The Railway Budget has been described by analysts as forward looking and optimistic, though the same issue of funding and execution remain. If projects are implemented then the following companies could benefit and hence their share prices.
Kalindee Rail Nirman is associated with EPC activities for the for Railway Sector on a turnkey basis.
The Indian Railways is expanding its network covering a rail addition of 9,400 kms and the aggregate cost for this is around Rs 96,000 crores. This is likely to benefit a company like Kalindee Rail Nirman. Though the share dropped sharply by 4 per cent on Thursday, the more long term prospects look encouraging.
Kernex Microsystems provides a host of service and products to to the Railways, including GPS, Radio and navigation technologies. A huge chunk of electrification for the Railways to the tune of almost Rs 6500 crores is likely to benefit Kernex in the years to come. At the current market price of Rs 45 the share is an ideal pick.
Like Kalindee Rail, Titagarh will benefit from rapid network expansion. As mentioned the railways is expanding its network covering a rail addition of 9,400 kms. The aggregate cost for this is around Rs 96,000 crores. Titagarh Wagons which manufactures a range of wagons for the Railways is likely to be a key beneficiary of this expansion.
4) Thomas Cook
Travel Agencies were offered select coaches to tourist destinations in the Railway Budget 2015-16. This could provide a boost to travel and tour operators like Thomas cook. The Thomas cook Stock is currently prices at Rs 146.
The number of tourism initiatives in the Railway Budget could also provide a boost to major hotel operators like Indian Hotels. While this may not translate into very much, nonetheless, there could be some boost. The Indian Hotels stocks last closed at Rs 109 on the NSE.
Clearly, the Rail Budget 2015-16 has thrown-up a few share buying opportunities.