Low PE High ROCE Engineering Stock Receives RDSO Approval For Railway Bogie Components

On Wednesday, the Indian equity benchmarks ended marginally lower, with the benchmark Nifty 50 index declining 0.03 per cent to close at 23,907.15. Railway and engineering stocks remained in focus amid infrastructure expansion and railway modernisation developments. In this segment, Simplex Castings  share price ended 5.69 per cent higher at Rs 485.30 on May 27, 2026, compared with the previous close of Rs 459.20, after the company received RDSO approval for railway bogie prototype testing.

Simplex Castings receives RDSO approval

Simplex Castings Limited announced that it has received approval from the Research Designs & Standards Organisation (RDSO), Ministry of Indian Railways, under the fresh registration process for prototype testing of Cast Steel CASNUB Bogies and critical railway wagon components.

The approval covers multiple railway bogie components including Cast Steel Side Frames, Cast Steel Bolsters, Centre Pivot Assemblies and CASNUB 22HS/22HS(M) and 22RFT Bogies.

The company stated that prototype testing will be conducted in accordance with RDSO specifications and quality requirements.

Approval enables participation in railway tenders

The company stated that the approval enables it to bid for railway tenders and expand participation in the domestic railway market.

Simplex Castings added that it historically held around 60–70 per cent market share in cast bogies, highlighting its earlier position in the railway components segment.

The development comes amid ongoing railway modernisation, freight corridor expansion and rising demand for advanced wagon components across the Indian Railways ecosystem.

Company targets Rs 100 crore railway revenue

To support expansion in the railway segment, the company stated that its marketing team is actively tracking and bidding for relevant tenders while manufacturing facilities are undergoing capital expenditure for bogie production.

The railway business is expected to become a core revenue contributor, with the company targeting around Rs 50 crore revenue by the end of the current financial year and more than Rs 100 crore revenue by the end of the next financial year.

Management commentary

Commenting on the development, Ketan Shah, Chairman and Executive Director, said:

“Receiving RDSO approval is an important milestone for the Company and reflects the strength of our legacy in Bogie manufacturing and quality systems. Over the years, we have consistently strengthened our position in the engineering and railway components space through a strong focus on quality, execution, and customer trust. The railway sector, with this approval, presents a significant long-term opportunity, supported by increasing investments in infrastructure and freight mobility, and we believe this approval will help us further scale our participation in this segment. We built this company on the back of our railway business, and we are now rebuilding that chapter with the same focus on quality and execution that defined us earlier.”

Shareholding and stock performance

Simplex Castings Ltd ended at Rs 485.30 on May 27, 2026, compared with the previous close of Rs 459.20, reflecting a gain of 5.69 per cent during the session.

The stock has delivered returns of around 47.13 per cent over the past one year, while two-year and three-year returns stood at 147.60 per cent and 1,016.92 per cent respectively. The stock’s 52-week high and low stood at Rs 583.25 and Rs 299.60 respectively.

Foreign institutional investor holding increased to 4.94 per cent from nil in the previous reporting period, while domestic institutional investor holding declined to nil from 0.07 per cent.

About Simplex Castings

Simplex Castings Ltd is engaged in manufacturing engineering castings and industrial components catering to railway, mining, cement, steel and heavy engineering industries. The company manufactures cast steel products and railway wagon components and is focused on expanding its participation in railway infrastructure and freight mobility projects.

What are your views on Simplex Castings’ RDSO approval and India’s railway infrastructure expansion opportunity? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.