Hitachi Energy at new high on order win from railways, gains 11% in 3 days

The company has won orders worth over Rs 160 crore for its key electric components to support the electrification of the country's rail routes.

Shares of Hitachi Energy India hit a record high of Rs 2,949, up 4 per cent on Friday in an otherwise weak market after the company won orders worth over Rs 160 crore for its key electric components to support the electrification of the country’s rail routes. In comparison, the S&P BSE Sensex was down 0.82 per cent at 58,977 points at 11:14 am.

The stock has rallied 11 per cent in last three days and it has outperformed the market by surging 22 per cent in the past one month, as compared to a 5 per cent gain in the S&P BSE Sensex.

In the last six months, it has rallied 52 per cent, as against a 13 per cent rise in the benchmark index. Further, in one year, the stock gained 131 per cent,  as compared to a 19 per cent surge in the Sensex.

The government of India’s electric locomotive manufacturers, Chittaranjan Locomotive Works (CLW) and Diesel Loco Modernisation Works (DMW), part of Indian Railways, placed orders with Hitachi Energy for traction transformers for passenger and freight locomotives in the December quarter, it said on Wednesday. 

As the operator of the world’s fourth largest railway network, Indian Railways strives to achieve 100 percent electrification of broad-gauge routes by 2023. The electrification of rail is a key element of India’s drive towards net zero carbon emissions, it said.

Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. In India Hitachi Energy operates under the legal entity name Hitachi Energy India (formerly known as ABB Power Products and Systems India Limited).

Traction transformers are critical components in the traction chain that affect both train performance and operator services. More than half the world’s electric locomotives and train sets are powered by Hitachi Energy transformers.