On Thursday, the railway infrastructure company saw a 3.5 percent increase in its share price, reaching Rs 552 per share, following the signing of an MoU with a South Korean company, to establish a Composite Sleeper Plant to cater for Indian Railways.
At 11:55 a.m., K&R Rail Engineering Ltd shares were trading at Rs 546.95 a share on the Stock Exchange, up 2.50 percent, and the company has a market capitalization of Rs 1,159 crores.
According to the company’s exchange filing, the company has entered into a Memorandum of Understanding (MOU) with UNECO Co., Ltd., a South Korean firm, to establish a Composite Sleeper Plant in India.
The purpose of this plant is to cater to the needs of Indian Railways, DFCC/METRO’s, PSU, and private corporations. The projected cost of the project is approximately Rs. 400 crores, and it will be located in Nagarnar, near the NMDC Steel Plant in Madhya Pradesh.
K&R Rail Engineering Ltd specializes in providing comprehensive services for the establishment of private railway sidings on a turnkey basis, encompassing various construction activities related to railway infrastructure. These services include conducting independent engineering surveys, planning, and project management for private entities.
The company undertakes projects across a range of industries such as steel, aluminum, thermal and captive power, major ports, and cement factories. Notable clients of K&R Rail Engineering Ltd include ACC Ltd, BHEL, GMR, JSW, Dalmia Bharat, among others.
In terms of financial performance, the company experienced a remarkable 146 percent year-on-year increase in revenue, rising from Rs 58 crore in Q3FY23 to Rs 143 crore in Q3FY24. However, the net profit remained nearly stagnant during the same period, hovering around Rs 1 crore.
Over the past six months, shares of K&R Rail Engineering Ltd have declined by 26%, while over the last 12 months, they have seen a notable gain of 45%.
Written by Omkar Chitnis
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