On the Right Track: 3 railway stocks aiming for up to 32% gains

The railway sector is poised for a meaningful pickup in capital expenditure (capex), said Antique Stock Broking. According to the brokerage, the sector is likely to see unprecedented growth in investment with the government’s focused initiatives to boost capital spending.

There is a strong push towards localization across various sectors, and railways, too, stand to benefit from it. Railway equipment and EPC companies are expected to grow revenue and earnings at 15% and 19% over FY23–26E, respectively. Railways remain a high-growth sector. However, many stocks continue to trade at reasonable valuations.

Here are the brokerage's top railway stock picks. Take a look: ( Source: Antique Stock Broking)

Market Cap: Rs 13,600 crore
Rating: Buy
CMP: Rs 142
Target Price: Rs 176
Upside Potential: 24%

Market Cap: Rs 11,800 crore
Rating: Buy
CMP: Rs 481
Target Price: Rs 621
Upside Potential: 29%

Market Cap: Rs 9,900 crore
Rating: Buy
CMP: Rs 770.5
Target Price: Rs 1,013
Upside Potential: 32%