Cap good stocks fall as capex allocation remains unchanged

Railway experts including former Railway Board chairman Ashwani Lohani have called for making safety the number one priority at railways.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Capital goods stock fell after the Union Budget kept capex unchanged at Rs 11.11 lakh crore.

Stocks such as Titagarh Wagons, Jupiter Wagons, BEML, RVNL, ABB and Siemens fell around 1-5 percent. At 1 pm, Titagarh Wagons was trading at Rs 1,568.65, around 3 percent lower, RVNL was trading at Rs 600, around 3.8 percent lower and ABB at around Rs 7,500, around 2.55 percent lower than open.

The segment is trading at high valuations with major companies trading at more than 80 times their one-year forward earnings.

Prabhudas Lilladher's Anwani said that while valuations have been quite high, particularly compared to averages of the past five to ten years, with increases of 50 to 80 percent in some cases, the macro themes within railways, industrial equipment, and power equipment remain strong.

In railways, particularly, there has been a rise in valuations but also a significant demand, he noted.

In the pre-Budget conversations, analysts told Moneycontrol that they expected the government to continue with its capex plan of Rs 11.1 trillion for FY25 with a heightened focus on Production-Linked Incentive (PLI) scheme among other things.