Titagarh Rail Surges 8% on ₹170 Crore Defence Order, Aims for Global Growth with Amber Group Pact

19 Feb 2024 , 03:17 PM

Titagarh Rail Systems witnessed a significant surge in its share price, rising by 8% in early trade on February 19, following the announcement of a substantial order worth ₹170 Crore from the Ministry of Defence. At 09:26 hrs, the stock was quoting at ₹1,032.80 on the BSE, marking a notable increase of ₹76.30, or 7.98%.

The order entails the procurement of 250 specialized wagons, as disclosed by the company in its press release. The execution timeline for the contract is set to commence 12 months after its signing and conclude within a span of 36 months.

This development comes on the heels of Titagarh Rail Systems’ strategic move in January 2024, wherein it inked an agreement with the Amber group to venture into the railway component and subsystem business both domestically and internationally. Through this partnership, TRSL and Amber group, via its wholly owned subsidiary Sidwal Refrigeration Industries Pvt Ltd, plan to invest up to ₹120 Crore each to acquire equal control in the Special Purpose Vehicle (SPV) for establishing the new railway component business, along with fresh equity investment in Firema, Italy.

The company also reported a robust performance in its financials, with a remarkable 130% year-on-year surge in net profit to ₹75 Crore in Q3. Moreover, revenue from operations witnessed a notable increase of 24.6% year-on-year, amounting to ₹954.7 Crore in Q3FY24.

Titagarh Rail Systems’ stock had reached its 52-week high of ₹1,249.00 and its 52-week low of ₹203.00 on January 20, 2024, and February 23, 2023, respectively. Presently, the stock is trading at a level 17.31% below its 52-week high and 408.77% above its 52-week low, reflecting its resilience and growth potential in the market.