Indo-National soars 20% as arm wins Rs 113 cr order for Vande Bharat trains

Shares of Indo-National were locked in the 20 per cent upper circuit at Rs 409.95 on the BSE in Monday’s intra-day trade after the company’s subsidiary Kineco bagged an order worth Rs 113 crore from Integral Coach Factory (ICF), Chennai.

The order is for the supply and installation of modular interiors for Vande Bharat semi-high speed trains (originally called Train 18).

The stock bounced 25 per cent from its intra-day low of Rs 328.60 on the BSE. The average trading volumes on the counter jumped multiple-fold with a combined 140,000 equity shares having changed hands so far. There were pending buy orders for around 61,000 shares on the NSE and BSE, the exchange data showed.

Meanwhile, in the past one year, the stock of Indo-National has underperformed the market by falling 22 per cent, as compared to a 0.36 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 558 on December 28, 2021.

Goa-based Kineco is one of India’s leading composite technology provider. Kineco, along with its subsidiaries, is engaged in the business of composites and aerospaces.

Kineco’s railway division has been supplying composite products to Indian Railways for more than fifteen years, with several innovative product developments to its credit.

The railway product portfolio includes rail coach interiors, toilet modules, aerodynamic front ends & driver cab interiors and hard seating systems. Kineco has a strong presence in the segment of ‘Design to Build’ turnkey railway interior projects for new and refurbished coaches and currently is among few players in India qualified for such projects.

These orders with its already strong order book will catapult Kineco to become one of India’s largest train interior supplier, the company said in a statement.

Meanwhile, along with the implementation of BIS standards for batteries, and the strict implementation of GST with every passing year, the organised players will have an increased opportunity.

Indo-National has implemented a few cost-saving initiatives without affecting productivity or future growth in order to manage the increasing import costs and to maintain a respectable profit margin. The widening of the distribution and covering of the new channels for non-battery business will also allow additional window of opportunity for batteries, the company said in its FY22 annual report.

In order to reinforce and accelerate the growth of non-battery categories, the company is now launching more SKUs within the existing categories. The company is also thinking of adding a few additional categories to enhance its distribution and brand, the company said.

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