Shares of Titagarh Rail Systems Ltd, formerly known as Titagarh Wagons Limited, surged as much as 8.9% on Friday, to hit an intraday high of ₹866 apiece on the BSE, after the company bagged a contract worth ₹350 crore from the Gujarat Metro Rail Corporation (GMRC), for the design, manufacture, supply, testing, commissioning and training of 30 standard gauge cars for Ahmedabad metro rail phase-II programme.

The Ahmedabad metro rail phase-II Project is being implemented by GMRC at a cost of ₹13,500 crore. The project will add 28.2 km of metro lines to the city's existing network, says the company. "We are excited to be a part of Ahmedabad’s vision to expand connectivity within the state to facilitate business growth and user convenience. The prototype has to be delivered within 70 weeks from the Letter of Acceptance (LOA) dated 29th August, 2023 and delivery completion is 94 weeks from the said LOA. We are proud to announce that these state-of-the-art metro cars will be manufactured at our cuƫng-edge facility in Uttarpara, located in the Hooghly district of West Bengal, India. We look forward to working with all states to provide mobility solutions essential for overall progress and development," says a senior management official.

On Friday, the share price of the company opened at ₹808.15, up 1.65% as against the previous closing price of ₹795. At the time of reporting, the share price of Titagarh Rail was trading 5.25% higher at ₹836.75. During the session, the market capitalisation of the freight component manufacturer stood at ₹10,656.94 crore with more than 1.40 lakh shares exchanging hands on the BSE as against the two-week average of 0.89 shares. The company touched a 52-week high of ₹867 on October 18 this year, whereas the 52-week low of ₹148.30 on November 2 last year. In the past one month, three months and one year, the midcap stock has given 9.43%, 35.09% and 420.22% in returns, respectively.

Meanwhile, in the July to September period of the fiscal year 2023-24, the company's profit before tax surged 106% year-on-year to ₹95 crore, as against ₹46 crore in the corresponding period of the previous year. The company’s revenue from operations, during the period under review stood at ₹935 crore, witnessing a growth of 54%, as against ₹606 crore in the same period last year. The company's EBITDA (earnings before income, tax, depreciation and amortisation) stood at ₹115 crore in the September quarter, up 109% YoY as against ₹55 crore in the same period last year.

During the quarter under review, the company dispatched the highest-ever 759 wagons.

"Indian Railway, for the first time, aims to increase the freight traffic by rail from existing 27% to 45% by 2030. Annual freight target expected to increase from 1400m tonnes to 3000m tonnes by 2027 implying an increase in the wagon fleet from current ~336,900 to ~500,000 by 2027," says the company.

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Gujarat Metro Rail Corporation (GMRC)

Titagarh Rail shares zoom 9%; here's why