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Business News/ Markets / Stock Markets/  Titagarh Rail Systems share price hits 52-week high on partnership with ABB for metro projects in India
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Titagarh Rail Systems share price hits 52-week high on partnership with ABB for metro projects in India

Titagarh Rail Systems share price jumps over 11% as it enters strategic partnership with ABB for metro projects in India. Technical analysts predict positive trend for Titagarh Rail Systems stock with good volumes supporting the upmove.

Titagarh Rail Systems Limited share price opened at ₹960 apiece on BSE. Premium
Titagarh Rail Systems Limited share price opened at 960 apiece on BSE.

Titagarh Rail Systems share price jumped over 11% to touch a 52-week high on Tuesday's trade on BSE, following the announcement that Titagarh Rail Systems has entered into a strategic partnership with ABB for metro projects in India. Titagarh Rail Systems Limited share price opened at 960 apiece on BSE. Titagarh Rail System stock price touched an intraday low at 959.85 apiece.

According to technical analysts, the broader trend for the Titagarh Rail System stock is positive. The price upmove has been supported by good volumes and hence, the upmove could continue. The support for the stock is now placed around 900.

“Last week stock prices witnessed strong traction and after yesterday's pause, the momentum has resumed today with prices up more than 11% , this uptrend is likely to continue with expected next resistance around 1,230. Any dip or consolidation can be considered as a buying opportunity. Immediate support is seen around 940," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

Also Read: Titagarh Rail Systems share price Today Live Updates : Titagarh Rail Systems sees stock rise in trading today

Under the terms of the partnership, Titagarh will buy ABB propulsion systems, which include traction motors, auxiliary converters, traction converters, and TCMS software. Along with the full technology transfer of the GoA 4 (Driverless metro) TCMS software from ABB to Titagarh, it also entails obtaining the manufacturing rights and production licence for traction motors.

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With orders for propulsion equipment and TCMS for metro coaches placed in Gujarat, one of India's most industrialised states, the strategic partnership is already in action, the company said in an exchange filing.

“Working in partnership with ABB will enable Titagarh to participate fully in our government’s Atmanirbhar Bharat and Make in India initiatives. We have already set up manufacturing facilities for some of the items for the propulsion chain and are in the process of making it a wholistic solution. 

Also Read: Stocks to buy: IRCON, RITES, Titagarh Rail - three railway stocks with up to 30% upside

This agreement is a huge step towards developing in-house capabilities for our own TCMS, including driverless (Grade of Automation 4) TCMS, complete with the setup of a TCMS Laboratory and the development of the source codes, which is often referred to as the ‘brain of the train’ and is the most modern in the world. This development of local TCMS capabilities will enable us to further align with the governments vision of the Aatmanirbharta," said Umesh Chowdhary, Vice Chairman and Managing Director of Titagarh.

Titagarh Rail Systems Ltd, announced its July-September quarter results for fiscal 2023-24 (Q2FY24), reporting a growth of 46.4% in consolidated net profit at 70.59 crore, compared to 48.2 crore in the corresponding period last year.

The company, formerly known as Titagarh Wagons Ltd, reported revenue from operations in the second quarter of current fiscal at 935.45 crore, registering a growth of 54%, compared to 607.11 crore in the year-ago period.

Also Read: Titagarh Wagons-BHEL consortium inks 24,000 crore contract with Indian railways; check details

The company announced earlier in November that it is looking for a strategic partner for its shipbuilding, bridges and defence business and intends to raise up to 700 crore through a Qualified Institutions Placement (QIP).

The company stated in a regulatory filing that it will fund future growth initiatives and strengthen its position in its core businesses with the proceeds from the QIP.

Also Read: Titagarh Rail Systems Q2 Results: Net profit rises 46.4% to 70.5 crore, revenue up 54% YoY

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.

 

 

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Updated: 21 Nov 2023, 10:01 AM IST
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