Bullish on Railway-linked stocks: Gaurav Mehta, Ambit Capital

In a chat with ET Now, Gaurav Mehta, VP, Institutional Equities, Ambit Capital, shares his views on Railway Budget. Excerpts:

ET Now: What about the railway budget and trades there?

Gaurav Mehta: On railways, clearly there is sufficient progress on the freight corridor. That apart, the focus of this government has been to move expenditure from revenue side to capex side.

From that point of view, we do think capital expenditure in railways will be a big thrust area and lot of private players will be able to participate in this entire railways and associated logistics story. So, there is going to be a capex burst for the railway sector and there will be opportunities.

We shall focus on the relatively front round, well-managed and decent quality companies and there are quite a lot of them in the railway space. So, it does look like a credible place to park your investments in.