail Infrastructure Ltd is a micro-cap stock with a market capitalization of Rs 913 crore. At 3:25 p.m., company shares were trading at Rs 169 a share, up Rs 11.50 or 7.30 percent from the previous close price on the Exchange.
According to the company’s exchange filing, Oriental Foundry Private Limited,(OFPL) a wholly-owned subsidiary of Oriental Rail Infrastructure, has entered into an agreement with “United Waggon Company,” to provide full design, technical details, and support for modern wagons and bogies for Indian Railways.
United Wagon Company is Russia’s leading and one of the world’s biggest manufacturers of freight cars. The company is on the Russian Ministry for Economic Development’s list of strategically important organizations.
Oriental Foundry Private Limited is in the business of manufacturing bogies, and couplers, and the company enjoys over 30 percent market share in seats & berths.
The company Wagon is used by Indian Railways and many other Industries. OFPL has set up two new manufacturing plants Bogie Spring plant in Kutch, Gujrat, and Bogie and Coupler Manufacturing Plant in Chopadava. And also expanded a manufacturing capacity for Wagons at its Plant at Lakadiya, Gujrat.
Oriental Rail Infrastructure shares gained a multibagger return of 312 percent in the last six months and 59 percent in a year. A shareholder investment of Rs 1 lakh in the company, a year ago would be worth Rs 4.12 lakhs.
In FY2022, the company reported a strong order of more than Rs 1,900 Crores.
The Company revenue has jumped by 96 percent year on year, from Rs 58 crores in Q2FY23 to Rs 114 crores in Q2FY24. During the same period, Net Profit increased by 40 percent, from Rs 5 crores to Rs 7 crores.
Oriental Rail Infrastructure Ltd is engaged in the manufacturing and supply of several items for the Indian Railways and other industries. The company products include all types of Recron, Seat & Berth, and Compreg Boards, and also engaged in trading timber woods and all its products.
Written by Omkar Chitnis
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