Indian Railway contracts will benefit Titagarh: Umesh Chawdhary, Titagarh

Umesh Chowdhary, VC and MD, Titagarh Wagons commented, “The biggest suffering that we have had in the last five-seven years in the railways is the lack of decision making and USD 7 billion contract getting signed just shows that there is a complete reversal of mind sets from in decision to quick decision making”.

The Indian Railways recently signed two contracts for a combined value of around Rs. 45000 crore for a total of 1800 freight locomotives. According to Umesh Chowdhary, VC and MD of Titagarh Wagons, these two contracts will definitely benefit Titagarh, as for each locomotive that IR buys, it has to buy hundreds of wagons.

Speaking to CNBC TV 18, he said although the government is still on hold to publish the tender for wagons, the second tender will surely require more than 5000-6000 wagons. 

“The biggest suffering that we have had in the last five-seven years in the railways is the lack of decision making and USD 7 billion contract getting signed just shows that there is a complete reversal of mind sets from in decision to quick decision making,” he said.

Stock View

Titagarh Wagons Ltd is currently trading at Rs. 144.8, down by Rs. 4.9 or 3.27% from its previous closing of Rs. 149.7 on the BSE.

The scrip opened at Rs. 150.8 and has touched a high and low of Rs. 152.4 and Rs. 143.35 respectively. So far 1647151(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1727.3 crore.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 174.6 on 10-Mar-2015 and a 52 week low of Rs. 47.52 on 17-Dec-2014. Last one week high and low of the scrip stood at Rs. 154 and Rs. 124.5 respectively.

The promoters holding in the company stood at 46.11 % while Institutions and Non-Institutions held 25.62 % and 28.27 % respectively.

The stock is currently trading below its 50 DMA.