Rs 2,255.69 Crore Order Book: Rail Infrastructure Secures Rs 2.78 Crore Order from ICF Chennai

With a PE ratio of 42.5x, the company trades at a premium compared to the industry PE of 23.7x. The company has ROCE of 12.3 per cent and ROE of 15.2 per cent.  

Oriental Rail Infrastructure Limited shares were in demand among investors on today's trading session. The share price climbed 4.5 per cent in early trades to hit an intraday high of Rs 186.75.

Oriental Rail Infrastructure Limited has announced the acquisition of a significant order from the Integral Coach Factory (ICF), Chennai, a part of Indian Railways. The order, valued at approximately Rs. 2.78 crore, involves the supply and installation of 36 coach sets of seats and berths for the LSCN/BW2 coach. The delivery is scheduled to be completed by May 10, 2025. The payment terms are structured such that 90 per cent of the payment will be made upon the issuance of an inspection certificate by the designated agency and proof of dispatch/delivery, while the remaining 10 per cent along with 100 per cent of installation charges will be settled post-installation acceptance.  This order is a testament to Oriental Rail Infrastructure Limited's ongoing relationship with Indian Railways and its commitment to delivering quality rail infrastructure solutions.

Oriental Rail Infrastructure Limited is currently trading at Rs. 185 with a market capitalisation of approximately Rs. 1,200 crore. Over the past year, the stock has experienced a decline of 34.83 per cent, although it has achieved a 37.54 per cent return over a three-year period. The stock's 52-week high stands at Rs. 445, while the low is Rs. 137.2.  Despite recent challenges, the company continues to engage in significant contracts, such as the recent order from the Integral Coach Factory, showcasing its active role in the rail infrastructure sector.

In the Quarterly Results of December 2024, the company reported revenue of Rs 152.82 crore, compared to Rs 186.13 crore in September 2024 and Rs 146.58 crore in December 2023, reflecting a YoY growth of 4.26 per cent and a QoQ decline of 17.90 per cent. The net profit stood at Rs 7.52 crore, decreasing from Rs 10.46 crore in the previous quarter and Rs 12.51 crore in the same quarter last year, showing a YoY decline of 39.89 per cent and a QoQ decline of 28.11 per cent. The net profit margin for December 2024 was 4.92 per cent, compared to 5.62 per cent in September 2024 and 8.53 per cent in December 2023.

For the full-year results of FY24, the revenue was Rs 526.20 crore, increasing from Rs 325.43 crore in FY23, reflecting a growth of 61.69 per cent. The net profit for FY24 stood at Rs 28.21 crore, rising significantly from Rs 27.30 crore in FY23, with a growth of 2381.82 per cent. The net profit margin for FY24 was 5.19 per cent, compared to 0.34 per cent in FY23.

As of December 2024, the shareholding pattern indicates that promoters hold 56.05 per cent, foreign institutional investors (FIIs) hold 0.42 per cent, and the public holds 43.54 per cent. Compared to the previous quarter (September 2024), there is a slight increase in promoter shareholding from 54.81 per cent to 56.05 per cent, while public shareholding has decreased from 44.87 per cent to 43.54 per cent. FIIs have also seen a marginal rise from 0.33 per cent to 0.42 per cent.

With a PE ratio of 42.5x, the company trades at a premium compared to the industry PE of 23.7x. The company has ROCE of 12.3 per cent and ROE of 15.2 per cent.  

Investors must keep this Small-Cap stock on their radar.

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