Shares of Titagarh Rail Systems Ltd. surged nearly 12% to record high on Tuesday after it formed a strategic partnership with ABB India Ltd. for the supply of propulsion systems for metro rolling stock projects in India.
The agreement includes technology transfer and licensing as part of the government's 'Make in India' initiative, according to an exchange filing.
Titagarh specialises in the design, manufacture, supply, commissioning and servicing of various passenger rolling stock and metro coaches for Indian and international markets. While, ABB is involved in the design, manufacture and servicing of propulsion systems and electrical equipment relating to rolling stock used for railways and metro systems.
Shares of Titagarh Rail Systems Ltd. rose as much as 11.81%, before paring gains to trade 7.62% higher at 10:05 a.m., compared to a 0.37% advance in the NSE Nifty 50.
The stock has risen 349% on a year-to-date basis. The total traded volume so far in the day stood at 7.8 times its 30-day average. The relative strength index was at 77, implying that the stock may be overbought.
All eight analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3.9%.
Shares of ABB India Ltd. rose as much as 1.91%, the highest since Sept. 12, before paring gains to trade 0.24% higher at 10:05 a.m. This compares to a 0.37% advance in the NSE Nifty 50.
The stock has risen 62.2% on a year-to-date basis. The total traded volume so far in the day stood at 4.1 times its 30-day average. The relative strength index was at 62.
Of the 30 analysts tracking the company, 14 maintain a 'buy' rating, 10 recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 6.4%.
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