Railway stocks are drawing significant attention on July 23 as Finance Minister Nirmala Sitharaman prepares to present her seventh consecutive Budget, marking the start of Modi 3.0. The government is expected to prioritize infrastructure spending, with increased allocations for railways anticipated.
CareEdge Ratings predicts a budgetary allocation of approximately ₹3 lakh crore for railways, a 25% rise from the previous year. This increase is likely to support safety improvements, enhance travel quality, and accelerate infrastructure development.
Key stocks in the railway sector are in focus today:
– IRCTC: With a boost in railway infrastructure and digital initiatives expected, IRCTC could see increased revenue from e-ticketing and catering services. However, the stock has risen less than 3% in the past three months.
– Container Corporation of India (CONCOR): As a major player in multimodal logistics, CONCOR could benefit from enhanced trade facilitation and improved supply chains. The stock has declined by more than 8% in the past month.
– Titagarh Rail Systems: Specializing in manufacturing railcars and defence vehicles, Titagarh Rail might see growth from increased defence orders and infrastructure projects. The stock has gained over 70% in the past three months.
– Texmaco Rail: Known for its wide range of railway products and EPC services, Texmaco Rail stands to benefit from higher railway infrastructure spending. The stock has risen more than 26% in the past month.
– Rail Vikas Nigam Ltd (RVNL): Engaged in major railway infrastructure projects, including the Mumbai-Ahmedabad high-speed rail, RVNL’s stock has surged 144% in the last three months, following a recent MoU with an Israeli company.
