Shares of Quadrant Future Tek hit a new high of Rs 634, as they surged 18.2 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. The stock of electrical cables has more-than-doubled or zoomed 119 per cent against the issue price of Rs 290 per share. The company made its stock market debut on January 14, 2025.
At 12:24 PM; Quadrant Future Tek was trading 17.7 per cent higher at Rs 631.20, as compared to 0.95 per cent rise in the BSE Sensex. The average trading volumes at the counter more-than-doubled, with 6.07 lakh equity shares representing 15 per cent of total equity of the company changing hands on the NSE and BSE.
Quadrant is a research-focused company specialising in Train Control and Signalling Systems under the KAVACH project, enhancing safety and reliability for Indian Railways. It also manufactures specialty cables for railways, defence, and renewable energy, using advanced Electron Beam technology for superior performance. The company has received significant contracts for its KAVACH system and partners with RailTel to expand its deployment in India and abroad. Kavach is the most cost-effective Automatic Train Protection (ATP) system globally.
According to analysts at Elara Capital, Kavach is at the forefront given rising train accidents. Expect a sharp rise in approved vendors from three, led by low deployment (1,548rkm completed versus 68,584rkm), large order pipeline (bids for 15,000 kms in FY26; Kavach for 10,000 locos) and overall opportunity size at Rs 45,000 crore.
Rail infra is another focus area, with an opportunity size of Rs 4.5 trillion from network expansion (new lines: Rs 2.6 trillion, gauge conversion: Rs 30,000 crore, doubling: Rs 1.7 trillion), as 73 per cent of the outlay is still to be spent. Also, the three new economic rail corridors proposed may add 40,000kms of new lines in the next 8-10 years (60 per cent of rail’s current network), the brokerage firm said in the railway sector update.
Also Read
Meanwhile, among peers, Quadrant leads with an EBITDA margin of 24.1 per cent in FY24 and its return ratios are equally competitive. The industry forecast indicates a robust growth for the Indian Specialty Cable and Train Control System market projected to expand at a compound annual growth rate (CAGR) of 9.8 per cent and 12.7 per cent from CY24E-CY30E period.
Additionally, the strategic MoU signed with RailTel Corp. to provide KAVACH coupled with recent order win from Chittaranjan Locomotive Works (CLW) of Rs 978.6 crore, solidifies the company’s position as a premier Original Equipment Manufacturer (OEM), SBI Securities had said in the IPO note.
The growing demand for automated railway safety systems under the “Make in India” initiative and increasing applications for E-beam cables in renewable energy and EV sectors present significant growth opportunities. With its innovative solutions, robust financial performance, and focus on quality, Quadrant is well positioned for sustained growth and offers a promising investment opportunity, Ventura Securities said in its IPO note.