Ramkrishna Forgings Rallies 9%, Titagarh Wagons Rises As Consortium Bags Railways Order
Last Updated: March 15, 2023, 13:10 IST
Ramkrishna Forgings, Titagarh Wagons consortium emerge as lowest bidder for railway ministry order (File for representation)
Shares of Titagarh Wagons and Ramkrishna Forgings jumped 4 per cent and 9 per cent, respectively, on the BSE
Shares of Titagarh Wagons and Ramkrishna Forgings jumped 4 per cent and 9 per cent, respectively, on the BSE in Wednesday’s intra-day trade as the consortium emerged as the L1 bidder for manufacturing and supply of forged wheels.
Ramkrishna Forgings and Titagarh Wagons consortium has emerged as the lowest bidder for manufacturing and supply of 15.4 lakh forged wheels over 20 years under the Aatmanirbhar Bharat initiative of the Ministry of Railways.
The total quantity of forged wheels to be supplied will be around 1.54 million wheels over a period of 20 (twenty) years. Intimation regarding Letter of Award (LOA) will be submitted as and when the LOA will be received, the company said.
On January 10, Railway Ministry tweeted that there has been a 91.6 per cent increase in Indian Railway coach production numbers since 2014. The import of forged wheels has been affected due to the Russia-Ukraine war. In September, 2022 Ashwini Vaishnaw had announced the floating of a tender inviting only Indian players to set up a manufacturing facility to produce these wheels.
Titagarh Wagons has given closer to 800 per cent returns in the past three years, while the latter has soared closer to 600 per cent during the same period.
Meanwhile, in past six months, the stock price of RKFL has zoomed nearly 40 per cent, as compared to 3 per cent decline in the S&P BSE Sensex. In past one year, it has rallied 51 per cent, as against 4.4 per cent rise in the benchmark index.
RKFL manufactures forged and computer numerical control machined components for the automobile, railways, defence, oil& gas and mining sectors. It manufactures components for transmission and axles including shafts, gear box, crown wheel, pinion, spindles and bearing rings for the auto sector. RKFL has six manufacturing facilities in India and has a total installed capacity of 187,100 tonnes.
With the government’s focus on railway capital expenditure, evident from the higher capex allocated to the sector, is likely to benefit companies like railway wagon manufacturer Titagarh Wagons and Ramkrishna Forgings which is a supplier to sectors like automotive, railways, farm equipment, bearings, oil and gas, power and construction, earth moving and mining, both in India and overseas markets.
Read all the Latest Business News here