3:5 bonus share: Railway Kavach company deepens partnership with Progota; Boosting stake to 46.5% to accelerate Kavach ATP deployment
DSIJ Intelligence-1 / 14 Oct 2025/ Categories: Multibaggers, Trending
The stock has given multibagger returns of 190 per cent from its 52-week low of Rs 971.15 per share and a whopping 340 per cent in 2 years.
Concord Control Systems Limited (BSE: CNCRD) has significantly deepened its commitment to Progota India Private Limited by acquiring a further stake, boosting its total equity holding to 46.5%. This strategic investment, announced on October 14, 2025, aims to aggressively drive the commercialisation and nationwide deployment of Kavach 4.0, India's flagship indigenous Automatic Train Protection (ATP) solution. The move strategically combines Concord's robust manufacturing and system-integration strengths with Progota’s specialised research and development capabilities in Railway automation and Kavach systems. The primary goal is to expand the reach and supply capacity for this critical rail safety technology, which is engineered to prevent collisions and enforce signal compliance by automatically controlling train speed.
This expanded partnership is perfectly aligned with the Government of India's Atmanirbhar Bharat and Make-in-India initiatives, positioning both companies as key contributors to the country’s massive rail modernisation program. Indian Railways plans to roll out Kavach across approximately 13,000-15,000 locomotives and 70,000 track kilometres, creating one of the world’s largest ATP deployments and ensuring a robust market with strong revenue visibility for suppliers. Underscoring this demand, Concord and Progota have already secured a significant Rs 19.45 crore order for the Kavach 4.0 system, covering the design, development, supply, and commissioning of both onboard and trackside equipment for the South-Central Railway.
Concord’s next-generation Kavach system has successfully navigated the rigorous Indian Railways approval process, having completed approximately 70% of the demanding SIL4 (Safety Integrity Level 4) certification. The remaining stages are scheduled for completion alongside upcoming trials. By developing the product entirely in-house, the company has achieved a substantial first-mover advantage in the competitive railway safety electronics market. This rapid progression and the capability to deliver a fully developed Kavach system highlight Concord's leadership in technology, regulatory compliance, and speed-to-market, setting new benchmarks for rail safety innovation in India.
Additionally, the Board of Directors of Concord Control Systems Limited (CCSL) held a meeting and recommended a bonus issue of shares. The proposed ratio for the bonus shares is 3:5, meaning that for every five existing fully paid-up equity shares of Rs. 10 each, shareholders will receive three new fully paid-up equity shares of the same face value. The specific record date to determine shareholder eligibility for the bonus shares will be announced by the company at a later time.
About the Company
Concord Control Systems Ltd, incorporated in 2011, is a key player in the electrical machinery sector, primarily serving Indian Railways. The company is ISO 9001:2015 certified and recognised as an OEM and RDSO-approved manufacturer. Concord's product portfolio spans railway electrification and coaching, including battery chargers, control panels, testing machines, emergency lighting, and fans. The company is transitioning from a product supplier to a solution provider, with ongoing development of a prototype for control and relay panels. Concord operates manufacturing facilities in Lucknow, Bengaluru, and Hyderabad, and serves both government and private clients, including major entities like Rail Coach Factory Kapurthala and Larsen & Toubro. As of H1FY25, Concord's Order Book stands at Rs 206 crore, reflecting a steady growth trajectory.
Concord Control Systems Limited has a market capitalisation of over Rs 1,700 crore. 3 Ace Investors, Mukul Mahavir Agrawal holds 2,40,000 shares or 3.81 per cent stake and Ashish Kacholia hold 76,433 shares or a 1.21 per cent stake in the company. Additionally, Asha Mukul Agrawal (wife of Mukul Mahavir Agrawal) bought 95,542 shares or a 1.52 per cent stake. The stock has given multibagger returns of 190 per cent from its 52-week low of Rs 971.15 per share and a whopping 340 per cent in 2 years.
Disclaimer: The article is for informational purposes only and not investment advice.