Rail stocks extend gains on order flow; BEML zooms 30% in 10 days

Mumbai Metro
Shares of companies related to the railway sector were trading higher by up to 7% on the back of the order flow.

BEML, Texmaco Rail and Engineering, Titagarh Wagons and Commercial Engineers & Body Builders Company (CEBBCO) were up 2% to 7% on BSE. In comparison, the S&P BSE Sensex was down 0.49% at 36,306 points at 11:32 am.

BEML was up 7% at Rs 911, surging 30% in the past 10 trading days. The company on November 23, announced that it has bagged contract worth of Rs 30.15 billion from the Mumbai Metropolitan Region Development Authority (MMRDA) to supply rolling stock on Metro corridors 2A, 2B and 7.

According to media reports, BEML, the country's largest railway coach maker, has pitched for indigenisation of at least six rakes of bullet train coaches in collaboration with its Japanese partner Hitachi.

CEBBCO is locked in upper circuit for the fourth straight trading days, up 5% at Rs 25.90, also its 52-week high on BSE. The stock soared 38% in the past eight days from Rs 18.75, as compared to a 4% rise in S&P BSE Sensex.

Last week, the company bagged a development contract worth of Rs 1,523 million for manufacture and supply of wagons to Railway Stores (S), Ministry of Railways, Government of India. These wagons are BOXNHL type, designed to carry coal, steel, stones etc.

Titagarh Wagons was too up 5% at Rs 85, gaining 28% in the past eight trading days on bagging an over Rs 1,500 million from Indian Railways.

“The company has been awarded a contract for manufacture and supply of 5,058 wagons to Indian Railways, the bidding for which was conducted under the reverse auction method. These wagons are BOXN HL type, designed to carry coal, steel, stones etc. and the value of the order is Rs 1,561 million,” Titagarh Wagons said in a regulatory filing on December 10.

As per the contract, one-third quantity (1686 Wagons) is to be supplied within six months and to complete the supply of the full quantity of wagons before 28.02.2020, it added.

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