Up 560% in a year: Oriental Rail Infra stock hits 5% upper circuit on ₹19.3 cr order

Oriental Rail Infrastructure's shares surged by 5% to 379 after winning a 19.33 crore contract from Indian Railways. The company, with a 32-year history, specializes in manufacturing a diverse range of products for various industries, including seats, berths, and railway rolling stock.

A Ksheerasagar
First Published11 Jul 2024, 10:12 AM IST
Indian Railways, Rail, Trains, Train, Railway Track, photo by Rajkumar on 22 June 2009
Indian Railways, Rail, Trains, Train, Railway Track, photo by Rajkumar on 22 June 2009

Oriental Rail Infrastructure saw its shares hit the 5% upper circuit limit in early morning trading today, soaring to a new all-time high 379 per share following the announcement of contract win from Indian Railways.

In an exchange filing on Wednesday, the company disclosed securing an order valued at 19.33 crore. The order entails manufacturing and supplying 194 sets of seats for LHB GS coaches, 96 sets of seats and berths for LHB SCN coaches, and 29 sets of seats and berths with MS corrugated sheet for LHB AC3T coaches from Rail Coach Factory (RCF), Kapurthala, Indian Railways. The delivery of these orders is scheduled to be completed within the next 11 months.

Also Read | Focus on defence, rail, infra stocks ahead of Budget, says Atul Parekh of Bigul

The company, with a 32-year history, specializes in manufacturing and supplying a diverse range of products for Indian railways and various other industries. Through its wholly owned subsidiary, Oriental Foundry Private Limited (OFPL), established on July 25, 2014, it is a major producer of heavy engineering equipment such as railway rolling stock, including wagons, bogies, couplers, and draft gears.

Additionally, the company manufactures and supplies products like seats and berths, densified thermal bonded blocks (DTBB), compreg board and allied products, ORVIN, Recorn, coated upholstery fabric, furniture and parts, plywood, phenolic resin, hardener, and rubber flooring, catering to multiple sectors including consumer markets, automobiles, and global exports.

Also Read | Budget 2024: Infra thrust to push railways’ capex; IRCON, NBCC among top picks

It has recently modernized its artificial leather (Rexene) plant, doubling its production capacity from 24 lakh meters to 48 lakh meters annually. This enhancement supports the company's strategy to capture broader market segments and bolster its competitive position.

Furthermore, ORIL is actively investing in a new manufacturing facility and expanding production capacities at existing plants. The company remains committed to product innovation and upgrading existing offerings to meet evolving market demands and maintain its leadership in the industry, according to the company's FY23 annual report.

The turnover from Seat & Berth, which accounts for 80% of the company's revenues, stood at 104 crore in FY23. Upcoming new coaches in the future will increase the requirement for seats and berths, which will double the supply. ORIL enjoys over 30% market share in seats & berths, as per the company's annual report.

Also Read | Multibagger: Voltas rockets 80% in 8 months, delivers over 170% returns in 4 years

Meanwhile, the company's shares over the last year jumped 563%, and in the last 3 years, they delivered a return of 639%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess

News in Numbers

Numbers that help you understand news better
$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:11 Jul 2024, 10:12 AM IST
HomeMarketsStock MarketsUp 560% in a year: Oriental Rail Infra stock hits 5% upper circuit on ₹19.3 cr order

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,263.00176.00
    Chennai
    74,699.00757.00
    Delhi
    74,989.00975.00
    Kolkata
    74,190.00-187.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.10
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts