Multibagger in the making: This railway equipment manufacturer bags a new work order worth Rs 2548.80 lakhs!

Today shares of the company gained more than 3.00 per cent in the morning trade.

Cosmic CRF Limited informed in the exchange filing that the company had bagged an order worth Rs 2548.80 lakhs. The order is for the supply of Cold Rolled Formed Sections for BOXNHL Wagon. The order is expected to be completed within 9 months.

Earlier last month, the company bagged an order worth Rs 1748.73 lakhs for the supply of cold rolled formed railway wagon parts. The order is expected to be completed within 4 months. 

The company posted robust financial results in FY23. The company's revenue for FY23 stood at Rs 121.49 crore. The operating profit of the company stood at Rs 12 crore, while the PAT of the company stood at Rs 6 crore.

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Cosmic CRF Limited is a qualified and RDSO-approved supplier of Cold Rolled Stainless Sections to renowned wagon manufacturers. In addition to this, our Company also supplies cold rolled stainless sections to direct orders of the railways through tender procurement. The company’s clients include Titagarh Wagons Limited, Hindusthan Engineering & Industries Limited, Melbrow Engineering Works Private Limited, Jindal Rail Infrastructure Limited, Allied Construction Engineers & Fabricators, etc.

On Thursday, the stock opened at Rs 273.00, with a high and low of Rs 276.00 and Rs 269.00. The stock is currently trading at Rs 269.00, up by 3.56 per cent over its previous close of Rs 259.75.

The stock has a 52-week high of Rs 331.95 and a 52-week low of Rs 181.00. The company has an ROCE of 35.7 per cent and an ROE of 51.2 per cent, with a market capitalisation of Rs 172 crore.

From the past six to nine months, railway stocks like Jupiter Wagons Limited, Titagarh Rail Systems and Rail Vikas Nigam Limited have delivered multibagger returns of over 300 per cent returns and this shows a positive trend in the railway stocks. Cosmic CRF Limited can also become one of them.

The stock can show tremendous growth and investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.