Rail wagon makers surge upto 12% as government releases order

MUMBAI: Shares of wagon makers such as Texmaco Rail, Titagarh Wagons and CIMMCO surged in trade after the Modi government released its first order for wagons after coming to power.

The UPA government, in the month of April, had allocated wagons to individual manufacturers. These companies were told to supply 50 per cent of wagons and the balance was withheld to be issued at a later date.

The Railways board has now placed orders for the remaining 50 per cent of allocated wagon. Texmaco was allocated 2,400 wagons in April. The company will now have to supply 1,200 wagons.

Titagarh Wagons has been issued order for balance 385 wagons, of 769 units allocated to it.

CIMMCO was allocated 498 wagons and it will now have to supply remainder of 249 wagons

Umesh Chowdhary, VC & MD, Titagarh Wagons, in an interview to ET Now told the current total orderbook stands at Rs 700 crore. He expects to see more order inflow going ahead.

The company will execute new orders in next one-year.

At 11:30 a.m.; CIMMCO was at Rs 53.50, up 8.96 per cent, on the BSE. It rallied 12.01 per cent to touch intraday high of Rs 55.

Titagarh Wagons was at Rs 321.30, up 7.73 per cent, on the BSE. It rallied 10.27 per cent to touch intraday high of Rs 328.90.

Texmaco Rail was at Rs 122.15, up 4.49 per cent, on the BSE. It advanced 6.07 per cent to touch intraday high of Rs 124.