Railway stocks turn the corner, now back on track
Cumulatively, IRCON, RITES and RVNL are holding an order book of close to Rs 1,17,,000 crore, more than 5 times their annual revenue
July 25, 2021 / 10:59 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Railway engineering companies have seen a sharp recovery with the pace of execution reaching pre-COVID levels. While there could be a marginal impact due to the second wave of COVID-19, the companies, on the whole, are confident about earnings growth and execution this year. They expect the momentum to continue in coming months on the back of strong order books and easing of restrictions.
The three major listed PSU railway engineering companies — RITES, IRCON and RVNL — have...