The shares of Magellanic Cloud dropped 20 percent to hit the lower circuit at Rs 36.96 apiece on November 26. The stock has now fallen more than 28 percent in just two days.
The sharp fall in the share price incidentally comes even after the company reported a new order win on Monday.
Magellanic Cloud's order win from East Coast Railway:
Magellanic Cloud on November 24 announced that it has received a Letter of Acceptance (LoA) from East Coast Railway for the supply, installation and commissioning of crew voice, and video recording system (CVVRS) for electric locomotives.
The company said that the contract had a total value of Rs 6 crore, and is expected to be executed within three years. “This project will contribute in enhancing operational safety, improving investigation efficiency, and boosting crew performance accountability across the railway network,” it said.
Magellanic Cloud said that the order win confirms its established expertise in carrying out extensive operational oversight mandates for important public infrastructure clients, including the rail network. It added that this success reinforces the firm’s leadership role in making “cutting-edge and sophisticated” train protection platforms.
Speaking about the latest order, Magellanic Cloud Global CEO and Managing Director Joseph Sudheer Reddy Thumma said, “The awarding of this significant procurement serves as undeniable testament to Provigil's exceptional proficiency and specialized capability in delivering sophisticated, safety-critical recording platforms at scale for the nation's rail network. This milestone propels Provigil’s commitment to supporting Railway’s operational mandate; we stand resolutely focused on pioneering future-ready railway technology and guaranteeing superior crew vigilance standards, thereby establishing a core foundation of enhanced, protected rail operations that benefits commuters and stakeholders across the region."
Magellanic Cloud share price history:
The shares of Magellanic Cloud have declined more than 45 percent in the past five days, and over 32 percent in the past one month.
After hitting an all-time low of Rs 42.49 apiece in March this year, the stock sharply rallied more than 148 percent in just four months to hit a lifetime high of Rs 105.42 apiece in July. The stock has now fallen around 65 percent since then.
The company has a market capitalization of Rs 2,160 crore. The stock’s P/E ratio stands at around 34.
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