KR Rail Engineering's shares end the session in the upper circuit; here's why

*What distinguishes the company is its unique ability to provide a complete range of railway EPCC services all within a single entity in India?

Shares of KR Rail Engineering Limited showed a significant spike during the afternoon session today. It opened the day at Rs 808.95 per share, which was 3.3% up from the previous day’s closing price of Rs 783 per share on the BSE. During the day, it reached intraday highs and lows of Rs 822.35 and Rs 783.20, respectively.

During the afternoon session around 2:40 PM, the price surged and locked into the upper circuit limit of 5%, eventually ending today’s session at Rs 822.25 with no sellers willing to sell the shares, and even buyers were ready to buy at any cost.

Now you might be wondering what happened during the second half of the trading session that attracted investors significantly.

Well, let us tell you that the company has signed a significant MOU for the value of Rs 500 million dollars (Rs 4,000 crore as per the company), which is approximately 2.52 times more than the market capitalization of the company. The current market capitalization of the company stands at Rs 1,582 crore.

According to the official report, the company announced that it signed an MOU with Muktinath Darshan Private Limited yesterday for the construction of a Cable Car Project in the Gandaki Province of Nepal. Furthermore, the total length of the cable car project is about 84.32 kilometres.

Following this announcement, buyers rushed to buy the stocks, leading to heavy demand, and the stock locked into the upper circuit.

Turning your attention toward the historical performance of the company’s stock, it has generated an impressive return of 3,870% in the last three years. It has also delivered significant returns, nearly 2,900%, to those investors who bought the stock of the company a year ago.

Business Overview:

K&R Rail Engineering Limited, formerly known as Axis Rail India Limited, was established in 1998 with a vision to meet the increasing demand for mass transportation and bulk logistics of goods and materials within the Indian railway network. With nearly three decades of industry expertise and experience, the company has emerged as the leading conglomerate for railway Engineering, Procurement, Construction, and Commissioning (EPCC) in India.

The company consistently achieves an annual turnover exceeding Rs 100 Crores and has successfully completed significant projects, including major bridges, earthwork, and the supply of permanent way materials for esteemed clients on a turnkey basis. It also holds complete authorization from Railway Headquarters and Divisional Railway Authorities for railway infrastructure projects.

K&R Rail Engineering Limited serves some of India’s top industries, such as steel, aluminium, thermal and captive power, major ports, and cement factories, among others. What sets the company apart is its unique ability to provide a complete range of railway EPCC services all under one entity in India.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.