Indian Railways’ ₹ 98 Cr order, Mukul Agrawal’s stock rises by 4%. This small-cap company’s shares increased by almost 4% during Monday’s trading session following the receipt of an order from the Indian Railways for Rs. 98 crores. In only a single year, the stock has given its stockholders a return of almost 150 percent.
With a market value of Rs. 1,561 crores, Hind Rectifiers Ltd.’s shares opened Monday’s trading session at Rs. 904.95, up from its previous close of Rs. 868.90. The shares are now trading at Rs. 901 apiece after reaching a high of Rs. 912 during the trading session and rising by almost 4%.
The business disclosed in an exchange filing that it has obtained supply orders from Indian Railways for over Rs. 98 crores, which sparked such a positive increase in the share price. This contract is anticipated to be completed by the 2025–2026 fiscal year.
At Rs. 867 crores, the firm has the largest backlog of pending orders in its history as of September 28, 2024.
For the fiscal year 2023–2024, the firm recorded significant financial measures such as a return on equity of 10.04 percent and a return on capital employed of 23.65 percent. Furthermore, at the same period, the net profit margin was 2.41 percent.
The foundation of Hind Rectifiers’ operations has always been Indian Railways, which supplies a steady stream of income through contracts for a variety of electrical parts used in coaches and locomotives. The company’s dedication to quality and innovation in railway technology has strengthened its long-standing connection with Indian Railways.
Hind Rectifiers is also spending money on R&D to produce cutting-edge goods specifically for private rolling stock producers.
This entails adjusting to more recent designs and technology that satisfy the changing requirements of the railroad industry. One example of this is the Distributed Power Rolling Stock (DPRS) systems found in contemporary trains like the Vande Bharat Express.
Hind Rectifiers is expanding its market share in the industrial sector in addition to railway applications. This entails modernizing current product lines and creating fresh approaches that serve a range of markets, such as aerospace, defense, and power generation. Additionally, the business has registered with defense groups and received certificates for aeronautical requirements.
According to sources, the business hopes to attain about Rs. 600 crores in sales for FY25, with a 20 percent revenue increase supported by new orders.
Additionally, the management has high hopes for increasing operational savings, which might result in margins growing into the double digits as they make the most of their current product lines without immediately requiring new space.
Ace Investor Mr. Mukul Agrwal, who started investing in the stock in March 2024, presently owns 2.23 lakh equity shares, or 1.30 percent of the firm, according to BSE statistics. His investment currently has a holding value of Rs. 20.1 crores.
Founded in April 1958, the main activities of Hind Rectifiers Ltd. are the development, design, production, and sale of Power semiconductors, Power Electronic equipment, and equipment for railway transportation.
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