Explore how Indian Railways’ fast-track advancements propel stock values to new heights!
Do you know the name of the first train in India? If not, no worries. We are here to tell you. The first train in India was called ‘Red Hill’. It began operating in 1837. Arthur Cotton started this railway to move granite and materials for building roads.
India’s first passenger train ran between Bori Bunder station in Bombay and Thane on April 16, 1853. This train covered a distance of 34 kilometres.
Indian Railways has come a long way from British rule to today’s modern era. The journey that began with steam engines has now reached the point of having bullet trains. And do you know who else is running at the speed of a bullet train? Well, it’s none other than railway stocks!
Let’s explore more about them.
Indian Railways is taking several initiatives to improve its services and facilities through modernisation. Also, if you remember, railways have the highest-ever CAPEX of Rs 2.40 lakh crore in the Union Budget 2023-24, up 75%.
Since then, the stocks of railway-related companies have been performing well. In the last six months, Texmaco Rail & Engineering Ltd stocks have gained 215.73% in value, Jupiter Wagons Ltd stocks have gained 252.31%, and Titagarh Rail Systems Ltd’s stocks have gained 74.80%.
*Performance from 1st March 2023 to 31st August 2023
Reason Behind the Railway Stocks Rally
According to Business Today, experts say the railway sector is getting a boost because of the significant CAPEX budget, and companies are getting important orders.
So, all these positive developments, including the creation of the Vande Bharat Express and other improvements, have contributed to these stocks being on the fast track.
Recent Developments in Railways
Vande Bharat Express is currently the talk of the town, and as a result, a few other stocks have gained traction because they have received orders for further developing the train.
Before we start, let’s understand a bit about Vande Bharat Express, a semi-high-speed train. And what sets it apart is that it is the first train ever designed and manufactured entirely within India. Now, they plan to introduce a new version of this train with sleeping cabins.
The work to add these sleeping cabins to the Vande Bharat Express is progressing rapidly. The Times of India reported that a big Russian company, TMH, has put down Rs 200 crore as a promise to the railways. As a result, the railways can now make a formal agreement with TMH to construct and manage 120 of these sleeper-equipped Vande Bharat trains.
According to the Economic Times, Railway PSU, RVNL and Russia’s TMH Group have formed a joint venture. This consortium has bid for the supply of 120 trains out of 200 new editions of Vande Bharat sleeper trains. But the consortium is awaiting an agreement with the railways for the supply of trains.
Apart from this, another consortium of central PSUs, Bharat Heavy Electricals Limited (BHEL) and Titagarh Wagons (TWL) has won the tender for manufacturing 80 sleeper Vande Bharat trains.
Indian Railways is taking several initiatives to improve its services and facilities through modernisation. This includes the introduction of new trains like Vande Bharat, platform improvements, digital ticket booking and many other facilities. Large-scale investments are being made in the development of railway infrastructure, including new rail lines and modern railway stations.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned are for information purposes only. This is not an investment advice.