Recently listed stock hits lower circuit despite winning order from Indian Railways

Synopsis: The shares of this stock opened at the day’s low after its bumper listing, and a Rs 27.34 crore order for a work contract from South East Central Railway (SECR), Raipur Division.

The shares of the company whose expertise spans across signaling and telecommunication systems, track electrification, and turnkey railway infrastructure projects involving civil and track components, are in focus after the bumper listing and the receipt of orders from Indian Railways.

With a market capitalization of Rs 537.49 crore, E to E Transportation Infrastructure Ltd’s shares on Monday made a day low of Rs 311.45 per share, down by 5 percent from its previous day’s close price of Rs 327.80 per share. The share has given an SME gains of about 88.39 percent on the listing date

What happened

E To E Transportation Infrastructure Limited has secured a major new project from South East Central Railway’s Raipur Division, strengthening its presence in the railway infrastructure space. The Rs 27.34 crore order involves execution of Signalling and Telecommunication works in connection with the construction of the 4th line between Durg–Durg Link Block Station and provision of Distributed EI at Durg station.

Under the contract, the company will have a performance guarantee of 5 percent of the contract value that is to be submitted within 21 days and an 18-month completion period from the LOA date. The further details included in the contract is the company will handle end-to-end execution, including installation of electronic interlocking systems(EL), MSDAC, cable laying, signaling works, and final testing and commissioning.

The company was listed on January 2, 2026, with a listing gain of 88.39 percent to Rs 330.60 from its final issue price of Rs 174 per share. It being an SME IPO, the retail volume is relatively smaller compared to mainboard IPOs, as the minimum subscription price of investment for an individual is high; in our case, it went to Rs 2,78,400 for 1 lot of E2E rail consisting of 1,600 shares, leading to lower volumes.

The market float of recently listed companies are very low due to investor & promoter lock in period, that even a small selling or buying trigger huge volatility in the stock. While considering all the factors around, the profit booking after the bumper listing has overshadowed the significant railway order news and led to the fall of the stock.

Also read: 20% Upper Circuit: 6 Stocks that hit upper circuit today; Are you holding any?

About the company

Incorporated in 2010, E To E Transportation Infrastructure Limited is an ISO certified company engaged in providing system integration and engineering solutions for the railway sector. The company’s expertise spans signaling and telecommunication systems, track electrification, and turnkey railway infrastructure projects involving civil and track components

Service Offerings: Signaling and Telecommunications (S&T), Overhead Electrification (OHE), Track Projects and System Integration, Private Sidings and Engineering Design and Research Centre (EDRC). The company operates across mainline, urban transit, and private siding segments, offering end-to-end rail engineering services including design, procurement, installation, and testing.

Financial highlights: the company has reported a total income of Rs 112.78 crore in Q2 FY26 and a negative EBITDA of Rs 3.88 crore, followed by a negative PAT of Rs 7.49 crore in the same quarter. Resulting in a ROE of 15.72 percent and ROCE of 15.69 percent, representing efficient business operations.

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