CG Power and Industrial Solutions witnessed pressure on its stock after its subsidiary, G.G. Tronics India Pvt. Ltd. (GGT), confirmed that a major order from Chittaranjan Locomotive Works (CLW) has been cancelled. As of 9:24 AM, the shares were trading 1.68% lower at Rs 698.25.
GGT recently announced strong progress in developing and field-validating its Uniform Braking Algorithm, designed to bring consistent braking performance across various locomotive classes of Indian Railways. The project—driven by the Centre of Excellence (COE) and RDSO—aims to set a new benchmark for braking technology and ensure uniform performance among different suppliers.
The cancelled order, awarded in November 2024 under the Developmental Category, was for the supply of Loco Kavach systems. Although GGT has nearly completed product development, Independent Safety Assessment (ISA), and RDSO approvals, the company could not begin deliveries within the stipulated 12-month period because these approvals took longer than expected. As a result, CLW has cancelled the contract.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.