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Railway budget 2007: Stocks on track

Published on Mon, Feb 26, 2007 at 12:52 | Source : Moneycontrol.com

Updated at Thu, Mar 01, 2007 at 11:57

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As Railway Minister, Lalu Prasad Yadav, presents his Railway Budget 2007,

stocks like BEML , Kalindee Rail , Gateway Distriparks , Kernex Micro , Texmaco , Hind Rectifiers , Stone India , Alstom , Crompton Greaves , are all trading strong.

The above-mentioned stocks are up by 3%, 7%, 4.5%, 5%, 5.5%, 6% 8%, 1.3%, 2% respectively.

The budget proposes to come out with 838 new carriages in popular passenger trains. 11000 new wagons are needed for high density line. This will impact companies like BEML, Kalindee, Texmaco, Stone India, Hind Rectifiers positively.

Budget Impact	Stocks	Cls Price (Rs) up
To benefit from additional demand for wagons	BEML	1128
To benefit from replacement of old wagons	Stone India	159.40
To get a substantial share of freight corridor proj	Kalindee Rail	175.85
To get a substantial share of freight corridor proj	Kalindee Rail	175.85
To see increased requirements from rail budget	Hind Rectifiers	800.10
Govt's moves on public-private participation positive	Gateway Distri	166.90

Hind Rectifiers manufacturers a wide range of products used for railways, AC electric locomotives and AC electrical multiple units. The management expects to see increased requirements from the budget.

Kalindee Rail is engaged in the manufacture and installation of signalling and telecommunication equipment and execution of gauge conversion projects of the Indian Railways. The company expects some contracts to be awarded by FY08 and they believe that they will get a substantial share of the Freight Corridor Project. The project is of Rs 30000 cr.

Stone India,which manufactures various equipment for the railways like alternators, air brakes and brake regulators, expects another Rs 20-25 cr to be added due to new wagons.

According to railways minister, railways have made a profit of Rs 20,000 crore versus Rs 14700 crore, the previous year. He also informs that they have recorded high surplus without any burden on the common man. Also, passenger traffic is up 14% during Apr-Dec 2006.