Texmaco Rail rallies over 8% as consortium wins Rs 1,800 crore order

NEW DELHI: Adventz group firm Texmaco Rail & Engineering climbed over 8 per cent in Friday’s trade after it told stock exchanges that its consortium of four companies has bagged a long-term order for design and construction of railway signals and telecom equipment installation, amounting to Rs 1,800 crore.

Japan’s Hitachi is leading the consortium; Hitachi India and Mitsui & co are the other two members of the consortium.

The company made the announcement post market hours of Thursday.

The stock surged 8.46 per cent to hit a high of Rs 149.90 on the BSE. Friday’s gains helped the stock climb over 48 per cent from its August lows of Rs 101.

By 9.45 am, a total of 1.09 lakh shares changed hands on the counter, compared with a two-week average of 69,000 shares on the exchange.

The order covers 915 km distance between Rewari (Haryana) and Vadodara (Gujarat).

Hitachi Japan will manufacture key equipment; Mitsui will coordinate with DFCCIL and related agencies in Japan and India, while Texmaco and Hitachi India will supply domestic equipment. The Saroj Poddar-led firm will also carry out the installation process.

The company’s net sales for FY15 stood at Rs 438 crore, net profit at Rs 13.74, which net profit margins were just above 3 per cent.