The Ministry of Railway was allocated a record high Rs 2,40,000 crore in budgetary support in the Union Budget 2023-24. The all-time high allocation, which was nearly nine times compared to the allocations made in 2013, has given a push to railway infrastructure in the country this year.
A massive Rs 1.85 lakh crore had been allocated for capital expenditure in the current fiscal and the Indian Railways plans to invest at least Rs. 7 Trillion over the next decade
India has the fourth largest railway system in the world which moves 33 percent of the total freight in the country. It is rapidly progressing to accomplish 100 percent electrification and become the largest green railway network in the world. The Indian railways consist of a total track length of 1,26,366 km with 7,335 stations.
The Piotroski score is a discrete score that ranges between zero and nine reflecting nine different criteria used to determine a firm’s strength. It is used to determine stocks with the best value, with nine being the best and zero being the worst.
The rail stocks are expected to keep the momentum in 2024 as well, as the sector is likely to see higher allocation in the next year’s budget. Here are some of the multi-bagger railway stocks with a high Piotroski score of 7.
Titagarh Rail Systems
Titagarh Rail Systems Limited (TRSL) is one of the largest private-sector manufacturers of railway wagons and an established player in passenger coaches, it offers mobility solutions with its prominent presence in both the Passenger and Freight Rail Systems including railway wagons, components, passenger coaches (EMU/MEMU), and Metro Coaches.
In the day’s trade, the shares of Titagarh Rail Systems Limited closed at Rs. 1,043.70, up 1.99 percent from its previous day’s close price of Rs. 1,023.35 and its market capitalization of Rs. 14,033 Crores. It has delivered multi-bagger returns of 123 percent in a year and it has a high Piotroski score of 7.
The company’s revenue from operations grew 89.41 percent from Rs. 1,467.5 Crores in FY22 to Rs. 2,779.59 Crores in FY23, accompanied by a loss of Rs. 0.33 Crore to a profit of Rs. 130.2 Crores.
It has reported a return on equity (ROE) of 14.91 percent and a return on capital employed (ROCE) of 18.58 percent, it is making good returns on its equity and capital employed.
Railtel Corporation of India
Railtel Corporation of India Limited is a Miniratna PSE engaged in providing neutral telecom infrastructure throughout India. It provides a range of telecom services like virtual private networks, internet leased in line, etc, and other project work services like national optic fiber network and other specific telecom and IT services.
In the day’s trade, the shares of Railtel Corporation of India Limited closed at Rs. 336.50, up 14.67 percent from its previous day’s close price of Rs. 293.45 and its market capitalization of Rs. 10,785 Crores. It has delivered multi-bagger returns of 165 percent in a year and it has a high Piotroski score of 7.
The company’s revenue from operations grew 26.8 percent from Rs. 1,548.45 Crores in FY22 to Rs. 1,936.51 Crores in FY23, accompanied by profits of Rs. 208.94 Crores to Rs. 189.07 Crores.
It has reported a return on equity (ROE) of 11.91 percent and a return on capital employed (ROCE) of 16.81 percent, it is making decent returns on its equity and good returns on its capital employed.
Written by: Bharath K.S
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