The railway network is crucial to the country’s ecosystem, as it carries 90 percent of the raw materials. India is undertaking a large-scale project to build efficient transport corridors across the nation.
Derivative & Technical Analyst Motilal Oswal reported that the railways ministry to propose a substantial investment program of Rs 5.25 lakh crore during fiscal years 2024-31, subject to Cabinet approval. This program is part of the PM Gati Shakti National Master Plan and aims to enhance rail connectivity to mining areas, cement plants, and consumption centers.
The primary purpose of railway infrastructure investment is to eliminate bottlenecks in the current railway network and the projects will entail modernizing train infrastructure, as well as improving access to coal, iron ore, bauxite, and cement plants.
The four railway-related stocks listed below rose up to 20% today
Rail Vikas Nigam Ltd
Rail Vikas Nigam Ltd shares rose 18 percent on Monday, and closed at Rs 154.40, up 11.64 percent from the previous close price, with a market value of Rs 32,192 crores. Rail Vikas Nigam Ltd is in the business of financing, project development, and implementing rail infrastructure projects.
Furthermore, the company obtained a letter of acceptance (LOA) from Madhya Gujarat Vij Business Ltd (MGVCL) for a Full Turnkey Contract (Design, Supply, and Installation) for Distribution Infrastructure Development work. The project would cost Rs 322.08 crore.
Indian Railway Finance Corporation Ltd
Indian Railway Finance Corporation Ltd shares rose 20 percent on Monday, and closed at Rs 66.70, up 19.63 percent from the previous close price, with a market value of Rs 87,166 crores.
Indian Railway Finance Corporation is engaged in raising funds to meet the developmental needs of the Indian Railways through various financial markets.
Ircon International Ltd
Ircon International Ltd shares increased 14 percent on Monday and closed at Rs 127.80, up 7.71 percent from the previous close price, with a market value of Rs 12,024 crores.
The company specializes in the development of EHV substations, new railway lines, restoration, station buildings and amenities, bridges, tunnels, signaling and telecommunication, and railway electrification.
IRCTC – Indian Railway Catering & Tourism Corporation Ltd
IRCTC shares gained 2.8 percent on Monday, and closed at Rs 703.25, up 2.16 percent from the previous close price, with a market value of Rs 56,260 crores.
IRCTC is the only company authorized by the Indian government to supply online railway tickets, food services, and packaged drinking water at Indian railway stations and trains.
Written by Omkar Chitnis
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