Rail stocks show promise over long term: Ashit Suri

Ashit Suri, Fundamental Research Analyst, JV Capital Services

You have heard the managements of various rail companies like Texmaco, Titagarh Wagons and Hind Rectifiers speaking. They seem hugely positive on the budget, in fact SK Nevatia of Hind Rectifiers gave the budget 8 to 9 ranking on a scale of 10. Somewhere would you change your view of rail stocks even in the near term?

As far as these stocks are concerned, they show a lot of promise over the long term. Rail infrastructure is going to be getting a lot of push. Even going ahead, the intentions are very good, there is a lot of promise, it is going to cater to every company which is involved in this space but we would look at companies which are having proven track records, good healthy orders and good potential going ahead. Also, cash flows companies like CONCOR which are almost debt free. So these are solid companies which one should look at and like I said, one has to look at them in the long term play because near term appreciation is almost ruled out looking at the market overall as of this moment.