Oriental Rail Infrastructure saw its shares hit the 5% upper circuit limit in early morning trading today, soaring to a new all-time high ₹379 per share following the announcement of contract win from Indian Railways.

In an exchange filing on Wednesday, the company disclosed securing an order valued at ₹19.33 crore. The order entails manufacturing and supplying 194 sets of seats for LHB GS coaches, 96 sets of seats and berths for LHB SCN coaches, and 29 sets of seats and berths with MS corrugated sheet for LHB AC3T coaches from Rail Coach Factory (RCF), Kapurthala, Indian Railways. The delivery of these orders is scheduled to be completed within the next 11 months.

The company, with a 32-year history, specializes in manufacturing and supplying a diverse range of products for Indian railways and various other industries. Through its wholly owned subsidiary, Oriental Foundry Private Limited (OFPL), established on July 25, 2014, it is a major producer of heavy engineering equipment such as railway rolling stock, including wagons, bogies, couplers, and draft gears.

Additionally, the company manufactures and supplies products like seats and berths, densified thermal bonded blocks (DTBB), compreg board and allied products, ORVIN, Recorn, coated upholstery fabric, furniture and parts, plywood, phenolic resin, hardener, and rubber flooring, catering to multiple sectors including consumer markets, automobiles, and global exports.

It has recently modernized its artificial leather (Rexene) plant, doubling its production capacity from 24 lakh meters to 48 lakh meters annually. This enhancement supports the company’s strategy to capture broader market segments and bolster its competitive position.

Furthermore, ORIL is actively investing in a new manufacturing facility and expanding production capacities at existing plants. The company remains committed to product innovation and upgrading existing offerings to meet evolving market demands and maintain its leadership in the industry, according to the company’s FY23 annual report.

The turnover from Seat & Berth, which accounts for 80% of the company’s revenues, stood at ₹104 crore in FY23. Upcoming new coaches in the future will increase the requirement for seats and berths, which will double the supply. ORIL enjoys over 30% market share in seats & berths, as per the company’s annual report.

Meanwhile, the company’s shares over the last year jumped 563%, and in the last 3 years, they delivered a return of 639%.

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