The shares of the railway equipment manufacturer gained up to 4 percent after the company received a prestigious order from Integral Coach Factory (ICF), Chennai, Indian Railways worth Rs 1.11 crore.
With a market capitalization of Rs 1,431.07 crore, the shares of Oriental Rail Infrastructure Ltd were trading at Rs 232.85 per share, increasing around 3 percent as compared to the previous closing price of Rs 227.15 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Oriental Rail Infrastructure Ltd received a prestigious order for ‘Integral Coach Factory (ICF), Chennai, Indian Railways for Supply and Installation of 14 sets of chairs for Non-AC chair car. This order is valued at Rs 1.11 crore.
Financial Condition:-
Examining the company’s financial performance, revenue magnified by 32 percent from Rs 92.81 crore in Q1FY24 to Rs 123.06 crore in Q1FY25, but during the same time frame, net profit zoomed significantly by 8 percent from Rs 5.44 crore to Rs 5.86 crore.
Order Book:-
Oriental Rail Infrastructure Limited (ORIL) currently holds an order book of ₹1,729.41 crore. This includes a major contract from Indian Railways worth ₹1,249.09 crore to manufacture 3,055 BOXNHL wagons, with delivery scheduled by August 31, 2024, reflecting an increase from the original order.
Additionally, ORIL secured a ₹432.16 crore contract to manufacture 1,200 BVCM-C wagons, with a deadline of March 31, 2026. A smaller contract worth ₹12.79 crore involves supplying seats and berths for LWACCN coaches, expected to be completed by December 24, 2024.
Remarkable return & prominent investor:-
The stock gave a return of 93 percent return in one and a multi-bagger return of 313.85 percent return in the last 5 years. As a result, If an investor invests Rs 1 lakh in the company, it would be worth Rs 4.13 lakhs in 5 years.
Ace investor Mukul Agrawal holds 34,00,000 equity shares which represent 5.53 percent of the company as of September 2024.
Shareholding Pattern:-
According to the latest shareholding pattern, the Promoters hold a 54.81 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.33 percent stake, while Retail Investors hold a 44.86 percent in Oriental Rail Infra.
Ratio analysis:-
The company’s critical ratios show that the return on equity increased from 2.95 percent in FY22-23 to 10.47 percent in FY23-24, while the return on capital employed zoomed from 8.27 percent to 15.12 percent. The net profit margin (NPM) for fiscal year 23-24 is 5.70 percent.
Company profile:-
Oriental Rail Infrastructure Limited produces, buys, and distributes Recron, Seat and Berth, Lavatory Door, and Compreg Boards. The firm trades wood, ferrous and nonferrous metals, casting tools, slabs, rods, and other ferrous and nonferrous materials.
Written by:- Abhishek Singh
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