Shares of this smallcap company locked a 5 percent upper circuit in Thursday’s trading session after receiving an order worth Rs 19.33 crore from Indian Railway. In just one month, the shares have delivered around 50 percent returns to its shareholders.
Price Movement:
With a market capitalization of Rs. 2,327 crores, the shares of Oriental Rail Infrastructure Ltd started Thursday’s trading session on a higher note at Rs. 378.55, clocking a 5 percent upper circuit, also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 360.55 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had orders worth over Rs. 19.33 crores for manufacturing and supply of 194 sets of ‘Seats’ for LHB GS coaches, 96 sets of ‘Seats and Berths’ for LHB SCN coaches, and 29 sets of ‘Seats and Berths’ with MS corrugated sheets for LHB AC3T coaches.
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Furthermore, 95 percent of the contract value will be paid upon receipt of an inspection certificate from the nominated agency and proof of dispatch or delivery of the material. The remaining 5 percent will be paid after the goods are received, inspected, and accepted.
Financials:
Looking at the company’s financial statements, the revenue increased by 17 percent from Rs. 146.58 crores during the December quarter to Rs. 172.04 crores in the March quarter. Contrastingly, the net profits declined by 65 percent from Rs. 12.51 crores to Rs. 4.37 crores during the same timeframe.
Recent Update:
In March 2024, Oriental Foundry Private Limited, a wholly-owned subsidiary of the company, secured an order valued at Rs. 1,249.09 crores from the Ministry of Railways (Railway Board), Indian Railways.
The order was received for the manufacture and supply of 3,055 BOXNHL Wagons (including an additional 91 Nos. BOXNHL Wagons).
Additionally, Oriental Rail Infrastructure announced that the company along with its subsidiary company (Oriental Foundry Private Ltd) has total orders in hand of approx. Rs 1,500 crores.
Prominent Investor:
According to the latest shareholding pattern, Ace Investor Mr Mukul Agrwal bought a fresh stake in the company’s shares during the recent quarter by acquiring approximately 34 lakh equity shares equivalent to 5.53 percent and the current holding value of his investment amounts to Rs. 128.7 crores.
Important Financial Ratio:
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 2.95 percent during FY 22-23 to 10.47 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 8.27 percent to 15.12 percent during the same timeframe.
Company Profile:
Headquartered in Mumbai, Oriental Rail Infrastructure was incorporated in 1991. The company is engaged in the manufacturing, buying, and selling of all types of Recron, Seat and Berth, and Compreg Boards, and also engaged in trading of timber woods and all its products.
Written By Vaibhav Patil
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