Rail related stocks in focus; Titagarh Wagons, Texmaco Rail surge 20%

Titagarh Wagons logo. Photo: titagarh.in
Shares of railway related stocks such as Titagarh Wagons, Texmaco Rail & Engineering, Cimmco, Hind Rectifiers and Commercial Engineering & Body Builders Company have rallied up to 20% on the BSE.

According to a PTI report, the railway is looking at 4,000 km of track renewal in each of the next two financial years --2018-19 and 2019-20. Its estimated cost for 2018-19 is a little above Rs 100 billion.

Among the individual stocks, Titagarh Wagons, the second largest freight wagon manufacturer in India, is locked in the upper circuit of 20% at Rs 86.55 on the BSE on the back of an over four-fold jump in trading volumes. Till 02:07 pm; a combined 1.56 million equity shares changed hands and there were pending buy orders for 302,974 shares on the BSE and NSE.

Texmao Rail & Engineering has rallied 19% to Rs 70, after surging 20% (Rs 70.80) on the BSE in intra-day trade. The trading volumes on the counter more than doubled with a combined 1.68 million equity shares changed hands on both the exchange so far.

Texmaco Rail & Engineering manufactures a diverse range of products viz. railway freight cars, hydro-mechanical equipment & industrial structurals, steel castings, and pressure vessels, etc.

The Indian Railways' global tender worth Rs 25 billion for the supply of long rails will open today; the PTI report suggested quoting sources in the ministry. CLICK HERE TO READ FULL REPORT

Most of these stocks have underperformed the market by falling up to 50% in past six months, as compared to 2% rise in the S&P BSE Sensex.