IRFC, Ircon, RVNL, IRCTC Titagarh, Texmaco among railway shares in focus ahead of Budget 2024

Indian Railway Finance Corporation Ltd (IRFC), Rail Vikas Nigam Ltd (RVNL), IRCON International Ltd, Titagarh Rail Systems Ltd, Texmaco Rail & Engineering Ltd were some of the railways-linked stocks that were trading higher ahead of the interim Budget 2024, on hopes on higher capex allocation to the sector in FY25.

Sharekhan is expecting an increase in outlay towards railways from Rs 2,40,000 crore, with higher allocation towards track optimisation and rolling stock acquisition. The covernment can allocate higher resources towards safety, revamping existing tracks and bridges, high speed railway corridor and upgradation of stations, Sharekhan said.

At 9.30 am, shares of IRFC were trading 1.81 per cent higher at Rs 178.20 on BSE. RVNL gained 1.2 per cent to Rs 312. IRCON International climbed 2.42 per cent to Rs 243.10. Titagarh Rail Systems edged 0.24 per cent to Rs 1,096.65. IRCTC added 0.93 per cent to Rs 987.40. Texmaco Rail was up 1.28 per cent at Rs 222.40.

"There will be a tremendous focus on railways as they are important for goods transportation. The India to Europe railway will add to the trajectory," said Shailesh Saraf, smallcase Manager, MD - Dynamic Equities.

Nuvama Institutional Equities is expecting a robust capex outlay growth of 15–20 per cent YoY for railways, as the focus shifts to rolling stock, safety, new tracks laying, etc over coming years against electrification in last decade. "Even if Railways' capex allocation remains stagnant, we still see higher allocation towards the private sector versus self capex ordering done earlier," it said.

DRChoksey FinServ in its preview note said that 400 new trains including the most modern Vande Bharat trains in 3 years will transform Railways and platforms.

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