Last Updated: November 21, 2023, 12:32 IST
Titagarh Rail Systems Share Price: Shares of Titagarh Rail Systems hit a fresh high of Rs 1,045 as they surged 12 per cent on the BSE in Tuesday’s intraday trade on the back of heavy volumes, after the company and ABB formed a strategic partnership to supply propulsion systems for metro rolling stock projects in India.
Seen as a play on the capex upcyle in India and railways modernisation plan, the smallcap stock has rallied over 500 per cent in the last one year.
In the past three trading days, the stock of the railway wagons company has rallied 25 per cent. Further, thus far in the current calendar year 2023, the stock has zoomed nearly 370 per cent as compared to 7.7 per cent rise in the S&P BSE Sensex.
In an exchange filing, Titagarh Rail said the partnership, aligned with the Indian government’s “Make in India” and “Atmanirbhar Bharat” (self-reliant India) initiatives, has already had an early success by winning orders to design and supply equipment for metro coaches for the state of Gujarat.
The new partnership with ABB covers an agreement for Titagarh to purchase ABB propulsion systems including traction converters, auxiliary converters, traction motors and TCMS software.
It also includes securing the manufacturing rights and production license for traction motors along with the complete transfer of technology of the GoA 4 (Driverless metro) TCMS software from ABB to Titagarh.
“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 holistic solution. 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,” said Titagarh MD Umesh Chowd ..
Titagarh is the largest private sector manufacturer of railway wagons and an established player in passenger coaches. The company has been awarded the largest ever order for wagons by Indian Railways in addition to the orders for the manufacture and supply of Metro Trains for Pune, Bengaluru, Ahmedabad and Surat Metro projects.