Union Railways minister Ashwini Vaishnaw last Friday said the India Railways plans to manufacture 10,000 non-AC coaches in the next two years
By Manoj Sharma,
Shares of four railway companies, including IRFC Ltd, Rail Vikas Nigam Ltd (RVNL), IRCON International, and RailTel, surged up to 15% during the intra-day trade today. The development came as Union Minister of Railways, Information and Broadcasting, Electronics and IT, Ashwini Vaishnaw, last Friday i.e. July 5, 2024, said the India Railways has planned to manufacture 10,000 non-AC coaches in the next two years. The minister also announced 50 new Amrit Bharat Trains, which fulled the rally in the railways stocks today.
Shares of state-owned financial institution IRFC Ltd hit a 52-week high at ₹206 on the BSE today after opening a gap up at ₹192.70. The counter witnessed high volume trade on Monday as 2.4 crore shares were changing hands against the two-week average of 40.55 lakh. At the current share price of ₹202.10 (01.35 PM), the company's m-cap is at ₹2.63 lakh crore.
A multi-bagger stock, IRFC shares have seen a 5-fold rise in its price in the past year. In this calendar year alone, the stock has witnessed a 110.25% rise, while its six-month rise is 101.10%. In the past month and past week, the scrip has seen 16.13% and 16.62% surge, respectively.
Another PSU and civil construction company, Rail Vikas Nigam Ltd, has seen its share price hit a 52-week high today. The stock opened a gap up at ₹508.30 and hit a one-year high at ₹567.75. At 1.30 PM, the stock was trading 14.58% up at ₹561.85 on the BSE as 1 crore shares were changing hands on the counter against 26.4 lakh average in the past two weeks. At the current share price, the company's m-cap stands at ₹1.18 lakh crore.
Railway stocks rally as Ashwini Vaishnaw retains railway ministry; IRCTC, IRCON, RailTel surge up to 6%
RVNL share has also been a multi-bagger, fetching a 362.17% return in the past year. Its year-to-date return stands at 210.33% and 209.83% in the past six months. The share has surged 50.96% and 36.42% in the past month and past week, respectively.
Another civil construction company IRCON International Ltd, a wholly owned entity of the Indian Railways, saw its share price hitting a 52-week high at ₹334.35. The company's m-cap at the current trading price of ₹325.90 stands at ₹30,670.22 crore. IRCON share has seen a 296.84% rise in the past year while giving an 87.14% return in the year-to-date period. In the past six months, one month and the past week, the share has surged 82.12%, 29.90% and 20.04%, respectively.
Shares of other telecom services operator RailTel Corporation of India also hit a 52-week high at ₹559.35 on the BSE, up 6.9% compared to the previous session. At the current share price of ₹537.75, the company's m-cap stands at ₹17,258.46 crore. RailTel has given 309.25% return in the past year; 52.24% in the year-to-date period; 54.90% in the past six months; 39.85% in the past month; and 14.57% in the past week. Formed in September 2000, RailTel provides broadband and VPN services to modernise the train control operation and safety system of railways.
Shares of the tour, travel and catering arm of the Indian Railways, IRCTC, on the other hand, saw a mild rise in its share price at ₹1,037.95, up 1.16%, on the BSE. Railway wagons company Titagarh Rail Systems Ltd saw a decline in share price at ₹1,816, down 0.74% on the BSE.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
66% Indians willing to share data online for better shopping experience: PwC report
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By Shabeeh Azeem
India’s population to peak in 2060s at 1.7 bn before falling 12%: UN
In 126 countries, including India, the population is likely to continue growing through 2054, reaching a peak later in the century or beyond 2100, says the UN report
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Retail inflation for industrial workers cools to 3.86% in May
The all-India CPI-IW for May 2024 rose by 0.5 points to 139.9 points, up from 139.4 points in April 2024.
By Shabeeh Azeem
RBI allows resident Indians to open foreign currency accounts in GIFT City
Indian residents are allowed to remit up to $250,000 (around ₹2.06 crore) per year without any prior approval from the Reserve Bank of India.
Investors are choosing to book profits in railway stocks after the stocks have had a stellar run over the last 12-18 months. IRFC shares have declined 9% from last Friday's high of ₹224. Shares of RVNL, which are down for the fourth day in a row, are also down 9% from their recent record high of ₹647.
Why Did Warren Buffett Buy the Railroad? Buffett bought BNSF Because he believes railroads remain essential to American prosperity. Buffett rejects short-term investment ideas that promise immediate gains. Instead, he adopts a long-term strategy of investing in a business and enhancing its performance over time.
Rail is already the most efficient way to more freight as a gallon of fuel can move a ton of freight for 470 miles on average. The fuel efficiency makes it also environmentally positive to move things with trains. We have discussed how railroads offer a moat and growth.
That said, railroad stocks are ones that investors buy for the long haul (no pun intended). And the market projected growth rate for railroads is expected to increase at an annual growth rate of 5%. That gives investors a good reason to look for railroad stocks to buy.
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