Prime Minister Narendra Modi will inaugurate a series of railway infrastructure projects valued at over Rs 41,000 crore. Under the ambitious Amrit Bharat Station Scheme, PM Modi will also lay down the foundation stones for the redevelopment of 553 railway stations.
Spread across 27 states and union territories, these redevelopment projects are estimated to cost upwards of Rs 19,000 crores. Here are some of the railway stocks that might benefit
Ircon International
Ircon International is a specialized construction organization under the Ministry of Railways, it covers the entire spectrum of construction activities and services in the Infrastructure sector including railways, bridges, sub-stations, and many more with operations in domestic as well as foreign countries.
With a market capitalization of Rs. 21,966 Crores, the shares of Ircon International Limited were trading at Rs. 233.55, up 2 percent from its previous day’s close price of Rs. 228.75.
As of Q3FY24, Ircon International Limited has an order book of Rs. 29,436 Crores, which consists of 72 percent of work related to railways, 20.7 percent to Highways, and 7 percent to others.
Its revenue from operations grew by 40.49 percent from Rs. 7,380 Crores in FY22 to Rs. 10,368 Crores in FY23, accompanied by increasing profits of Rs. 592 Crores to Rs. 765 Crores.
Rail Vikas Nigam
Rail Vikas Nigam Limited is a central public sector enterprise with a Navratna status, it is engaged in the business of development, financing, and implementing various types of Rail infrastructure projects like doubling, gauge conversion, new lines, railway electrification, major bridges, etc.
With a market capitalization of Rs. 55,784 Crores, the shares of Rail Vikas Nigam Limited were trading at Rs. 267.55, up 1.06 percent from its previous day’s close price of Rs. 264.75
As per the transcript call on February 2024, Rail Vikas Nigam Limited has a strong work order book of Rs. 65,000 Crores.
Its revenue from operations grew 4.64 percent from Rs. 19,382 Crores in FY22 to Rs. 20,282 Crores in FY23, accompanied by increasing profits of Rs. 1,110 Crores to Rs. 1,421 Crores.
NCC
NCC Limited is primarily engaged in the business of undertaking EPC contracts and BOT projects involving the construction of industrial and commercial buildings, roads, railway track laying, dedicated freight corridors, power transmission lines, and many more.
With a market capitalization of Rs. 16,042 Crores, the shares of NCC Limited were trading at Rs. 255.50, up 0.33 percent from its previous day’s close price of Rs. 254.65
As of Q3FY24 NCC Limited has a diversified order book of Rs. 57,400 Crores, with business verticals across buildings, transportation, electrical T&D, irrigation, mining, and railways.
Its revenue from operations grew by 39.64 percent from Rs. 11,138 Crores in FY22 to Rs. 15,533 Crores in FY23, accompanied by increasing profits of Rs. 494 Crores to Rs. 646 Crores.
Kalpataru Projects International
Kalpataru Projects International Limited is one of the largest specialized Engineering, procurement and Construction (EPC) companies engaged in Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways and Airports.
As of December 2023, it has a strong order book of Rs. 51,753 Crores, out of which Domestic orders are 61 percent and International Orders are 39 percent.
Its total order book breakdown from different business segments is as follows, Transmission and distribution 37 percent, buildings, and factories 24 percent, water 22 percent, Railways 7
percent, Urban Infra 7 percent, and Oil & gas 3 percent.
Its revenue from operations grew by 10.72 percent from Rs. 14,777 Crores in FY22 to Rs. 16,361 Crores in FY23, accompanied by profits of Rs. 535 Crores to Rs. 435 Crores.
Written by: Bharath K.S
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