Rs 12,226.50 crore order: Multibagger railways wagon company and Ramkrishna Forgings Limited wins contract from Ministry of Railways; hits 52-week high!

The stock gave multibagger returns of 320 per cent in just 1 year whereas BSE small-cap Index is up by 33 per cent.

Titagarh Rail Systems Ltd also known as Titagarh Wagons Ltd, a leading automobile company in India announced A consortium between Ramkrishna Forgings Limited (RKFL) and Titagarh Rail Systems Limited (TRSL), has been awarded the contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years, under the AatmaNirbhar Bharat Initiative by Ministry of Railways, Government of India.

The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at Rs 12,226.50 crore.
The AatmaNirbhar Bharat Initiative supports Indian firms in manufacturing quality forged wheels for Indian Railways, aiming for complete localization and self-reliance in wheel production. The wheels manufactured under this agreement will cater to the requirements of multiple platforms, such as the LHB coaches, WAG9 Locomotives, Vande Bharat Express Trains, etc.

The RKFL-TRSL consortium will be establishing a state-of-the-art manufacturing facility to manufacture these forged wheels, with total annual production targeted at 2,00,000 wheels when fully operational. Not only will this facility address the demands of the domestic railway sector, but also help the consortium address the latent demand from the private sector as well as export markets.

On Friday, shares of Titagarh Wagons Ltd surged 4.40 per cent to make a high of Rs 434.50 per share. At 03:30, shares of the company ended the day in green, up 2.16 per cent to Rs 425.20 per share. The shares of the company saw a spurt in volume by more than 2 times on BSE.

Titagarh Wagons Limited mainly manufactures and sells freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment & bridges, ships, etc.

The stock gave multibagger returns of 320 per cent in just 1 year whereas BSE small-cap Index is up by 33 per cent. Do you own this railways wagon stock in your portfolio?