Smallcap rail stock hit 5% upper circuit on winning orders from Indian Railways

Oriental Rail Infrastructure shares hit a 5% upper circuit and a new 52-week high at Rs 378.5 in Thursday's trade on BSE after the company received an order from Indian Railways.

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"We wish to inform you that Oriental Rail Infrastructure Limited has secured orders worth Rs 19,33,83,382.04 from Rail Coach Factory (RCF), Kapurthala, Indian Railways," the firm said in an exchange filing.

95% of the contract value will be paid upon receipt of an inspection certificate from the nominated agency and proof of dispatch or delivery of the material. The remaining 5% will be paid after the goods are received, inspected, and accepted.

The contract included the manufacturing and supply of 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 sheets for LHB AC3T coaches.

On a year-to-date basis, Oriental Rail Infrastructure surged 55%, while it has delivered multibagger returns to its investors as the stock has surged over 530% returns in the past year.

In technical terms, the relative strength index (RSI) of the stock is currently at 81.3. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. Additionally, the MACD is at 9.9, which is above its center and signal Line, this is a bullish indicator.

Moreover, the stock price is higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, further reinforcing the positive momentum.

As per the shareholding pattern available on Trendlyne, foreign institutional investors held a 0.02% stake in the company as of the March quarter of FY24, while the promoters held 54.81%.

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