Railways stocks were soaring higher up to 5 per cent on Tuesday after Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and Indian Railway Finance Corporation Ltd (IRFC) were lifted to the status of Navratna company. With the latest addition, as many as seven listed railway PSU companies have been elevated to 'Navratna' status as highlighted by the Union Railway Minister.
The central government considers CPSEs, which are Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ or ‘very good’ MOU rating in three of the last five years and having a composite score of 60 or above in six selected performance indicators, for the grant of Navratna status.
It has six parameters including net profit to net worth, manpower cost to total cost of production, cost of services, PBDIT to capital employed, PBIT to turnover, earning per share, inter sectoral performance. IRCTC and IRFC were the latest additions as announced on Monday. Interestingly, all seven listed companies of the Indian Railways are now upgraded to 'navratna' status.
Shares of Rail Vikas Nigam Ltd (RVNL) jumped 4.85 per cent to Rs 339.25 on Tuesday, with its total market capitalization nearing Rs 71,000 mark. The stock had settled at Rs 323.55 in Monday's trading session. IRCON International Ltd rallied 4.09 per cent to Rs 146.25 on Tuesday with its total valuations close to Rs 14,000 crore mark. The stock ended at Rs 140.50 on Monday.
IDBI Capital has a 'sell' rating on IRCON International with a target price of Rs 143. The brokerage believes that the company reported a muted Q3 performance, below estimates with weak operating performance. Antique Stock Broking has a 'hold' rating on IRCON with a target price of Rs 152. However, it has given a 'sell' tag for RVNL with a target price of Rs 215.
Shares of IRFC gained 3.69 per cent over its previous close at Rs 111.15 to Rs 115.25 on Tuesday. The company was valued above Rs 1.5 lakh crore. RailTel Corporation of India Ltd advanced 3.08 per cent to Rs 285.75 with a total valuation close to Rs 9,200 crore. Shares of RITES Ltd rose 2.65 per cent to Rs 203.70 with a total valuations close to Rs 9,800 crore. Shares of IRCTC and Container Corporation of India Ltd (Concor) inched up a per cent each in the early trade.
IDBI Capital has a 'buy' rating on IRCTC with a target price of Rs 870 after the company reported a strong set of performance in the December 2024 quarter, while Prabhudas Lilladher has a 'hold' tag on the stock with a target price of Rs 809. Antique has a 'hold' on RITES as well with a target price of Rs 243 apiece.
Concor is looking towards the Varnama terminal to post growth from 4QFY25F. The rise in rail freight cost/ TEUkm dented the Ebitda margin, said InCred Equities with an 'add' rating on the stock with a target price of Rs 1,133. Elara Capital downgraded the Concor to 'accumulate' from 'buy' with trimmed target price of Rs 839, given challenging macro outlook.