Track record of railway infra companies good: Seshadri Bharatan

What are you hearing on the railway infra stocks? There is a rumour of opening up of this space. Is that what you are hearing and two, if that happens is that a big negative for the stocks to take the kind of turn that they did yesterday?

My sense is that yesterday what happened was more from profit booking angle. While there are rumours that fresh competition might come in but you look at the track record of most of these companies, companies like Texmaco, companies like Titagarh Wagon, companies like Stone India, companies like Kalindee Rail etc., they definitely have an advantage, there is clearly an entry barrier lead time of around three to five years.

So yes, competition will take some time to catch up at all. The railway opens up fresh business for new companies, etc. But having said that, yesterday the sense that we have got from markets, it was more from profit booking like investors who had entered at earlier levels were trying to book profits at higher levels.