IRFC, RVNL, other rail stocks rally up to 3% ahead of Budget
Railway stocks surged ahead of Budget 2025, with IRFC and RVNL gaining up to 3% on expectations of increased capital expenditure. The government may announce a Rs 45,000 crore Kavach safety package, benefiting key railway infrastructure firms. The...
By Surbhi Khanna, ET Online |
ETMarkets.com
The shares of Indian Railway Finance Corporation (IRFC) and Rail Vikas Nigam (RVNL) rallied up to 2-3% on BSE ahead of Budget to day’s high of Rs 155.5 and Rs 501.55 respectively. The investors anticipate a significant increase in capital expenditure for the railways sector in the upcoming Budget.
The government is expected to announce a special package for the technology designed to prevent train collisions and derailments.
Elara has estimated the Kavach opportunity size at Rs 45,000 crore and recommended tracking stocks such as HBL Engineering, Kernex Microsystems, Titagarh Rail Systems, Jupiter Wagons, Texmaco Rail, RVNL, IRCON, Kalpataru Projects, Kaynes Technology, Syrma SGS Technology, BHEL, Concord Control Systems, and Quadrant Future Tek.
According to the market sources, the Ministry of Railways is set to receive the largest share of capital expenditure in the upcoming Budget, surpassing the traditional top recipient, the Ministry of Highways.
The shift is driven by the railways' improved Budget utilization in FY25 and an ambitious pipeline of infrastructure projects, including corridor development and station modernization.
According to a report from Nuvama, the focus on railways will mark a significant departure from previous trends, with railways receiving larger allocations relative to highways in FY26. Last year, the highways sector was allocated Rs 2.7 lakh crore, while railways received Rs 2.5 lakh crore — a historic high for the sector. However, this year, railways are expected to see a further increase, as the government seeks to capitalize on the sector's environmental and logistical advantages.
Rail freight has the potential to replace hundreds of trucks, significantly reducing greenhouse gas emissions by up to 75%, further supporting the case for increased investment in the sector, the report further mentioned.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The government is expected to announce a special package for the technology designed to prevent train collisions and derailments.
Elara has estimated the Kavach opportunity size at Rs 45,000 crore and recommended tracking stocks such as HBL Engineering, Kernex Microsystems, Titagarh Rail Systems, Jupiter Wagons, Texmaco Rail, RVNL, IRCON, Kalpataru Projects, Kaynes Technology, Syrma SGS Technology, BHEL, Concord Control Systems, and Quadrant Future Tek.
According to the market sources, the Ministry of Railways is set to receive the largest share of capital expenditure in the upcoming Budget, surpassing the traditional top recipient, the Ministry of Highways.
The shift is driven by the railways' improved Budget utilization in FY25 and an ambitious pipeline of infrastructure projects, including corridor development and station modernization.
According to a report from Nuvama, the focus on railways will mark a significant departure from previous trends, with railways receiving larger allocations relative to highways in FY26. Last year, the highways sector was allocated Rs 2.7 lakh crore, while railways received Rs 2.5 lakh crore — a historic high for the sector. However, this year, railways are expected to see a further increase, as the government seeks to capitalize on the sector's environmental and logistical advantages.
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Rail freight has the potential to replace hundreds of trucks, significantly reducing greenhouse gas emissions by up to 75%, further supporting the case for increased investment in the sector, the report further mentioned.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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