Vande Bharat: Railways stocks Jupiter Wagons, Titagarh Rail Systems, Siemens & RVNL among key beneficiaries of Budget 2024, says SAMCO

Railways stocks such as Jupiter Wagons Ltd, Titagarh Rail Systems Ltd, Siemens Ltd and RVNL  Ltd could be key beneficiaries of the Finance Minister Nirmala Sitharaman's Budget announcements, where she said 40,000 normal railway bogies will be converted to Vande Bharat standards. The FM, while suggesting an allocation of Rs 2.55 lakh crore towards railways, announced three new corridors for the railways - Energy, Mineral and Cement corridor, Port Connectivity Corridor and a High Traffic Density Corridor, which are seen cutting costs and improve efficiency.  The projects, Sitharaman in her speech said were identified under the PM Gati Shakti for enabling multi-modal connectivity.

"They will improve logistics efficiency and reduce cost," she said. The resultant decongestion of the high-traffic corridors will also help in improving operations of passenger trains, resulting in safety and higher travel speed for passengers. Together with dedicated freight corridors, these three economic corridor programmes will accelerate our GDP growth and reduce logistic costs, she said.

Sanjay Moorjani, Research Analyst at SAMCO Securities said that after the success of Vande Bharat trains, the FM suggested that around 40,000 more rail bogies will be converted to Vande Bharat coaches. Stocks such as Jupiter Wagons, Titagarh Rail Systems, Siemens, RVNL would benefit from the manufacturing of Vande Bharat trains.

"This will further create job opportunities while reducing travel time as well as increasing tourism across the country," he said.

That said, most railways-linked stocks fell following the FM's announcements. Texmaco Rail Engineering was trading 0.43 per cent lower at Rs 218.65. Titagarh Rail Systems Ltd shares were down 1.44 per cent at 1078.25. Rail Vikas Nigam Ltd (RVNL) fell 1.09 per cent to Rs 304.95. Jupiter Wagons added 0.84 per cent to Rs 407.15. Siemens Ltd declined 0.86 per cent to Rs 4,108.70.

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