Anyone with info on Oriental Rail Infrastructure Ltd financial results and price chart – Screener?
I used to track this company earlier and I found the management to be honest. The company supplies to indian railway. Their products are rexene covers of the seats, seat veneer, wagon, coupler and boogies. And they recently doubled their capacity boogie, wagon, coupler and rexene capacity.
At MCAP of 202 cr today and has open unexecuted order book of 500cr+ (as per latest investor presentation, it was 1900cr + in FY22 AR). The order book was even bigger but Indian railway cancelled some of their orders because of delay at their end (its a huge con ofc).
The industry is very competitive and last quarter they posted negative PAT. The credit report attributes this to high RM costs which are coming down and poor working capital cycle which I don’t think is going to get better given the increasing product range, order size and well its B2G.
The price has fallen significantly and is at levels of 2018 when the company used to do 1/3 sales of today.
I really didn’t find the answer to the question of why just the latest quarter had negative PAT?
If anybody can find an answer to this than this is a superb opportunity because the company can easily double the revenue from 300cr to 600+ in 2 years since the capex is complete and current unexecuted order book is sufficient for an year.
Disc: Tracking position (0.75% of portfolio). Looking to invest more.
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