Titagarh Rail shares gain after bagging a ₹312 crore order for BVCM-C wagons

Shares of rolling stock and rail infrastructure company Titagarh Rail Systems Ltd. recovered from the lows of the day and surged on Monday, July 21, after the company announced that it has received a Letter of Advance Acceptance (LOA) for a ₹312 crore order.In an exchange filing, the company announced that it secured the order from the Ministry of Railways, Government of India.

Specifics of the Project

The rail infrastructure project is for the manufacturing and supply of 780 BVCM-C Wagons.
The company is expected to complete the order in the span of nine months from the date of placement of the contract.Earlier this year, in February, the company received an order from Ambuja Cements and ACC Ltd. to manufacture and supply 16 BCFCM rake wagons with BVCM wagon. The order is worth ₹537.11 crore.

In the recent interaction with CNBC-TV18, Titagarh Rail’s Vice Chairman & MD Umesh Chowdhary highlighted that the company’s current order book stands at ₹24,000 crore, and that he is expecting higher growth in the passenger rail segment. He is hopeful of the passenger segment to contribute to more than 50% of the company’s overall topline.

On the freight business, Chowdhary said that the current execution rate is between 700-800 wagons per month.

Shares of Titagarh Rail are trading 1.3% higher after the order win at ₹938. The stock is down over 50% from its record high of ₹1,707.7.

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