Railway stocks have been on a strong upward trajectory in recent months, with several companies delivering impressive returns.
These stocks are gaining momentum due to robust order book visibility, the government’s focus on improving rail infrastructure, and the anticipation of fresh investments in railway infrastructure development.
Government Initiatives
The Indian government has unveiled a comprehensive strategy to transform the country’s railway sector through massive investments, capacity expansion and technological upgrades. The key initiatives include:
1. Plans to invest over ₹10-12 lakh crore (USD 1.2 trillion) in the railway network over the next five years for projects like high-speed rail, dedicated freight corridors and station redevelopment.
2. Accelerated electrification with 94 per cent of the broad-gauge network now electrified and a target for 100 per cent electrification.
3. Significant focus on passenger safety through measures like the Kavach automatic train protection system and replacement of old tracks.
4. Passenger-friendly initiatives such as a super app, insurance schemes and affordable fares on new Vande Bharat trains.
5. Modernisation of over 1,300 railway stations through public-private partnerships to provide world-class amenities.
The Indian government’s massive investments, policy support and focus on railway electrification and capacity expansion are driving strong growth and stock performance for railway companies. One of the companies we are focusing on in this article is Texmaco Rail and Engineering Ltd.
About the Company
Diese Geschichte stammt aus der July 15, 2024-Ausgabe von Dalal Street Investment Journal.
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Diese Geschichte stammt aus der July 15, 2024-Ausgabe von Dalal Street Investment Journal.
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