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Mamuni Das
K.S. Badri Narayanan

Targets Rs 300-crore turnover this fiscal

New Delhi/Chennai June 8 The stock of Kalindee Rail Nirman Engineers has been gaining strongly on the bourses in the last couple of days on order buzz.

The BSE-listed stock hit a new high of Rs 246 today but closed at Rs 224.20 against Thursday's close of Rs 216.90.

Trading volumes also surged; from 2.19 lakh shares on Thursday to 6.03 lakh shares on Friday.

The company, with expertise in rail track laying and signalling, recently bagged a Rs 90-crore project from Delhi Metro Rail Corporation (DMRC) to construct about 33 km of track in phase II expansion.

"We have an order book of about Rs 500 crore, including the order from Delhi Metro," Mr Arvind Gemini, Director (Business Development), told Business Line.

The company is targeting Rs 300-crore turnover for 2007-08.

Mr Gemini also said that the firm is in race for 2-3 projects and plans to bid for a similar number of projects over the next quarter.

However, he refused to comment on the expected profit this year.

Most of the works of the Rs 500-crore order book are expected to be over by 2008, while some works would be over by December 2009, he added.

According to brokers, the formation of Railway Vikas Nigam Ltd in 2002 greatly helped the company in securing orders in an easier manner.

Overseas project

Besides, its thrust on overseas projects, particularly turnkey ones, has also buoyed the sentiment, the brokers said.

Mr Gemini said: "We are in talks with an Australian firm to execute a construction project in Saudi Arabia. The firm is looking at sub-contracting the work."

Kalindee Rail, which gets most of its works from the Railways, DMRC and Rail Vikas Nigam Ltd, has now started getting orders for building rail sidings for companies setting up steel and cement plants in Orissa.

"We are already doing projects for Vedanta and are in talks with Bhushan Steel and Tata Steel for their proposed plans," he said, adding that Kalindee is also building sidings for Dalmia Cement plant and Tata Projects (near Chennai).

The company manufactures and installs signalling and telecommunication equipment along with executing gauge conversion projects for the Railways.

According to a dealer with a Chennai-based brokerage, Railway Budget 2007-08 is generally positive for Railway equipment companies.

"With sizeable investments to be made in modernisation and expansion of capacity of the Railways, we expect healthy order flow for companies in this field," he added.

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