Bengal Finance and Investment Pvt Ltd, the investment arm of Ashish Kacholia, has made a fresh investment in this company, which offers train control and signalling systems services such as train collision avoidance systems, electronic interlocking systems, etc., check it out.
New Investment
Ashish Kacholia has picked up a fresh stake of 1.55 percent and 1.91 percent through his investment firms, Bengal Finance and Investment Pvt Ltd, and Suryavanshi Commotrade Private Limited, respectively, taking the total stake to 3.46 percent.
Price Movement
With a market capitalization of Rs 1,986 crore, the shares of Quadrant Future Tek Ltd are currently trading at Rs 496, down 33.3 percent from its 52-week high of Rs 744. The stock has given a positive return of 11.51 percent in the last 1 year.
About the Company
Quadrant Future Tek Limited is a research-oriented company that deals with train control and signalling systems in India. Its product portfolio consists of train collision avoidance systems, electronic interlocking systems, and various interconnect products like electrical connectors and wiring harnesses. The company also produces specialty cables for railway rolling stock, the naval defense industry, renewable energy, automotive, and railway signaling applications.
Also read: Defence stock in focus after board sets date to consider stock split and dividend
Segments
Quadrant Future Tek Limited has a wide variety of products and services. Under specialty cables, it deals in control and power cables, railway coaches, locomotives, and EMU signalling cables, and screened and unscreened power cables for naval vessels. It also provides TUV-certified solar cables with added-value products such as connectors and junction boxes, irradiation cross-linked cables used in the automobile industry, and indoor/outdoor signalling cables used in railways.
Followed by Train Control Systems services such as train collision avoidance systems and electronic interlocking systems. Additionally, the company also produces electrical connectors used in rail, defence, and automotive industries, as well as wiring harnesses with end-to-end solutions for cable assemblies in respective industries.
Production Capacity
For the Specialty Cable division, the company has an installed capacity of 1,887.60 MT as of September 30, 2024. For the Train Control & Signalling division, it has an installed capacity of 4,492 Station TCAS, 2,264 Locomotive TCAS, and 3,744 Remote Interface Units.
IPO Highlights
The shares made a debut on the stock exchange on 14 January, 2025. The price for the ipo was set at Rs 290 per share, for a fresh issue of Rs 290 Crores. It got listed at Rs 370 on NSE, reflecting a strong listing gain of 29 percent.
Financial Highlights
The company reported a revenue of Rs 27 crore in Q3 FY25, down 30 percent from its Q3 FY24 revenue of Rs 38.93 crore. It also reported a decline of 32 percent, from its Q2 FY25 revenue of Rs 39.63 crore. It reported consecutive losses of Rs 8.45 crore, 3.56 crore and 1.03 crore in Q3 FY25, Q2 FY25 and Q3 FY24 respectively. The company is trading at a P/E of 144.82x, significantly higher than the industry P/E of 116.69x. It has an ROE and ROCE of 40 percent and 23 percent, respectively.
Written by Satyajeet Mukherjee
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