Railway Stock Rockets 8% After Bagging ₹170 Cr Order

Titagarh’s share price continued to make gains for the second straight session on Monday going up over 8%.

What Happened: The railway company on Saturday informed the exchanges about bagging an order from the Ministry of Defence, Government of India. The order is to produce and deliver 250 specialized wagons. The contract, valued at approximately ₹170 crore, is slated to commence 12 months after its signing and is expected to be fulfilled within 36 months.

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Last month the Kolkata-headquartered company collaborated with the Amber Group from Delhi to enter the railway component and subsystem business. Together, they have established a special purpose vehicle (SPV) to expand their footprint in Indian and European markets.

After a great run last year, the stock came under pressure in the past few weeks along with other railway stocks. The company witnessed its consolidated net profit, increasing by 129.9% year-on-year to ₹74.8 crore in the quarter ended December, compared to ₹32.6 crore in the corresponding period last year. Additionally, revenue from operations rose by 24.6% to ₹954.7 crore during the October-December period, compared to ₹766.4 crore in the previous year.

Price Action: Titagarh’s share price was up 7.67% to trade at ₹1,031.25 as the markets opened on Monday.

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