Watch out for Texmaco Rail, Good Luck Steel Tubes ahead of Rail Budget: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on railway stocks.

ET Now: How are you positioning yourself ahead of the Railway Budget?

Prakash Diwan: If you see, the most obvious beneficiaries of the Railway Budget announcements have already gained quite a bit of traction and in fact we are recommending booking profits in the likes of Texmaco Rail and stuff. But my sense is there will be a lot of other players which will kind of benefit because this time around the government is not just looking at announcing newer trains and the traditional stuff that we have seen in budgets till now, it could be lot of expansionary mode that the government would be into and which means newer companies, newer players would be able to get some sort of pie out of that. So be it Good Luck Steel Tubes which has recently got commissioned for approvals for supplying to the railways from the other two factories apart from Kapurthala, you could have CEBBO reviving itself because of the kind of supply approvals that it has received. So these are companies that you would have to watch out for. In terms of our positioning, we have booked profits wherever we had some holdings and the stocks have run up very-very handsomely in the last couple of months but we would rather wait and watch for the announcements to make our fresh allocations to that sector.