Hind Rectifiers stock locked at 5% upper circuit on Rs 200 crore order from Indian Railways

Hind Rectifiers is set to benefit from the government's infrastructure development plans and various power sector projects.

Shares of Hind Rectifiers surged 5 percent to hit the upper circuit on September 23 after the company secured a supply order worth over Rs 200 crore from Indian Railways. The order will be executed by FY26, according to the terms and conditions outlined by Indian Railways, Hind Rectifiers said in a regulatory filing.

Hind Rectifiers clarified that there is no involvement or interest from the promoter group or group companies in the entity awarding the contract. Additionally, the transaction does not qualify as a related party transaction.

Founded in April 1958, the company specialises in the development, design, manufacturing and marketing of power semiconductors, electronic equipment, and railway transportation equipment.

At 12:33 pm, Hind Rectifiers shares were locked at the upper ciruit to trade at Rs 858.95 on NSE. The stock has rallied 63 percent so far this year, outperforming Nifty's returns of 19 percent. In the past 12 months, the counter has risen 146 percent more than doubling investors' capital. In comparison, Nifty rose 31 percent during this period.

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Indian Railways remains Hind Rectifiers' largest customer, driven by its strong reputation and advanced technology in locomotives and coaches. However, the company is diversifying its focus, developing new products for private rolling stock manufacturers and expanding into the industrial sector by enhancing its existing product lines.

Hind Rectifiers is set to benefit from the government's infrastructure development plans and various power sector projects. The company is also expanding into the defence and aerospace sectors, having secured certifications for aerospace standards and registered with defence organisations, which are expected to generate additional revenue in the coming years.

For the quarter ended June 2024, Hind Rectifiers' net income increased 38 percent on-year to Rs 136.03 crore, and its net profit surged 266 percent YoY to Rs 6.92 crore. The company announced a dividend of Rs 1.20 per equity share with a face value of Rs 2 for FY24. This dividend was to be paid to shareholders as of the close of business on July 25.

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