This small-cap railway stock engaged in developing advanced Train Control and Signaling Systems for Indian Railways’ KAVACH project, alongside manufacturing specialty cables and hardware, is in focus after securing an order worth Rs. 156 crore from RailTel Corporation of India Limited for KAVACH projects.
Stock Price Movement:
With a market capitalization of Rs. 2,068.20 crores, the share of Quadrant Future Tek Limited has reached an intraday high of Rs. 524.25 per equity share, rising nearly 1.29 percent from its previous day’s close price of Rs. 517.55. Since then, the stock has retreated and is currently trading at Rs. 517.05 per equity share.
What Happened:
Quadrant Future Tek Limited (formerly Quadrant Cables Pvt. Ltd.) has received a Letter of Acceptance (LOA) from RailTel Corporation of India Limited for a significant project valued at Rs. 155.93 crores.
The project involves the supply, installation, and commissioning of the Kavach (Indigenous Train Collision Avoidance System) across 502.2 RKM of railway tracks, covering 71 stations in the East Central Railway zone. The project is set to be completed within 21 months, starting in April 2025. This order marks a significant step for Quadrant in the railway infrastructure sector.
KAVACH Technology Partnership:
Quadrant plays a key role in the KAVACH technology, securing a Rs. 978.6 crore order from CLW to supply and commission equipment for 1,200 locomotives, with a 3 percent annual maintenance fee for 11 years after warranty. The project is awaiting RDSO approval and the ISA Certificate.
Additionally, Quadrant has signed an MoU with RailTel to promote KAVACH in India and internationally, focusing on technology maintenance, upgrades, and support, positioning itself as an OEM for global KAVACH projects.
Recent quarter results:
Quadrant Future Tek Limited’s revenue has decreased from Rs. 38.93 crore in Q3 FY24 to Rs. 27.01 crore in Q3 FY25, which has dropped by 30.62 percent. The net loss of the company has increased from Rs. 1.03 crore in Q3 FY24 to Rs. 8.45 crore in Q3 FY25.
Company Overview:
Quadrant Future Tek Limited was established in 2015 and specializes in next-gen Train Control and Signaling Systems for Indian Railways’ KAVACH project, enhancing passenger safety. It operates a state-of-the-art facility in Mohali, Punjab, for manufacturing and testing specialty cables, adhering to strict quality standards like ISO and IRIS.
Written By – Nikhil Naik
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