4 railway stocks to consider ahead of Union Budget 2025

Sunny Agrawal of SBI Securities said the entire railway story is well-discovered and there may not be any cutting down on spending by the government in the forthcoming Union Budget 2025, scheduled to be presented on February 1 (Saturday).

"The railway sector will remain under focus for the next three to five years. Both passenger- and wagon-side segments will be in focus. At the current juncture, the railway wagon pack as a story looked much better. And, Titagarh Rail Systems Ltd, Texmaco Rail & Engineering Ltd and Jupiter Wagons Ltd are sitting on a good set of order books. In terms of execution, we expect these companies to start percolating from the fourth quarter (Q4 FY25) or next quarter (Q3 FY25) onwards. FY26-27 looks pretty robust on the railway wagon side," the market expert told Business Today on Tuesday.

"Coming to the engineering, procurement and construction (EPC) side, RVNL (Rail Vikas Nigam Ltd) is a relatively better play, wherein we've seen an around Rs 1,500-2,000 crore profitability. It is relatively a safer bet compared to the other PSU within the railway EPC side," he further stated.

All of these four above-mentioned rail counters settled higher today. Texmaco Rail, Titagarh Rail, Jupiter Wagons and RVNL shares gained 3.54 per cent, 2.87 per cent, 2.33 per cent and 1.52 per cent, respectively.

Meanwhile, Indian equity benchmarks took a breather today after witnessing a sharp cut in the previous session. Domestic indices staged a mild recovery led by gains in metals, pharma, healthcare and energy stocks. The 30-share BSE Sensex pack rose 234 points or 0.30 per cent to close at 78,199 and the broader NSE Nifty index moved 92 points or 0.39 per cent higher to finish at 23,708. Broader market (mid- and small-cap) shares were also positive. The fear index, India VIX, tumbled 6.32 per cent to 14.66.

18 out of 19 sector gauges -- compiled by the NSE -- finished in the green. Sub-indexes Nifty Metal, Nifty Pharma, Nifty Healthcare and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 1.24 per cent, 0.67 per cent, 0.94 per cent and 1.64 per cent, each. Nifty IT, in contrast, shed 0.68 per cent.

Out of 4,086 stocks, 2,624 stocks advanced today. Only 1,355 scrips declined, while 107 stocks remained unchanged. As many as 131 stocks hit their 52-week highs. That said, 101 counters touched their one-year low levels today.