Titagarh Wagons rose 2.50% to Rs 288.25 at 10:07 IST on BSE after the company said it forayed into metro coach business.
The company made the announcement before trading hours today, 16 June 2014.
Meanwhile, the BSE Sensex was down 115.85 points, or 0.46%, to 25,112.32.
On BSE, so far 3,553 shares were traded in the counter, compared with an average volume of 75,756 shares in the past one quarter.
The stock hit a high of Rs 295.25 and a low of Rs 278.35 so far during the day. The stock hit a 52-week high of Rs 312.55 on 10 June 2014. The stock hit a 52-week low of Rs 69.85 on 5 August 2013.
The stock had outperformed the market over the past one month till 13 June 2014, rising 48.55% compared with 5.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 166.04% as against Sensex's 15.86% rise.
The small-cap company has an equity capital of Rs 20.06 crore. Face value per share is Rs 10.
Titagarh Wagons has made its maiden foray into the large potential of metro coach business. Recently it bagged a contract for rehabilitation of 56 coaches (7 rakes) from the Kolkata Metro Railway. The scope of the job would involve midlife special repair and rehabilitation of the rakes, the company said in a statement.
Speaking on this development Mr. Umesh Chowdhary, vice chairman & managing director said "It is a very important milestone for the Group. Since this marks our entry into the Metro Coach business segment. While our ultimate objective is to find a suitable technology partner and add to the present portfolio of products and undertake manufacturing of metro coaches and other modern passenger coaches, this order provides us with a stepping stone into this segment of business. With this initial contract in place, we will intensify our efforts and establish our meaningful presence in this segment."
Titagarh is already into manufacturing of passenger coaches by way of Electrical Multiple Units and are currently executing an order for 23 rakes of AC EMU / MEMU which was received from the Railways, the company said.
Mr. Chowdhary further added, " We have substantially upgraded our facilities in Uttarpara, and are continuously improving it further to make ourselves fully prepared for manufacturing all sorts of passenger coaches including metro coaches and others."
Speaking on this same he said, "Since the Railway orders for wagons have been extremely depressed, the Company had to suffer a substantial drop in performance last year. However, the new initiatives taken up by the Company including the entry into passenger coaches and metro coaches, would not only de-risk the Company from being in one segment of the business i.e. wagons, but also provide immense growth opportunities.
The new Government has been giving all the right kind of messages about developing the country's Railway systems to becoming a modern, world class Railways and it is probably for the first time in my memory that I have seen such a great vision, focus and attention towards development of Railways. While there is a sense of optimism in all sectors of the economy owing to positivity exuded by the new Government, I am particularly optimistic that the Railway sector would be one of the biggest growth drivers for the country and all our efforts at Titagarh are focused towards keeping ourselves in a complete state of preparedness to cater to the opportunities that get generated in this sector. The current order for rehabilitation of metro rakes is also a step towards this direction."
Net profit of Titagarh Wagons declined 62.47% to Rs 1.76 crore on 50.39% decline in net sales to Rs 73.73 crore in Q4 March 2014 over Q4 March 2013.
Titagarh Wagons is one of the leading private sector manufacturers of wagons and coaches in India. The company is engaged in the business of manufacturing railway wagons, EMU (rail coaches), bailey bridges, heavy earth moving and mining equipment, steel and sg iron castings of moderate to complex connguration etc. as an industry partner to the defence research and development establishment, ministry of defence, it also manufactures other products for the Indian defence establishment, such as special wagons, shelters and other engineering equipments.
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