A budget is a calculating plan, for a specific period, often one year. A budget may include predicted sales volumes and revenues, resource quantities such as time, costs, and expenses, environmental impacts such as greenhouse gas emissions, other effects, assets, liabilities, and cash flows.
Financial Minister Nirmala Sitharaman has proposed a capex of Rs 2.55 lakh crore for the Indian Railways in fiscal year 2024, as well as three new railway corridors: the Energy, Mineral, and Cement Corridor, the Port Connectivity Corridor, and the High Traffic Density Corridor.
Furthermore, these corridors were selected under the PM Gati Shakti initiative to facilitate multimodal connectivity. These routes will cut expenses while increasing efficiency.
In addition, the Finance Minister declared that 40,000 bogies will be renovated to Vande Bharat standard to increase passenger safety and convenience.
Here are the six stocks that can benefit from the capex plan on the Indian railway:
Indian Railway Finance Corporation Ltd
The Indian Railway Finance Corporation borrows cash from the financial markets to finance the acquisition/creation of assets, which are subsequently leased out to the Indian Railways as finance leasing.
With a market capitalization of Rs 2.25 lakh crore, the shares were trading at Rs 172.50 per share, decreasing around 1.45 percent as compared to the previous closing price of Rs 175.03 apiece.
Jupiter Wagons Ltd
Jupiter Wagons Limited is a railway engineering business that provides freight wagons and passenger coaches for the Indian Railways. The Company manufactures railway wagon metal fabrication, including load bodies for commercial vehicles, rail freight wagons, and components.
With a market capitalization of Rs 16,300.03 crore, the shares were trading at Rs 396.30 per share, decreasing around 2.08 percent as compared to the previous closing price of Rs 403.75 apiece.
Titagarh Rail Systems Ltd
Titagarh Rail Systems Ltd is mainly engaged in the manufacturing and selling of Freight Wagons, Train Electricals, Steel Castings, Specialised equipment & Bridges, Ships, etc. The company caters to both domestic and export markets.
With a market capitalization of Rs 14,504.36 crore, the shares were trading at Rs 1,077.00 per share, decreasing around 1.56 percent as compared to the previous closing price of Rs 1,094.05 apiece.
IRCON International Ltd
Ircon International Limited operates in infrastructure sectors such as railways, highways, bridges, flyovers, tunnels, metro, railway electrification, extra high voltage substations, electrical and mechanical works, commercial and residential buildings, and railway production units, among others.
With a market capitalization of Rs 21,848.18 crore, the shares were trading at Rs 232.05 per share, decreasing around 2.23 percent as compared to the previous closing price of Rs 237.35 apiece.
Rail Vikas Nigam Ltd
Rail Vikas Nigam Ltd is in the business of implementing various sorts of rail infrastructure projects given by the Ministry of Railways, such as doubling, gauge conversion, new lines, railway electrification, significant bridges, workshops, production units, and freight revenue sharing with railways.
With a market capitalization of Rs 62,634 crore, the shares were trading at Rs 299.80 per share, decreasing around 2.76 percent as compared to the previous closing price of Rs 308.30 apiece.
RailTel Corporation of India Ltd
RailTel Corporation of India Limited is a neutral telecom infrastructure provider established in India. It owns a Pan-India optic fiber network on a railway track’s right of way (ROW). Telecom Services and Project Work Services are two of the company’s business segments. It offers a range of telecom services.
With a market capitalization of Rs 13,686.42 crore, the shares were trading at Rs 427.00 per share, decreasing around 2.37 percent as compared to the previous closing price of Rs 437.35 apiece.
Written by:- Abhishek Singh
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