Decongestion plan with 3k trains lifts rail stocks

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By S Jha

New Delhi, November 17: Rail stocks chugged along the street with heads held high even while the RBI shocker on unsecured loans derailed the market momentum. The plan of the Ministry of Railways to eliminate waiting lists by 2027 by introducing 300 trains lifted the sentiments for the rail scrips.

The rail scrips after a spectacular rally had been consolidating for a while. But the trigger to wake them came up amid reports that the Ministry of Railways is mulling to rollout as many as 3000 trains by 2027 to completely eliminate waiting lists. The Railways begins booking for trains 120 days in advance, and the passengers invariably find their trains already booked out when they plan their journey.

With the Railways facing flaks for near stampede like situations at the rail stations and also for jam-packed trains leaving for eastern Uttar Pradesh and Bihar, the reports came that the Ministry would finally eliminate waiting list by 2027. However, the Railways had set the target to eliminate waiting lists by 2020, which was unveiled as a part of vision by former Minister Suresh Prabhu while presenting the Rail Budget in 2016.

The street reacted with enthusiasm that the Railways would be necessitate a massive spending on the expansion of the rail infrastructure. Titagarh Wagons, which has been the most bullish of the rail stocks, spurted by 16 per cent on Friday. IRCON gained almost nine per cent. Rail Vikas Nigam also gained over six per cent. Rail Tel also gained nine per cent. Indian Rail Finance Company also gained over five per cent. Jupitor Wagons was locked in an upper circuit of five per cent. BHEL and BEML, which are also into the manufacturing of the Vande Bharat trains, also gained over two per cent each.

Incidentally, some of the rail scrips have already turned multibagger. Titagarh Wagons is on course to multiply by 10 times in a short span of time. Rail Vikas Nigam has already multiplied by four times in less than two years. Jupitor Wagons has also gained over 350 per cent within one year. IRCON has also extensively gained in a short span of time.