Shares of Titagarh Wagons (TWL) hit a fresh high of Rs 343.75, surging 14% on BSE in intraday trade on Thursday amid heavy volume in an otherwise subdued market.

Shares of the rail wagon maker rose 11% to Rs 332.50 at 1:07 pm, while the S&P BSE Sensex fell 0.02%. The average trading volume over the counter jumped more than three-fold today, with 6.3 million shares representing 5.3% of TWL’s total share capital, which has changed hands on the NSE and BSE in transactions so far.

The stock has rallied 58% in the past two months after the company reported a 71% year-over-year revenue increase and 10% operating margin for the first nine months of fiscal 2023 (9MFY23), driven by improved order execution. The company secured a major order for the wagon segment from Indian Railways (IR) in May 2022 and, as expected, a major order from Pune Metro.

Last week, TWL announced that its consortium with Bharat Heavy Electricals Ltd (BHEL) (BHEL-TWL Consortium) had secured an order worth Rs 9,600 crore to supply IR with 80 sleeper class Vande Bharat trains over the next six years.

Annual maintenance contract (AMC) orders have also been placed for 35 years. The order is for 80 trains worth Rs 120 crore each, excluding taxes and duties. The consortium will also equip, upgrade, operate and maintain the ICF Chennai manufacturing unit and the dedicated premises provided in the two depots designated by Indian Railways.

Earlier, a consortium of Ramkrishna Forgings and TWL (RKFL-TWL Consortium) received a Letter of Acceptance (LoA) from the Ministry of Railways to manufacture and supply forged wheels under a long-term agreement with Aatma Nirbhar Bharat.

The company said the contract size is Rs 12,226 crore to manufacture and supply 1.54 million forged wheels of various rolling stock to the Ministry of Railways for 20 years under the terms and conditions of the agreement.

Under the government’s Aatma Nirbhar Bharat initiative, Indian Railways has been focused on pursuing growth, emphasising the Make in India policy. TWL, through its prominence in passenger and freight rolling stock, provides mobility solutions to billions of people. TWL is the largest privately-owned manufacturer of wagons and a well-known player in the field of railway passenger cars (EMU, MEMU).

During 9MFY23, TWL’s operating profit before depreciation, interest and tax (OPBDIT) rose to Rs 169 crore from Rs 116 crore in the corresponding period of the previous financial year. Operating margin fell to 9.4% from 11%, in line with expectations, due to a higher proportion of low-margin orders in the freight division.