Rail Stocks in focus; Titagarh Wagons hits 52-week high

Mumbai: Shares of rail related companies are trading higher on the bourses by up to 13% in otherwise in weak market on back of corporate announcements.

Titagarh Wagons (13% at Rs.828), Texmaco Rail & Engineering (6% at Rs.152), Stone India (5.5% at Rs.71), Kernex Microsystems (5% at Rs.44.45) and Kalindee Rail Nirman (3% at Rs.137) are up 3-12% on the BSE. The benchmark index, S&P BSE Sensex, was down 1.4% or 407 points at 29,043 at 1137 hours.

Among individual stocks, Titagarh Wagons has rallied 13% to Rs.828, extending its Thursday’s 22% surge in past four trading sessions on BSE. The stock opened at Rs.733 and touched a 52-week high of Rs 845 so far.

On March 4, 2015, Titagarh Wagons announced that its board approved sub-division of equity shares of Rs 10 each into equity shares of face value of Rs 2 each. A stock split, or sub-division of equity shares, is done to infuse liquidity and to make shares affordable for retail investors who could not invest earlier because of the high stock price.

The board has also approved in-principle, by passing an enabling resolution raising of funds through issuance of securities viz. equity or equity related instruments up to a maximum of Rs 250 crore subject to shareholders’ and other approvals, Titagarh Wagons said in a statement.

Kernex Microsystems is locked in upper circuit of 5% at Rs 44.45 after the company announced the proposal for sale/disposal of selected assets of the company to finance new projects and to provide additional capital to ongoing project. The board of directors of the company is schedule to meet tomorrow, March 10, 2015 to consider the same.