Shares of Titagarh Rail Systems hit a new high of Rs 1,045 as they surged 12 per cent on the BSE in Tuesday's intraday trade on the back of heavy volumes, after the company and ABB formed a strategic partnership to supply propulsion systems for metro rolling stock projects in India.
In the past three trading days, the stock of the railway wagons company has rallied 25 per cent. Further, thus far in the current calendar year 2023, the stock has zoomed nearly 370 per cent as compared to 7.7 per cent rise in the S&P BSE Sensex.
In an exchange filing, Titagarh Rail said the partnership, aligned with the Indian government's "Make in India" and "Atmanirbhar Bharat" (self-reliant India) initiatives, has already had an early success by winning orders to design and supply equipment for metro coaches for the state of Gujarat.
The current partnership covers an agreement for Titagarh to purchase ABB propulsion systems, including traction converters, auxiliary converters, traction motors and TCMS software. It also includes securing the manufacturing rights and production license for traction motors along with the complete transfer of technology of the GoA 4 (Driverless metro) TCMS software from ABB to Titagarh.
Titagarh specialises in the design, manufacture, supply, commissioning, and servicing of various passenger rolling stock, and metro coaches for Indian and international markets. ABB, meanwhile, is a world leader in the field of the design, manufacture and servicing of propulsion systems, and electrical equipment relating to rolling stock used for railways and metro systems.
The strategic partnership brings the two companies together to build on their potential and synergy to become an established player in the Indian market and expand its market base to other projects and countries, the company said.
Separately, Titagarh Rail has been awarded the largest-ever order for wagons by Indian Railways in addition to the orders for the manufacture and supply of Metro Trains for Pune, Bangaluru, Ahmedabad, and Surat Metro projects.
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As on September 30, 2023, Titagarh Rail had order book position of Rs 28,212 crore. Of these, Rs 14,342 crore orders were from the freight rolling stocks, and Rs 13,870 crore orders from passenger rolling stocks segment.