Titagarh Rail Systems Limited (TRSL) has received a significant boost to its order book with a new contract from the Ministry of Railways. The Kolkata-based rolling stock manufacturer has been awarded an order worth Rs 312.69 crore for the manufacture and supply of 780 BVCM-C wagons.

Order Details

The company disclosed the receipt of a Letter of Advance Acceptance (LOA) from the Ministry of Railways in a filing to the stock exchanges. Key details of the order include:

• Order Value: Rs 312.69 crore
• Scope: Manufacture and supply of 780 BVCM-C wagons
• Execution Timeline: Nine months from the date of contract placement

Market Response

The news of this substantial order had a positive impact on TRSL's stock performance:

• Shares rose by 1.40% to Rs 939.00, although they later pared some gains
• This uptick comes against the backdrop of a 42.14% decline in the stock price over the past 12 months

Analyst Outlook

Despite the recent stock performance, analysts maintain a largely positive outlook on Titagarh Rail Systems:

• 7 out of 8 analysts recommend a 'buy' rating
• 1 analyst maintains a 'hold' recommendation
• The average 12-month consensus price target suggests a 19.00% upside potential

Company Profile

Titagarh Rail Systems Limited specializes in:

• Freight wagons
• Passenger coaches
• Metro train components
• Rolling stock for domestic and international markets

This latest order reinforces TRSL's position in the railway manufacturing sector and demonstrates the company's continued ability to secure significant contracts from the Ministry of Railways.

Execution and Impact

The execution of this order is scheduled to be completed within nine months from the date of contract placement. This timeline underscores the company's manufacturing capabilities and its readiness to meet the demands of large-scale projects.

The successful fulfillment of this order could potentially strengthen TRSL's relationship with the Ministry of Railways and pave the way for future contracts, contributing to the company's long-term growth prospects in the rail manufacturing sector.

Titagarh Rail Systems Limited , a prominent railway equipment manufacturer, has clinched a significant contract worth ₹312.7 crore from the Ministry of Railways for the manufacture and supply of 780 BVCM-C wagons. This substantial order marks a notable achievement for the company in the railway sector.

Contract Details

The company received a Letter of Advance Acceptance (LOA) from the Ministry of Railways for this project. Here are the key details of the contract:

Project Significance

This order represents a substantial business win for Titagarh Rail Systems Limited, reinforcing its position in the railway equipment manufacturing sector. The contract not only adds to the company's order book but also demonstrates the trust placed in Titagarh's capabilities by the Indian Railways.

Execution Timeline

According to the disclosure made by the company, the execution of this order is scheduled to be completed within nine months from the date of contract placement. This timeline underscores the efficiency expected in the manufacturing and supply process.

Company's Disclosure

In compliance with regulatory requirements, Titagarh Rail Systems Limited has made the necessary disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company confirmed that this contract does not fall under related party transactions and that no promoter or group companies have any interest in the entity awarding the contract.

This new contract is expected to contribute significantly to Titagarh Rail's business operations and financial performance in the coming quarters, as the company works to fulfill this substantial order for the Indian Railways.