Explosive Growth in Railway Stocks: What to Expect as Ashwini Vaishnaw Continues in Modi 3.0 Government
With Ashwini Vaishnaw retaining his position as the Railway Minister in the Modi 3.0 government, investors are keenly watching the railway sector, which has delivered extraordinary returns in recent years. Under Vaishnaw’s tenure, stocks like RVNL and Titagarh have seen up to 1,800% returns, making them hot picks for future investments. As the government continues to emphasize infrastructure development, analysts predict sustained growth in the railway and power sectors.
Performance Analysis of Railway Stocks
The past performance of railway stocks under various ministers reveals a robust upward trend, especially under Vaishnaw. Here’s a breakdown of how some key railway stocks have performed:
| Stock | Listing Year | Returns (%) in Vaishnaw’s Tenure |
|---|---|---|
| RVNL | 2019 | 1,066 |
| IRCTC | 2019 | 124 |
| IRFC | 2021 | 627 |
| Railtel | 2021 | 170 |
| RITES | 2018 | 143 |
| Titagarh Railsystems | 2008 | 1,801 |
| Jupiter Wagons | 2010 | 1,522 |
Expert Opinions
Vinit Bolinjkar, Ventura Securities: “The railway sector remains a promising area for long-term investments due to the high demand and government focus. Investors should consider maintaining long positions.”
Amisha Vora, Prabhudas Lilladher: “Despite the recent corrections, the growth potential in the railway sector remains intact. The adjustments in valuations are beneficial for long-term stability.”
Nilesh Jain, Centrum Broking: “The railway sector is experiencing consolidation. Stocks like IRCTC, RVNL, and Railtel are solid picks for adding on declines and holding for future gains.”
Fundamentals Driving Growth
Railway stocks have benefited from increased government spending, expanding order books, and improved earnings. For instance:
- Titagarh Railsystems: Achieved over 1,800% returns with consistent quarterly profit growth. In Q4 FY24, its profit after tax (PAT) rose by 64% YoY to ₹79 crore.
- RVNL: Delivered 1,066% returns with a 26% YoY increase in PAT, reaching ₹433 crore in Q4 FY24.
- Jupiter Wagons: Saw a 153% YoY increase in PAT to ₹104 crore in Q4 FY24.
Future Outlook and Investment Strategy
Given the government’s ongoing commitment to infrastructure, the railway sector is expected to continue its growth trajectory. Investors are advised to monitor these stocks closely and consider them for long-term portfolios.
Conclusion
As Ashwini Vaishnaw continues to lead the railway ministry, the sector remains a fertile ground for high returns. Investors should stay informed about market trends and expert recommendations to make strategic investment decisions.
Source :ET
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