Investors place strategic wagers on railway stock prices at the racetrack 2022.
Certain sector-specific stocks have recently gained attention because of the result of investors gobbling up shares of railroad businesses. Shares of Titagarh Wagons, Indian Railway Financing Corporation Ltd. (IRFC), Rail Vikas Nigam Ltd. (RVNL), and Texmaco Rail, but even Engineering traded 5–10% higher on the BSE at 11:23 am today.
At 12 o’clock in the afternoon on the BSE, Titagarh Wagons stock and shares of RVNL were trapped in the upper loop at Rs 186.35 and Rs 80.30, respectively. In the other month, RVNL created returns of 96%, and IRFC produced returns of 51%. Shares in IRFC, RVNL, RITES, Titagarh Carriages, Texmaco Rail & Engineering, and Railtel India Corporation have increased between 18 and 147% for the last three months.
“In general, railroad stocks are a tactical move. According to Awanish Chandra, Head of Equity, SMIFS, “This indicates that investors are purchasing these shares in the short-term financial bet based on the expected of some statement from the government. He noted that it is expected that the declaration will be on capital expenditures for railroads.
Additionally, Chandra said that many stocks with ties to the railroad industry are often undervalued, providing room for a rise in share price. The news that the government would sell up to 10% of its stake in RailTel, RVNL, or four additional public railroad companies served to bolster investor excitement for the sector, particularly for the publicly traded railroad companies.
Chandra mentioned that the excitement surrounding railroad stocks is due to the anticipation of a budget statement pertaining to the industry. According to a report, the budget for 2023–2024 is expected to include announcements of around 300–400 Vande Bharat trains to be part of the Indian Railway’s aim to update existing rolling equipment. The fleet of 400 such trains planned this year is in addition to this.
The research stated that it is expected that roughly 100 trains will be produced in 2023–2024. According to reports, the government budget’s investment in metro rail increased 91% every year to Rs 88,548 crores in the first half of this fiscal year.
One of the best railway companies in India, Indian Railway Catering and Travel Corporation Limited, provides online tickets, catering, and travel services. The company’s main operation is providing culinary and hospitality facilities at stops, on railways, and in other areas.
Its segments include travel and tourism, bottled drinking water, catering, and leisure (Rail Neer). In addition, it provides different services, including bus service, package deals, tourist trains, highland Railways, charter trains, rail Drishti, e-catering, and more.
The business provides different vacation tour packages. Additionally, the enterprise provides the official IRCTC app, which comes with the IRCTC Zone, iPay Payment System, Wallet, and loyalty program. Indian Railway Finance Corporation, the financial arm of the Indian Railways, is headquartered there. It is regarded to be one of India’s top railroad stocks.
The company runs its operations through the Leasing & Finance section. It focuses primarily on leasing, borrowing, and lending operations.
The company’s main line of business is the financial leasing of new train resources, which includes powered and powered-down vehicles, including a coach, wagons, lorries, flats, different electric units, containers, cranes, trollies of different varieties, and other rolling stock elements.
It participates in financing other institutions that fall under the Ministry of Railways and renting national projects or railway infrastructure assets from the Indian government (MoR). Additionally, it aids railroad projects and capacity-building programs.
It mainly focuses on projects that aim to open up and clear congestion in the existing Railway network. Additionally, it acts as a lender for a number of other railroad-related companies, like Railtel, ICON, and Konkan Railway Co. Ltd. (KRCL).
Edited by Prakriti Arora