The railway industry in India, known for its extensive network, plays a pivotal role in the country’s transportation sector. With over 67,000 km of track and around 8.4 billion passengers annually, Indian Railways is one of the world’s largest rail networks, facilitating both passenger and freight transport across the nation.
Indian Railway has prepared a modernization plan for post-election 2024, with an investment of Rs 10 to 12 lakh crore over the next five years for transforming railways with modern world-class facilities.
The new ticket refund mechanism would secure returns within 24 hours, replacing the existing three-day to one-week refund process.
Railways will introduce a comprehensive ‘super App’ with all railway-related capabilities, including ticket purchase and cancellation, live train monitoring, and food bookings on trains.
Vande Bharat trains will be introduced across India in three categories, Vande metro on routes of less than 100 kms, Vande chair car on 100 to 550 kms routes, and Vande Sleeper for routes of over 550 kms.
The Railways have proposed three economic corridors spanning over 40,000 kilometers, with a total investment of about Rs 10 lakh crore.
Over 1,300 railway stations will be refurbished using private funding. The renovated stations will have world-class facilities like as retail malls and airport-style waiting lounges.
Metro networks will be expanded in additional urban areas. Metro is now operational or has been launched in 20 metropolitan cities.
Here are the stocks in focus after the government infuses 10 to 12 lakh crore in railway modernization;
Oriental Rail Infrastructure Ltd
Oriental Rail Infrastructure Ltd manufactures, buys, and sells all varieties of Recron, Seat & Berth, and Compreg Boards, as well as trades forest woods and their products.
With a market capitalization of Rs 1,588.95 crore, the shares were trading at Rs 269.50 per share, increasing around 3.42 percent as compared to the previous closing price.
Looking into the company’s financials, the revenue increased by 39 percent, from Rs 106 crore in Q3 FY23 to Rs 147 crore in Q3 FY24. During the same period, net profit increased by 550 percent, from Rs 2 crore to Rs 13 crore.
Indian Railway Finance Corp Ltd
Indian Railway Finance Corporation Limited engages in the Leasing and Finance sector. The Company’s primary operation is to borrow cash from the financial markets to support the acquisition or production of assets, which are subsequently leased to the Indian Railways as a finance lease.
With a market capitalization of Rs 1.88 lakh crore, the shares were trading at Rs 144.00 per share, increasing around 1.62 percent as compared to the previous closing price.
Looking into the company’s financials, the revenue increased by 39 percent, from Rs 6,218 crore in Q3 FY23 to Rs 6,742 crore in Q3 FY24. During the same period, net profit decreased by 2 percent, from Rs 1,633 crore to Rs 1,604 crore.
Jupiter Wagons Ltd
Jupiter Wagons Limited is an integrated railway engineering firm that manufactures freight wagons and passenger coaches for the Indian Railways. The company manufactures railway wagons, wagon components, castings, and metal fabrication, including load bodies. For commercial vehicles, rail freight wagons, and parts.
With a market capitalization of Rs 15,751.68 crore, the shares were trading at Rs 382.05 per share, increasing around 3 percent as compared to the previous closing price.
Looking into the company’s financials, the revenue increased by 8 percent, from Rs 644 crore in Q3 FY23 to Rs 896 crore in Q3 FY24. During the same period, net profit increased by 80 percent, from Rs 46 crore to Rs 83 crore.
Ircon International Ltd
Ircon International Limited (IRCON) is an integrated engineering and construction PSU specializing in large and technologically complex infrastructure projects in a variety of sectors such as railways, highways, and so on.
With a market capitalization of Rs 20,982.91 crore, the shares were trading at Rs 223.10 per share, increasing around 1.13 percent as compared to the previous closing price.
Looking into the company’s financials, the revenue increased by 23 percent, from Rs 2,347 crore in Q3 FY23 to Rs 2,884 crore in Q3 FY24. During the same period, net profit increased by 29 percent, from Rs 190 crore to Rs 245 crore.
Written by:- Abhishek Singh
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