Rs 14,750 Crore Order Book: This Multibagger Railway Wagons Company Commences Trainset Production for Bengaluru Metro's Yellow Line

The stock gave multibagger returns of 255 per cent in just 1 year and a whopping 2,450 per cent returns in 3 years.

Titagarh Rail Systems Limited (TRSL), the prominent Indian rolling stock manufacturer has commenced the production of trainsets as part of a contract with China Railway Rolling Stock Corporation (CRRC) for the Bangalore Metro Rail Corporation Limited's (BMRCL) Phase 2 Yellow Line project. This marks a significant milestone in Titagarh’s ongoing contribution to India's urban transportation infrastructure.

The contract between BMRCL and CRRC Nanjing Puzhen Co Ltd, signed in December 2019, encountered challenges, which led to delays in meeting the original deadlines. To address the delay in the rolling stock supply, CRRC sought additional time and subsequently entered a Memorandum of Understanding (MoU) with Titagarh Rail Systems. Under this MoU, Titagarh will manufacture the trainsets at its state-of-the-art facility in Uttarpara.

Under the agreement with BMRCL, Titagarh is responsible for producing 34 of the 36 trainsets needed for the Yellow Line at its advanced manufacturing facility. Only two trainsets, comprising 12 coaches, will be manufactured in China. To meet the specific requirements of the project, Titagarh has established a dedicated stainless steel production line at its facility. Production began on May 18th, 2024, and the first trainset is slated for delivery in August 2024.

The 21-km Yellow Line, extending from RV Road to Bommasandra, is a crucial metro corridor designed to enhance connectivity and alleviate traffic congestion in Bengaluru. Upon completion, this line is expected to significantly improve urban mobility for the city's residents. Titagarh’s involvement in this high-profile project underscores its dedication to supporting national infrastructure projects through reliable transportation solutions.

Also Read: Penny stock at Rs 1.87 hits 52-week high: Company signs an MoU worth Rs 25,00,00,000 with Felix Industries for renewable energy; details inside!

The impressive range of manufacturing capability allows Titagarh to support a wide array of transportation needs, reinforcing its position as a leader in the rail transportation industry. The Company's ongoing investments in advanced production technologies and its commitment to quality and innovation continue to drive its success and contribution to the national infrastructure.

On Friday, shares of Titagarh Rail Systems Ltd (Formerly Titagarh Wagons Limited) surged 2.57 per cent to Rs 1,482.30 per share from its previous closing of Rs 1,445.10.

Titagarh Rail Systems Ltd a leading railway wagon company in India, mainly manufactures and sells freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialized equipment and bridges, ships, etc. The company is also expanding its capacity and setting up component facilities in both operating segments. The company has a market cap of over Rs 19,000 crore.

According to the Quarterly Results, the net sales increased by 8 per cent to Rs 1,052.41 crore, operating profit increased by 31.5 per cent to Rs 134.75 crore and net profit increased by 56.3 per cent to Rs 81.16 crore in Q4FY24 compared to Q4FY23.

In its annual results, the net sales increased by 38.6 per cent to Rs 3,853.30 crore, operating profit increased by 60.7 per cent to Rs 491.74 crore and net profit increased by 108.6 per cent to Rs 288.75 crore in FY24 compared to FY23.

Order Book: The order book stands at Rs 14,750 crore as of March 31, 2023 (Passenger Rolling Stocks orders amounting to Rs 6,750 crore and Freight Rolling Stocks orders amounting to Rs 8,000 crore).

The promoters of the company sold a 5.37 per cent stake in the company and decreased their stake to 42.46 per cent in March 2024 compared to 47.82 per cent in March 2023. The stock gave multibagger returns of 255 per cent in just 1 year and a whopping 2,450 per cent returns in 3 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: This article is for informational purposes only and not intended as investment advice.