IRFC, RVNL, IRCTC, Other PSU Stocks: Super Railway Stocks Trending Ahead of Budget 2024. What To Expect?

Super railway stocks such as IRFC, RVNL, IRCTC, BEML, Concor, RailTel and other PSU stocks in this sector will be in focus this week, as Mehta Equities expect FM Nirmala Sitharaman for extension of interim budget 2024, when she will announce the Union Budget on July 23. The brokerage believes there is still some steam for fresh upsides in railway stocks.

In its Budget expectations note, Mehta said, "The Union Budget 2024 is expected to be an extension of the Interim Budget itself, and we suspect there is further steam left in the Railway Stocks space on the back of robust order books and improving earnings quality."

The brokerage believes that the future outlook of the railway sector looks on 'RIGHT TRACK'. It added, "We say so because the Indian railway industry is still the backbone of India's transportation system and is also the fourth largest railroad network in the world.

India is projected to account for 40% of the total global share of rail activity by 2050. Mehta pointed out that the railway sector has seen some rapid developments, investments, and support from the Government.

In a big step in modernising rail mobility and connectivity, the FM also announced capital outlay for Railways at Rs 2.55 lakh crore, about nine times the outlay made in FY 2013-14. According to Mehta, the Capex shall help create employment opportunities."

It added, "We suspect, the Indian economy is likely to show strong resilience and should come out with strong growth."

During her interim Budget speech, Sitharaman added that three major economic railway corridor programmes will be implemented. These projects have been identified under the PM Gati Shakti for enabling multi-modal connectivity. These projects are --- 1) Energy, mineral and cement corridors; 2) Port connectivity corridors; and 3) High traffic density corridors.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.