The largest rail network in Asia and the second largest in the world run by a single government is Indian Railways. Every day, the railway transports 3 million tons of freight through more than 7,421 cargo trains.
The Indian Railways has lined up a plan to purchase new trains worth Rs 1 lakh crore over the next few years to serve the rising demand in passenger travel said Union Railways Minister Ashwini Vaishnaw. The national transport has spent over 70 percent of the Rs 2.4 lakh crore capital budget for FY24.
The goal is to replace older rolling stock for which 7,000-8,000 new train sets will be needed. Tenders for the same will be called in the next 4-5 years. This will involve floating train procurement tenders worth around Rs 1 lakh crore which will be honored over the next 15 years by replacing the older rolling stock
The government will need Rs 12 lakh crore in the Indian Railways to serve the current level of economic growth by 2030. The Indian Railways is currently running 10,754 train daily trips, carrying about 700 crore passengers annually, and plans to add 3000 more train trips to bring down the waiting list to zero.
Here are the stocks that can benefit from the Rs 1 lakh crore investment plan in Indian railways.
Indian Railway Finance Corporation Ltd
With a market capitalization of Rs 1,23,745.68 Crores, The shares of Indian Railway Finance Corporation Ltd closed at Rs 94.69 a share, an increase of 2.21 percent from the previous closing price of Rs 94.64 a share.
The stock gave a 188 percent return in six months and a 195 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.95 Lakhs in a year.
The total amount disbursed for FY 2022–2023 was Rs 32,392.63 crores, of which Rs 17,000 crores were used to fund rolling stock and Rs 15,392.63 crores were used to finance railway projects under the EBR–IF.
Titagarh Rail System Ltd
With a market capitalization of Rs 14,336.70 Crores, The shares of Titagarh Rail System Ltd closed at Rs 1,064.55 a share, an increase of 5.16 percent from the previous closing price of Rs 1,008.00 a share.
The stock gave a 127.26 percent return in six months and a 127.26 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.27 Lakhs in a year.
Titagarh Rail System Ltd raising funds of Rs 700 crores through QIP by alloting 75,02,679 Equity Shares at an issue price of Rs. 933 per Equity Share to eligible shareholders.
Texmaco Rail & Engineering Ltd
With a market capitalization of Rs 6,746.75 Crores, The shares of Texmaco Rail & Engineering Ltd closed at Rs 176.00 a share, an increase of 2.86 percent from the previous closing price of Rs 171.10 a share.
The stock gave a 165.81 percent return in six months and a 221.79 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 3.21 Lakhs in a year.
An order worth approximately Rs. 1374.41 crores has been given to the company by Texmaco Rail & Engineering Ltd. for the production and supply of 3,400 BOXNS wagons.
Ircon International Ltd
With a market capitalization of Rs 16,167.47 Crores, The shares of Ircon International Ltd closed at Rs 171.00 a share, a decrease of 0.09 percent from the previous closing price of Rs 172.05 a share.
The stock gave a 107.22 percent return in six months and an 181.60 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.81 Lakhs in a year.
The modification to the company’s articles of association regarding the delegation of authority to the Board and other administrative powers was approved by the Ministry of Railways and the Company’s Members due to IRCON’s designation as the Department of Public Enterprises and its Navratna status.
Rail Vikas Nigam Ltd
With a market capitalization of Rs 38,176.72 Crores, The shares of Rail Vikas Nigam Ltd closed at Rs 183.10 a share, an increase of 0.72 percent from the previous closing price of Rs 181.80 a share.
The stock gave a 48.88 percent return in six months and a 160 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.60Lakhs in a year.
Rail Vikas Nigam Ltd. wins the lowest bid (L1) for the Rs. 543 crore project that includes the partial design and construction of five elevated metro rail stations and an elevated viaduct.
Written by:- Abhishek Singh
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