Shares of Titagarh Wagons and Bharat Heavy Electricals Limited (BHEL) saw surge in buying activities on Wednesday, in an otherwise muted broader market, after their consortium bagged an order worth ₹9,600 crore to supply Vande Bharat trains to Indian Railways. While Titagarh Wagons shares rose over 3%, BHEL share price jumped nearly 8% on the BSE.
As per the deal, the consortium of BHEL and Titagarh Wagons (BHEL-TWL Consortium) will supply 80 sleeper-class Vande Bharat trains within 72 months. The consortium, also called as Technology Partner, will undertake maintenance of Vande Bharat train sets, including up-gradation of the government manufacturing units and depots assigned by Indian Railways. BHEL is the lead member in the consortium.
“The consortium of Bharat Heavy Electricals Limited and Titagarh Wagons Limited (BHEL-TWL Consortium) has been awarded an order for 80 Vande Bharat train sets in the mega tender of Indian Railways,” the companies said in their exchange filing on Tuesday.
Buoyed by the development, BHEL shares gained 3.2% to hit a high of ₹74.29 in the first two hours of trade so far as compared to the previous closing price of ₹71.94 on the BSE. The share price of the state-owned company has risen 32% in a year and 18% in a six-month period. In the calendar year 2023, the counter has fallen 9%, while it shed nearly 2% in a month. The midcap stock hit a 52-week high and low of ₹91.45 and ₹41.40, respectively, on December 5, 2022, and June 20, 2022, respectively.
In a similar trend, Titagarh Wagons shares rallied as much as 7.6% to hit a 52-week high of ₹310 against Tuesday’s closing price of ₹287.95 on the BSE. The railway-related stock has seen sharp rebound in the last 10 months, from its 52-week low of ₹93.35 touched on June 20, 2022. The multibagger stock, with a market capitalisation of 3,520 crore, has surged 183% in a year, while it added 87% in the past six months. On the year-to-date (YTD) basis, the counter has grown 30%, while it rose 23% in a month.
In a post market release on Tuesday, Titagarh Wagons and BHEL informed exchanges that their consortium secured order to supply 80 sleeper-class Vande Bharat Trains to Indian Railways at the rate of ₹120 crore per train (excluding taxes & duties), amounting to ₹9,600 crore. Operated by Indian Railways, the Vande Bharat train is the fastest train in India, with a top speed of 180 kmph.
The order includes comprehensive maintenance of the trains for 35 years, as well as to equip, upgrade, operate, and maintain the exclusive place provided in the manufacturing unit at ICF Chennai and two depots assigned by Indian Railways.
Earlier on April 6, the consortium of Ramkrishna Forgings and Titagarh Wagons (RKFL-TWL Consortium) has received an order worth ₹12,226.50 crore from the Ministry of Railways for manufacturing and supply of forged wheels under long term agreement under Aatma Nirbhar Bharat. As per the deal, the consortium will manufacture and supply 15,40,000 forged wheels of different rolling stocks to the railways over a period of 20 years in accordance with the terms and conditions of the agreement.
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