Skip to main content

Select stocks rise as rail budget signals new initiatives

Stocks of the companies that cater to Indian railways gained after Indian Railways Minister Lalu Prased Yadav on 26 February 2008 announced some new initiative towards easing infrastructure bottlenecks in the Railways.

Train wagon manufacturing companies Texmaco (up 5% to Rs 1712) and BEML (up 2.70% to Rs 1180), rose after the Railway Budget laid down plans to procure a record 22,000 train locomotives for the coming year. These two companies derive sizable portion of their revenues from from the manufacture of of wagons for the Railways.

Kalindee Rail Nirman (up 1.11% to Rs 475), rose on expectations that the firm may benefit significantly from the setting up of dedicated freight corridors by the Railways. This may translate into topline growth for the company from the next financial year. Kalindee Rail Nirman is a frontrunner in railway related infrastructure works such as construction of new line and gauge conversion.

Kernex Microsystems India rose 5% to Rs 230.30 on expectations that they may benefit from the Government's focus to strengthen railway safety through automatic devices such as anti-collision device (ACD).

Nitin Fire Protection Industries (up 5.64% to Rs 509.05) rose on Railways' proposal to increase anti-fire security measures inside trains. Nitin Fire Protection manufactures fire protection equipments.

Bartronics India (up 5.18% to Rs 235.50) rose on Railways' proposal to extend the usage of smart cards from Western Railways to other rail divisions. Bartronics is a leading provider of smart card-based technology.

MIC Electronics (up 4.72% to Rs 820) rose on Railways' plan to introduce estimated time of arrival (ETA) display on the coaches of long-run trains. MIC Electronics make light-emitting diode (LED) display systems.

Zicom Electronic Security Systems (up 5% to Rs 170.20) rose on Railways' plan to install close circuit television at all important stations. Zicom is a market leader in the electronic security equipment space.

Mundra Port and Special Economic Zone (up 3.11% to Rs 758.50) rose on Railways' proposal to float special purpose vehicle for rail links to Mundra, Kandla and Krishnapatnam ports.

Popular posts from this blog

Bio-fuel has top investors powered up

23RD ,JUNE India's fortune-hunters believe their new-found love for biofuel will pay off. India's well-known investors who are known for their Midas touch have spotted an opportunity in bio-fuel, betting big on ethanol, bio-mass and even bio-fuel equipment makers in India and other parts of the globe. Billionaires Rakesh Jhunjhunwala, C Sivasankaran, Vinod Khosla, founder of Sun Microsystems, and Nemish Shah, the media-shy joint partner of Enam Financial Services, are investing in bio-fuel makers quietly, expecting that bio-fuel will have a big play in the coming years as the world looks for a viable alternative to the fast depleting oil reserves. Jhunjhunwala, who is known for his ability to spot a multi-bagger at a very early stage, recently invested in Hyderabad-based bio-fuel firm Nandan Biometrics.He is also a 10 per cent stakeholder in Praj Industries, which is a bio-fuel technology provider…

up to 8,500% return in 5 years! Investors made a killing in these 30 smallcap stocks

U By Rahul Oberoi, | Updated: Dec 01, 2017, 04.06 PM IST Post a Comment
Efficiency pays in the long run. Among the top smallcap plays on Dalal Street, 30 companies with stable return on equity (RoE) and return on capital employed (RoCE) have surged up to 8,500 per cent over the past five years.

All these companies had a debt-to-equity ratio of less than 1 and have been maintaining RoE and RoCE of over 20 per cent since 2012-13.

Avanti Feeds emerged the chart topper, with an 8,527 per cent gain to Rs 2,596.60 as of November 28 from Rs 30.10 ..

ovember 28 from Rs 30.10 on November 27, 2012. The company’s return on equity for FY17, FY16, FY15, FY14 and FY13 stood at 42.65 per cent, 46.21 per cent, 52.41 per cent, 45.79 per cent and 27.60 per cent, respectively. Avanti also managed to achieve a return on capital employed of over 50 per cent in last four years. Its RoCE stood at 28.59 per cent inRoE measures net income earned for every rupee of shareholder funds, while…

5 dark-horse picks

Kwadrat/ Kwadrat/
If you are a conservative investor, using the mutual fund route is the best way to invest in stocks. But if you are game for some excitement, you might want to dabble directly in stocks, especially small-cap stocks. Stocks that are smaller in size, in terms of market capitalisation, carry higher risk. The reasons are — one, lower traded volume increases price volatility, two, information is usually scarce on these companies, three, business risk is higher since many of these companies are dependent on a single product and four, governance risk is also higher in these stocks. That said, small-cap stocks have the capacity to deliver far greater returns when compared to large-cap stocks. Sample this: there were 16 stocks with market cap more than ₹50,000 crore in January 2009. These stocks delivered an average return of 138 per cent in the last eight years but 4 out of every 10 stocks in this group delivered negative returns. On the ot…