Shares of this small-cap company surged 5% in Monday’s trading session after receiving an order worth Rs. 1,909 crores from the Ministry of Railways. The shares have delivered a multibagger return of 101 percent to its shareholders in one year.
With a market capitalization of Rs. 12,637 crores, the shares of Titagarh Rail Systems Ltd started Monday’s trading session on a higher note at Rs. 969.85 apiece, gaining around 5 percent compared to its previous close of Rs. 898.60.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received an order from the Ministry of Railways for the manufacture and supply of 4,463 BOSM Wagons worth Rs 1,909.04 crores.
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.
Moreover, 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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