Over the last year, three railway stocks have witnessed a substantial increase in FII holdings, indicating a strong vote of confidence from international investors. This rise in interest demonstrates the sector’s resiliency and potential for strong growth in the coming future.
In this article, we have mentioned three railway stocks which have experienced a significant increase in Foreign Institutional Investors (FIIs) on a quarter-on-quarter basis from the September 2023 to the December 2023 quarter.
Titagarh Rail Systems Limited
The foreign investors in Titagarh Rail Systems Limited (TRSL) increased by 3.19 percent from 16.85 percent in Q2 FY23-24 to 20.04 percent in Q3 FY23-24.
One of the reasons behind this significant increase in the FIIs can be due to the raising of Rs. 700 crore by issuing fresh shares to QIP (Qualified Institutional Buyers) in December 2023.
With a market cap of Rs. 13,990 crore, the share price of Titagarh Rail Systems moved down by nearly 4.21 percent to close at Rs. 1,042.00, compared to its previous closing price of Rs. 1,087.80.
TRSL has given over 61.4 percent returns in the last six months and nearly 122 percent in the last one year, whereas, so far in 2024, it delivered positive returns of around 0.02 percent.
The company’s revenue from operations grew by 2.63 percent from Rs. 911 crore in the Q1 FY23-24 to Rs. 935 crore in Q2 FY23-24, accompanied by an increase in the net profits by 14.51 percent from Rs. 62 crore to Rs. 71 crore during the same period.
Titagarh is a leading mobility solution provider with a strong presence in India and Italy and is primarily engaged in the manufacturing and selling of metro trains, passenger coaches, ships, etc.
Jupiter Wagons Limited
Jupiter Wagons is a railway engineering business that provides freight wagons and passenger coaches for the Indian Railways and manufactures railway wagons, wagon components, castings, and metal fabrication, including load bodies for commercial vehicles and rail freight wagons.
The company was incorporated as a private limited company with the name Commercial Engineers & Body Builders Co. Private Limited in 1979.
With a market capitalisation of Rs. 16,714 crore, FIIs in the company significantly increased by 0.4 percent from 0.86 percent in Q2 FY23-24 to 1.26 percent in Q3 FY23-24. One reason behind this increase in foreign investors can be due to the raising of Rs. 403 crore through QIP in December 2023.
The company’s share price moved up by 2.17 percent and closed at Rs. 404.5 on February 2nd, compared to its previous closing price of Rs. 395.9. It has delivered returns of over 100 percent in the last six months, whereas nearly 283.23 percent in the last one year. So far in 2024, it has given positive returns of around 26.45 percent.
In terms of financials, the revenue from operations increased by 16.73 percent from Rs. 753 crore in Q1 FY23-24 to Rs. 879 crore in Q2 FY23-24, accompanied by an increase in net profit by 28.12 percent from Rs. 64 crore to Rs. 82 crore during the same period.
Ircon International Limited
With a market cap of Rs. 21,867 crore, Ircon International experienced a rise in foreign investors by 0.1 percent from 4.01 percent in Q2 FY23-24 to 4.11 percent in Q3 FY23-24.
The company’s revenue from operations grew by 9.93 percent to Rs. 2,987 in Q2 FY23-24 from Rs. 2,717 crore in Q1 FY23-24, accompanied by an increase in net profit by 34.22 percent to Rs. 251 crore from Rs. 187 crore in the same period.
The share price of Ircon International Ltd. moved up by 1.71 percent and closed at Rs. 232.25 on Friday, compared to its previous close of Rs. 228.60.
The company has given over 141 percent returns in the past six months and nearly 306.03 percent in the last one year. So far, it has yielded returns of more than 33 percent in 2024. On January 23 this year, the company hit a new all-time high at Rs. 280.85.
Ircon International Ltd. is a government company incorporated by the Ministry of Railways and is the leading turnkey construction company in the public sector.
Written by Shivani Singh
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