5 Shares That Could Benefit From the Railway Budget 2015-16

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    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.

    1) Kalindee Rail Nirman

    Kalindee Rail Nirman is associated with EPC activities for the for Railway Sector on a turnkey basis.

     5 Shares That Could Benefit From the Railway Budget 2015-16
    Kalindee Rail Nirman Engineers: Quotes, News
    BSE 102.4BSE Quote0 (0.00%)
    NSE 102.7NSE Quote0 (0.00%)
    Titagarh Wagons: Quotes, News
    BSE 85.55BSE Quote1.85 (-2.16%)
    NSE 86.20NSE Quote1.1 (-1.28%)
    The company provides solutions in fields of Signaling, Telecommunications, Track and Information Systems.

    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.

    2) Kernex Microsystems

    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.

    3) Titagarh Wagons

    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.

    5) Indian Hotels

    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.

    GoodReturns.in

    Read more about: railway budget 2015
    Story first published: Friday, February 27, 2015, 8:56 [IST]
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