Railway stock in focus after company allots shares to Ashish Kacholia on preferential basis

SYNOPSIS: Concord Control Systems approved a Rs. 50.08 crore preferential issue to non-promoters, including Ashish Kacholia, whose stake increased to 1.64 percent following the allotment of additional equity shares.

During Wednesday’s trading session, shares of one of India’s leading manufacturers of embedded electronic systems and critical electronic solutions are in focus on the BSE, after the company announced allotting shares to a renowned investor, Ashish Kacholia, on a preferential basis.

With a market cap of Rs. 2,408.6 crores, shares of Concord Control Systems Limited closed in the red at Rs. 2,380 on BSE, down by around 3 percent, as against its previous closing price of Rs. 2,442.9. The stock has delivered multibagger returns of around 162 percent in one year, but has fallen by nearly 3 percent in the last one month.

News

As per its latest regulatory filing, the Board of Concord Control Systems Limited, at its meeting held on Wednesday, 28th January, approved the allotment of 2,38,500 equity shares on a preferential basis at an issue price of Rs. 2,100 per share, including a security premium of Rs. 2,090 per share. The preferential issue aggregates to Rs. 50.08 crore and has been allotted to non-promoter investors, namely Sageone-Flagship Growth OE Fund, Sanshi Fund-1, and Ashish Rameshchandra Kacholia.

Post the preferential allotment, the renowned ace investor Ashish Rameshchandra Kacholia will see his shareholding increase from 1,46,292 shares (1.44 percent) to 1,70,292 shares, translating into a higher stake of 1.64 percent in the company, following the allotment of 24,000 additional equity shares. Additionally, according to the latest shareholding pattern, Mukul Mahavir Agrawal holds a 3.96 percent stake in the company.

Financials

Concord Control Systems Limited is engaged in the business of electrical machinery for Indian Railways and allied products. As of September 2025, the company reported an order book of Rs. 313 crores.

The company operates state-of-the-art manufacturing facilities in Lucknow, Bengaluru (Advanced Rail), and Hyderabad (Progota India), supported by advanced R&D capabilities encompassing product engineering, simulation, prototyping, and testing.

The company is targeting a revenue CAGR of around 40 percent to 50 percent over the next 3-5 years, while aiming to maintain EBITDA margins in the range of 22 percent to 25 percent. Alongside financial growth, the company is focused on building a global presence by positioning itself as a 360-degree solution provider to the railway industry. It is also sharpening its focus on ESG-led initiatives, including hydrogen and battery-related technologies, while developing products aligned with future-ready and sustainable mobility solutions.

Concord Control Systems reported a significant growth in its revenue from operations, showing a year-on-year increase of around 64 percent from Rs. 50 crores in H1 FY25 to Rs. 82 crores in H1 FY26. Likewise, its net profit doubled during the same period from Rs. 8 crores to Rs. 16 crores, representing an impressive rise of nearly 100 percent YoY.

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