This railway stock on brokerage radar as coach tender activity gathers steam
Diwali celebrations have kicked off early for railway coach manufacturers as the Mumbai Railway Vikas Corporation (MRVC) has floated tenders for 2,856 air-conditioned (AC) electric multiple unit (EMU) coaches.
- Sep 9, 2025,
- Updated Sep 9, 2025 1:35 PM IST
After nearly two years of inactivity, coach manufacturing in India is seeing a revival. Multiple metro rail coach tenders have been awarded over the past six months, and brokerage Nuvama Institutional Equities expects these new tenders to keep order inflows healthy for Indian coach makers. Titagarh Rail emerges as Nuvama’s preferred pick in the space.
“Diwali celebrations have kicked off early for railway coach manufacturers as the Mumbai Railway Vikas Corporation (MRVC) has floated tenders for 2,856 air-conditioned (AC) electric multiple unit (EMU) coaches, branded ‘Vande Metro’, for the Mumbai suburban rail network,” Nuvama said, estimating the opportunity at Rs 21,000 crore.
The brokerage expects the tender to sustain strong order inflows and maintains a ‘Buy’ rating on Titagarh Rail.
Nuvama noted that technology partners would manufacture the Vande Metro rakes in India. While details are still emerging, the brokerage believes the competition will likely be limited to three private-sector players with existing coach production facilities: Alstom, BEML, and Titagarh Rail.
"We believe order inflow should remain strong for the three existing coach manufacturers in India. Even assuming that the MRVC tender gets split and is awarded to two players, the third player can bid for future Vande Bharat/metro rail coach projects to shore up its order book without facing much competition. We remain positive on Titagarh Rail (Buy) in this space," Nuvama said. It did not offer any target price for the stock.
The MRVC may award the entire 2,856-coach project to a single bidder, with delivery required within 7.5 years of the ‘Appointed Date’, or split it between two bidders — 1,715 coaches to L1 and 1,141 to L2, with L2 matching L1’s quote, each completing delivery in 6.5 years.
Prototypes of the 12-car Vande Metro rake are to be delivered within 24 and 26 months from the ‘Appointed Date’. The winning bidder will have 42 months from the Appointed Date, or 30 months from handover of land, to set up new maintenance depots, whichever is later.
After nearly two years of inactivity, coach manufacturing in India is seeing a revival. Multiple metro rail coach tenders have been awarded over the past six months, and brokerage Nuvama Institutional Equities expects these new tenders to keep order inflows healthy for Indian coach makers. Titagarh Rail emerges as Nuvama’s preferred pick in the space.
“Diwali celebrations have kicked off early for railway coach manufacturers as the Mumbai Railway Vikas Corporation (MRVC) has floated tenders for 2,856 air-conditioned (AC) electric multiple unit (EMU) coaches, branded ‘Vande Metro’, for the Mumbai suburban rail network,” Nuvama said, estimating the opportunity at Rs 21,000 crore.
The brokerage expects the tender to sustain strong order inflows and maintains a ‘Buy’ rating on Titagarh Rail.
Nuvama noted that technology partners would manufacture the Vande Metro rakes in India. While details are still emerging, the brokerage believes the competition will likely be limited to three private-sector players with existing coach production facilities: Alstom, BEML, and Titagarh Rail.
"We believe order inflow should remain strong for the three existing coach manufacturers in India. Even assuming that the MRVC tender gets split and is awarded to two players, the third player can bid for future Vande Bharat/metro rail coach projects to shore up its order book without facing much competition. We remain positive on Titagarh Rail (Buy) in this space," Nuvama said. It did not offer any target price for the stock.
The MRVC may award the entire 2,856-coach project to a single bidder, with delivery required within 7.5 years of the ‘Appointed Date’, or split it between two bidders — 1,715 coaches to L1 and 1,141 to L2, with L2 matching L1’s quote, each completing delivery in 6.5 years.
Prototypes of the 12-car Vande Metro rake are to be delivered within 24 and 26 months from the ‘Appointed Date’. The winning bidder will have 42 months from the Appointed Date, or 30 months from handover of land, to set up new maintenance depots, whichever is later.