Shares of Titagarh Rail Systems Ltd., formerly known as Titagarh Wagons, rose over 4% on Wednesday after it bagged a Rs 857 crore order from Gujarat Metro Rail.
The order is to manufacture 72 standard-gauge metro cars for Surat Metro, according to an exchange filing. The execution of the project is slated to begin 76 weeks after signing the contract and is likely to be completed in 132 weeks thereafter.
"TRSL has decided to expand its capacities at a capex of about Rs 650 crore in the next couple of years, a large sum of which is already invested and bearing fruit," a senior management of the company said in the filing.
Shares of the company rose as much as 4.41% to Rs 803.9 apiece, the most in a single day since Sept. 27, before paring gains to trade 2.56% lower at Rs 789.65 apiece as of 9:34 a.m. This compares to a 0.59% decline in the NSE Nifty 50.
It has risen 253% on a year-to-date basis. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 56.2.
All seven analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.8%.
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