Last updated: Nov 21, 2023 12:32 IST
Titagarh Rail Systems share price: Shares of Titagarh Rail Systems hit a new high of Rs 1,045 while rising 12 percent on the BSE in intraday trade on Tuesday on 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 response to India’s investment cycle and the railway modernization plan, small cap stocks have risen more than 500 percent in the past year.
Over the past three trading days, shares of the railcar company have risen 25 percent. Further, the stock has risen nearly 370 percent year to date in the current calendar year 2023, compared to a 7.7 percent rise in the S&P BSE Sensex.
In an exchange filing, Titagarh Rail said that in line with the Government of India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India) initiatives, the partnership has seen early success by securing orders to design and supply metro infrastructure equipment. coaches for the state of Gujarat.
The new partnership with ABB includes 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 manufacturing license for traction motors along with complete technology transfer of ABB’s GoA 4 (Driverless metro) TCMS software to Titagarh.
“We have already set up production facilities for a number of items for the propulsion chain and are in the process of turning it into a holistic solution. This agreement is a huge step towards developing in-house capabilities for our proprietary TCMS, including driverless (Grade of Automation 4) TCMS, complete with the setup of a TCMS laboratory and the development of the source codes, which are often referenced as the ‘brain of the train’ and is the most modern in the world,” says Titagarh MD Umesh Chowd.
Titagarh is the largest manufacturer of railway wagons in the private sector and an established player in the passenger coach sector. The company has received its largest ever order for wagons from Indian Railways, in addition to orders for manufacturing and supplying metro trains for the Pune, Bengaluru, Ahmedabad and Surat metro projects.