Railway stock jumps 9% after securing order from Rail Coach Factory

Published 19-02-2025, 02:37 pm
Updated 19-02-2025, 05:46 pm
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This small-cap railway stock engaged in manufacturing and supplying railway components, including coach seats to Indian Railways, jumped 9 percent after securing an order worth Rs. 3 crore from Rail Coach (NYSE:TPR) Factory (RCF).

Stock Price Movement

With a market capitalization of Rs. 1,199.29 crores, the share of Oriental Rail Infrastructure Ltd (BO:ORIF) has reached an intraday high of Rs. 198.75 per equity share, rising nearly around 8.61 percent from its previous day’s close price of Rs. 183. Since then, the stock has retreated and is currently trading at Rs. 193.25 per equity share.

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What Happened

Oriental Rail Infrastructure Limited has secured an order worth Rs. 3.08 crore from Rail Coach Factory (RCF), Kapurthala, Indian Railways. The company will manufacture and supply 37 sets of seats for LHB GS Amrit Bharat Coaches, with delivery scheduled by July 25, 2025.

RCF will release 95 percent of payment upon inspection and dispatch, while the remaining 5 percent will be paid after final acceptance. This order strengthens Oriental Rail Infrastructure’s position in railway manufacturing and reinforces its commitment to quality and timely delivery.

Future Expansion Programs

Oriental Rail Infrastructure Limited is focusing on major expansion plans to strengthen its presence in the Indian rail industry. The company aims to double its wagon production to 4,800 units annually and build a high-precision bogie spring facility in Kutch.

The company is also developing smart wagons with real-time tracking, targeting a 25 percent market share in India’s freight wagon market. Additionally, the ORVIN Artificial Leather initiative will create eco-friendly materials for various industries.

Clientele

Oriental Rail Infrastructure Limited has served a prestigious clientele including Indian Railways, CONCOR, Northern Railway, ICF, MCF, Rail Wheel Factory, SRBWIPL, BHEL, Braithwaite & Co. Limited (a Government of India undertaking under the Ministry of Railways), and Jindal Rail Infrastructure, establishing itself as a trusted partner in India’s railway ecosystem.

Recent quarter results

Oriental Rail Infrastructure Limited’s revenue has increased from Rs. 146.58 crore in Q3 FY24 to Rs. 152.82 crore in Q3 FY25, which has grown by 4.26 percent. The net profit dropped by 39.89 percent from Rs. 12.51 crore in Q3 FY24 to Rs. 7.52 crore in Q3 FY25.

Written By – Nikhil Naik

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