Accumulate rail stocks for long term: Ashit Suri

Ashit Suri, Fundamental Research Analyst, JV Capital Services

You have already pointed out Titagarh and Texmaco in an oblique or an indirect fashion. Are there any other gainers who could look at opportunities in Railways directly or indirectly through this kind of a budget announcement?

Anything that we would look at would be long term play because I am looking at the overall market context right now. The momentum play is over; most of these stocks are at higher valuations if you are looking at close to 20 PE levels. Today with the markets having corrected on low volumes and lack of interest, lot of midcap and small cap stocks are trading in single PE levels. It is a very good budget, populous budget with lot of promise going ahead but at this point of time I would not advice being euphoric and getting into these stocks at these levels while there are lot of other spaces especially in the small and midcap to get in. I would advice caution and then look at some of these strong fundamental players like Concor, BEML or a Titagarh Wagons and Texmaco on corrections and that's an accumulate call for long term.