Union Minister Ashwini Vaishnaw has announced a significant boost to the country’s rail network, including producing 2,500 new general passenger train coaches and approving an additional 10,000 coaches.
As per reports, in FY 2024-25, Indian Railways plans to manufacture 2,605 general coaches including Amrit Bharat General coaches, 1,470 non-AC Sleeper coaches including Amrit Bharat Sleeper coaches, and other types of coaches.
Furthermore, in FY 2025-26, the Indian Railways plans to manufacture 2,710 general coaches, 1,910 non-AC Sleeper coaches, and other coach varieties.
This initiative is aimed at addressing the high demand for affordable rail travel, especially among economically weaker sections that rely on non-AC coaches. The boosted production will ease overcrowding, shorten waiting lists, and enhance the overall passenger experience.
Listed below are the stocks that may benefit from this initiative:
Titagarh Rail Systems Ltd
With a market capitalization of Rs. 24,413 crores, the shares of Passenger Coaches manufacturing company started Monday’s trading session on a higher note at Rs. 1,859 compared to its previous close of Rs. 1,828.95. During the trading session, the shares hit a high of Rs. 1,861, gaining around 1 percent and are currently trading at Rs. 1,819 apiece.
Coming onto the company’s financial statements, the revenue jumped by 10 percent from Rs. 954.68 crores during the December quarter to Rs. 1,052.41 crores in the March quarter. On the other hand, the net profits increased by 6 percent from Rs. 74.82 crores to Rs. 78.95 crores during the same timeframe.
As of March 31, 2024, the total order book of the company amounted to Rs. 28,076 crores. Within this figure, orders totalling Rs. 14,750 crores were directly received by the company, while the remaining Rs. 13,326 crores represent the company’s share of the order book within joint ventures.
Jupiter Wagons Ltd
With a market capitalization of Rs. 29,355 crores, the shares of rail freight wagons, and components manufacturing company started Monday’s trading session on a higher note at Rs. 736.60 compared to its previous close of Rs. 730. During the trading session, the shares hit a high of Rs. 745.75, gaining around 1 percent and are currently trading at Rs. 714 apiece.
Looking at the company’s financial performance, the revenue increased by 25 percent from Rs. 895.84 crores during the December quarter to Rs. 1,115.41 crores in the March quarter. In addition, the net profits zoomed by 28 percent from Rs. 81.46 crores to Rs. 104.63 crores during the same period.
As of 31st March 2024, the company has an order book of Rs. 7,10,166 lakh ( Rs. 7,101.60 crores). The company won orders from both public and private sector customers including the Ministry of Railways and the Ministry of Defence.
Earlier, in March 2024, the company secured a contract from the Ministry of Railways for the manufacturing and supply of 2,237 BOSM Wagons aggregating to Rs. 957 crores.
Rail Vikas Nigam Ltd (RVNL)
With a market capitalization of Rs. 1,14,332 crores, the shares of a company that specializes in infrastructure development for the Indian railway network started Monday’s trading session on a higher note at Rs. 508 compared to its previous close of Rs. 491.05. During the trading session, the shares hit a high of Rs. 567.50, gaining around 15 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 551 apiece.
Looking at the company’s financial statements, the revenue zoomed by 43 percent from Rs. 4,689.33 crores in the December quarter to Rs. 6,714.01 in the March quarter. In addition, the net profits jumped by 33 percent from Rs. 358.57 crores to Rs. 478.4 crores during the same period.
Rail Vikas Nigam has achieved a significant milestone with its order book reaching around Rs. 85,000 crores, out of this, Rs. 40,000 crores belongs to the bid portion and Rs. 45,000 crores to the nomination portion. As per the latest data, for FY 2025, the company aims to clock Rs. 23,000 crores in revenue and end the year with an order book between Rs. 92,000 crores to Rs. 1 lakh crore.
Ircon International Ltd
With a market capitalization of Rs. 30,515 crores, the shares of a construction company that specializes in building infrastructure projects, particularly in the railway sector started Monday’s trading session on a higher note at Rs. 311.90 compared to its previous close of Rs. 307.75. During the trading session, the shares hit a high of Rs. 334.50, gaining around 6 percent and are currently trading at Rs. 323 apiece.
Looking at the company’s financial statements, the revenue zoomed by 30 percent from Rs. 2,884.22 crores during Q3FY24 to Rs. 3,742.71 crores in Q4FY24. In addition, the net profits increased marginally by around 1 percent from Rs. 244.7 crores to Rs. 246.66 crores during the same timeframe.
As of March 31, 2024, the company’s order book stood at Rs. 27,208 crores, out of which 77 percent of orders were received from the railway segment, and the remaining 23 percent of orders were received from the highway and other segments.
Indian Railway Finance Corporation Ltd (IRFC)
With a market capitalization of Rs. 2,61,239 crores, the shares of the financing company started Monday’s trading session on a higher note at Rs. 193.50 compared to its previous close of Rs. 188.23. During the trading session, the shares hit a high of Rs. 206, gaining around 7 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 199 apiece.
Looking at the company’s financial performance, the revenue decreased by 4 percent from Rs. 6,737 crores during the December quarter to Rs. 6,474 crores in the March quarter. On the other hand, the net profits increased by 7 percent from Rs. 1,599 crores to Rs. 1,717 crores during the same period.
As of March 2024, IRFC’s total AUM stood at Rs. 4,64,641.28 crores. The company has a minimal credit risk exposure, with 98.94% of its AUM being exposed to the Ministry of Railways (MoR).
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Railtel Corporation of India Ltd
With a market capitalization of Rs. 17,108 crores, the shares of PSU company started Monday’s trading session on a higher note at Rs. 524 compared to its previous close of Rs. 519.75. During the trading session, the shares hit a high of Rs. 559.40, gaining around 4 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 532 apiece.
Looking at the company’s financial statements, the revenue zoomed by 25 percent from Rs. 668.36 crores during the December quarter to Rs. 832.7 crores in the March quarter. In addition, the net profits increased by 24 percent from Rs. 62.14 crores to Rs. 77.53 crores during the same period.
As per the latest data, the company has a robust order book of more than Rs. 4,700 crores, where more than Rs. 2,000 crores of new orders were received during the current year and is expecting an order inflow to be in the range of Rs. 4,000 to 5,000 crores next year.
Written By Vaibhav Patil
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