Shares of this smallcap company fell around 10 percent despite its announcement of launching a 25T Bollard Pull Tug for the Indian Navy. The shares have delivered more than 70 percent return to its shareholders in one year.
With a market capitalization of Rs. 10,881 crores, the shares of Titagarh Rail Systems Ltd started Wednesday’s trading session on a higher note at Rs. 887 compared to its previous close of Rs. 876.55. During the trading session, the shares hit a low of Rs. 790, making a loss of around 10 percent and are currently trading at Rs. 795 apiece.
According to the exchange filing, the company announced that it had launched its second 25T Bollard Pull Tug, “Bahubali”, for the Indian Navy. The ship is built at the company’s facility located in Titagarh, Barrackpore. The launch is part of the six 25 BP tugs order secured by the company in November 2021 from the Indian Navy under the Ministry of Defence’s Make in India initiative.
Moreover, the company highlighted that these ships offer comfortable accommodations and mess facilities for crew members, ensuring prolonged operational efficiency.
Fixed communication and navigation equipment enhance safe navigation and coordination with other ships. Additionally, the tug’s towing configuration versatility includes stern towing and pushing ahead capabilities, ensuring adaptability in various situations.
Furthermore, as a vital contributor to the transformative policies initiated by the Government of India, including Make in India and Atma Nirbhar Bharat, the company is actively involved in the construction of naval vessels comprising five Diving Support Crafts and six 25 BP tugs for the Indian Navy.
Coming onto the company’s financial statements, the revenue increased marginally by 2.13 percent from Rs. 935 crores during the September quarter to Rs. 955 crores in the December quarter. In addition, the net profits increased by 6 percent from Rs. 71 crores to Rs. 75 crores during the same period.
As of December 2023, the railway company’s total order book stood at Rs. 27,466 crores (including a proportionate share of the order book of Rs 13,326 cores to be executed in the JV). Furthermore, the total unexecuted wagon orders stood at 19,259 wagons with a mix of Indian railway and private wagons.
The company aims to significantly expand its production capacity to 1,000 wagons per month by the end of this financial year, up from 600-700 wagons per month. On the other hand, the company aims to strengthen its engineering capabilities in India to support the growing Indian passenger rail market leveraging low-cost capabilities and synergies from Firema.
The strategic alliance with Sidwal Refrigeration Pvt Ltd (a WOS of Amber Enterprises India Limited), and a strategic partnership with Amber Enterprises India, to set up a new facility in India to manufacture critical railway components and subsystems for Metro Coaches /Passenger Rolling Stock.
Headquartered in Kolkata, Titagarh Rail Systems was incorporated in 1997. The company mainly manufactures and sells Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised equipment and Bridges, Ships, etc. The company caters to both domestic and export markets.
Written By Vaibhav Patil
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