The Indian Railways received a gross budgetary support of Rs. 2.52 lakh crore, which reflects an increase of 5 percent from the previous year. This funding is aimed at enhancing the railway infrastructure and services.
The total capital expenditure (capex) for the railways was set at Rs. 2.62 lakh crore, marking an 11.1 percent rise compared to the interim budget presented earlier in 2024.
Railway Minister Ashwini Vaishnaw stated that out of the total budget allocation, Rs. 1.08 lakh crore will be used to boost railway safety in 2024-25, focusing on upgrading old railway tracks, improving signalling systems, creating flyovers and underpasses, and installing the Kavach automated safety system on the Indian Railway network.
Here are a few railway stocks with high order book of up to Rs. 27,000 crores as of the June quarter of FY24-25:
RailTel Corporation of India Limited
With a market cap of Rs. 14,654 crores, the stock surged by 1.4 percent to Rs. 471 on BSE, during the trading session of Thursday.
As of July 2024, RailTel’s order book is valued at Rs. 4,682 crores. Of this total, Government Nomination orders account for 22.4 percent with a value of Rs. 1,047 crores, while Tender orders make up the majority at 75.7 percent, totalling Rs. 3,546 crores. Private orders contribute the remaining 1.9 percent, amounting to Rs. 90 crores.
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The total income of RailTel Corporation increased by a CAGR of 29 percent to Rs. 2,622 crores in FY24, as against Rs. 1,578 crores in FY22.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 19.3 percent from Rs. 468 crores in Q1 FY24 to Rs. 558 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 38 crores to Rs. 49 crores, indicating a rise of nearly 29 percent.
The stock has delivered multibagger returns of nearly 108.3 percent in one year, and around 29.5 percent of positive returns year-to-date.
Incorporated in 2000, RailTel Corporation of India Limited is one of the largest neutral telecom infrastructure providers in India owning a Pan-India optic fibre network on exclusive Right of Way (ROW) along Railway track.
RailTel is at the forefront of providing nationwide Broadband Telecom & Multimedia Networks in all parts of the country in addition to the modernization of Train operations and administration network systems.
Ircon International Limited
With a market cap of Rs. 21,058 crores, the shares of a Navratna public sector enterprise and a leading turnkey construction company in the public sector surged by around 1.6 percent on BSE to Rs. 230.7 on Thursday.
As of July 2024, the company has a strong order book totalling Rs. 26,034 crores. Notably, about 51 percent of the total order book was secured on a competitive bidding basis.
In the railway sector, the company has excelled, securing orders worth Rs. 20,420 crores, which constitutes 78.4 percent of the total. The highway segment accounts for 21.2 percent of the order book, with orders valued at Rs. 5,531 crores. The remaining 0.4 percent, equivalent to Rs. 83 crores, comes from various other segments.
The company has reported a decline in revenue from operations, with around a 17.3 percent YoY fall from Rs. 2,764 crores in Q1 FY24 to Rs. 2,287 crores in Q1 FY25. However, the net profit increased by nearly 20 percent YoY from Rs. 187 crores to Rs. 224 crores, during the same period.
The stock has delivered positive returns of nearly 60.6 percent in one year, as well as around 28.5 percent returns year-to-date.
Ircon International Limited started as a railway construction company and diversified progressively as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, and others.
Titagarh Rail Systems Limited
With a market cap of Rs. 16,905 crores, the shares of a leading comprehensive mobility solution provider with a strong presence in India and Italy surged by around 1.6 percent on BSE to Rs. 1,294.25 on Thursday.
As of June 2024, Titagarh Rail’s total order book stood at Rs. 27,443 crores. This includes Rs. 14,117 crores in direct orders to the company and Rs. 13,326 crores from joint ventures (JVs).
The direct orders of Rs. 14,117 crores include Freight Rolling Stock (including Ship Building), which accounts for 51.9 percent with orders valued at Rs. 7,324 crores, while Passenger Rolling Stock, makes up the remaining 48.1 percent with orders totalling Rs. 6,793 crores.
For the JV share of orders valued at Rs. 13,326 crores, the Vande Bharat project with BHEL represents 52.7 percent, totaling Rs. 7,026 crores, while Wheelsets with Ramakrishna Forgings Ltd. contributes the remaining 47.3 percent, amounting to orders of Rs. 6,300 crores.
The company has reported a marginal decline in revenue from operations, with around a 0.8 percent YoY fall from Rs. 911 crores in Q1 FY24 to Rs. 903 crores in Q1 FY25. However, the net profit increased by 8 percent YoY from Rs. 62 crores to Rs. 67 crores, during the same period.
The stock has delivered positive returns of nearly 63.3 percent in one year, as well as around 20.4 percent returns year-to-date.
Titagarh Rail Systems Limited is mainly engaged in the business of manufacturing and selling freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment & bridges, ships, and more.
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Written by Shivani Singh
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