Mumbai: Railway wagon manufacturer Titagarh Wagons announced new order win by its Italian subsidiary worth about Rs 1,740.60 crore for design, manufacture and supply of 54 units for Italy Metro train network cheering shareholders of the company.
Titagarh Wagons fresh order is almost three times its current market cap of Rs 678.15 crore on BSE.
After the new order win announcement the stock rose more than 6 per cent in trade on Monday and finally closed 5.20 per cent up at Rs 58.70 on the BSE.
Titagarh Wagons in a statement to the stock exchanges said, “Titagarh Firema SPA, the wholly owned subsidiary of the company in Italy, has been awarded the ‘Letter of Acceptance’ for design, manufacture and supply of 54 units of Metro for Ferrovia Circumetnea, Italy. The total value of the LoA is Euro 216 million (Euro Two hundred sixteen million only), equivalent to INR 1740.60 crore approximately.”
Kolkata based Titagarh Wagons is largest private sector company manufacturing coaches for the Indian railways, bailey bridges, and mining equipment. Titagarh Wagons’ subsidiary Titagarh Firema SPA, Italy a wholly owned subsidiary of Titagarh Wagons is in to design and manufacture of passenger rolling stock.
“The order book of the Italian subsidiary of Titagarh Wagons after including the above order stands at Euro 320 million, equivalent to Rs 2,578.56 crore approximately,” the company informed stock exchanges.
Umesh Mehta, head of Research, Samco Securities, said, “New order of Rs 1,740 crore for Italy metro could be a likely turnaround story going forward as the order book is thrice its market cap and the debt is also well contained.”