BHEL, Titagarh Rail consortium bags contract for Vande Bharat trains; stocks rally

BHEL share price NSE, Titagarh Rail systems share price NSE: State-owned Bharat Heavy Electricals (BHEL) and manufacturer of railway wagons Titagarh Rail System (TRSL) shares were in demand on Friday after a consortium of TRSL and BHEL inked a contract with Indian Railways for the manufacturing of 80 Vande Bharat sleeper trains.

BHEL share price NSE, Titagarh Rail systems share price NSE: State-owned BHEL and manufacturer of railway wagons TRSL shares were in demand on Friday. Image: https://twitter.com/BEL_CorpCom

BHEL share price NSE, Titagarh Rail systems share price NSE: State-owned Bharat Heavy Electricals (BHEL) and manufacturer of railway wagons Titagarh Rail System (TRSL) shares were in demand on Friday after a consortium of TRSL and BHEL inked a contract with Indian Railways for the manufacturing of 80 Vande Bharat sleeper trains. BHEL's stock opened at Rs 86 and gained as much as over 3 per cent to touch the day's high of Rs 87.35 from the previous close of Rs 84.55 on the NSE. BHEL shares finished up 2.9 per cent at Rs 87 apiece on NSE.

Shares of Titagarh Rail Systems, trading under the name of Titagarh Wagons on the NSE, opened at Rs 428 and gained as much as over 4 per cent to touch the day's high of Rs 434.4 from the previous close of Rs 416.15 on the NSE. Titagarh Rail Systems shares finished up 2.41 per cent at Rs 426.2 apiece on NSE.

In a joint statement, the companies said, "Titagarh Rail Systems and Bharat Heavy Electricals consortium inks a contract with Indian Railways for manufacturing 80 Vande Bharat sleeper train sets by 2029. The estimated value of the contract is Rs 24,000 crore." This is the first time Indian Railways has awarded a contract of this value to an Indian consortium for the design and manufacturing of complete train sets and maintenance for 35 years, it further said.

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The TRSL-BHEL consortium was the only AatmaNirbhar consortium that participated in the tender process. "We are committed to becoming a modest contributor to the Prime Minister's Aatma Nirbhar vision. Vande Bharat trains have revolutionised the way we travel, and we are proud to be a part of the government's Make in India initiative. The order shall be carried out over a span of six years, wherein the first prototype shall be delivered within a two-year timeframe, after which the remaining deliveries will take place," TRSL's Vice Chairman and MD Umesh Chowdhary said.

The final assembly, testing, and commissioning of the Vande Bharat sleeper trains will be done at the Indian Railway's facilities in Chennai. The statement added that there will be 16 coaches in each train, with an approximate capacity to accommodate 887 passengers in total. The train will be designed to achieve speeds of 160 kilometres per hour (kmph).

BHEL share price history, Titagarh Rail systems share price history

In the last 12 months (since June 16, 2022), BHEL's stock has given a positive return of nearly 88 per cent whereas TRSL's stock has given a multi-bagger return of over 320 per cent. In comparison, the headline index Nifty 50, has rallied over 22 per cent.

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