Vande Bharat Sets Railway Stocks Zooming
With an ambitious goal to manufacture 400 Vande Bharat trains in India by the end of 2024-25, the Ministry of Railways has signed contracts with private and government owned companies from India and other countries. The mega deals saw the share prices of these companies soaring and with these contracts pumping in long term money with these companies, one can expect better and stronger results for the stakeholders and the investors.
Here is a look at the companies who have received major chunk of the contract and will see their stock prices soaring -
Rail Vikas Nigam (RVNL) - Incorporated by the government of India in 2003, RVNL has been on a high for quite some time as it has been bagging some major contracts from the railways. On 17 June, the company’s shares were up by 1.27 per cent from the previous closing price of Rs 122.50 to Rs 123.50. It is a small-cap company with a market value of Rs 25,760 crore. RVNL is engaged in implementing various types of Rail infrastructure projects such as gauge conversion, new lines, railway electrification, and bridges.
As per information, RVNL and Russia’s CJSC Transmashholding have joined hands to manufacture 200 vande bharat trains. The government of India handed this contract in the fourth quarter of 2022 worth Rs 58,000 crores. The company has also received a contract to manufacture, supply, and maintain 120 trains for the next 35 years.
Bharat Heavy Electricals (BHEL) - An undertaking of the government of India, BHEL is engaged in the manufacturing of integrated power plant equipment, and the company caters to domestic and international clients.
Indian railways awarded a contract to BHEL worth Rs 23,000 crore for the supply of 80 sleeper class vande Bharat trains, as well as maintenance for the next 35 years.
BHEL and Titagarh Wagons are going to collaborate together on the trains’ final integration, testing, commissioning, and maintenance purpose and their consortium has bagged a contract worth Rs 24,000 crore.
The company’s stocks were trading at Rs 83.65 on 14 June, down 1.70 percent from the previous close price of Rs 84.85, It is a Mid-cap company with a market capitalisation of Rs 29,162 crore.
BEML - Formerly Bharat Earth Movers, BEML is an Indian public sector undertaking which manufactures a variety of heavy equipment, such as that used for earth moving, railways, transport and mining. It also provides coaches for the metro and Indian Railways. The company’s shares were trading at Rs 1,510.85 on 14 June, up 0.84 percent from the previous close price of Rs 1,497.70. It is a small-cap company with a market capitalisation of Rs 6,304 crore.
BEML received a letter of acceptance from Indian railways for the design, manufacture, and commissioning of 10 Vande Bharat coaches worth Rs 675 crores in the first quarter of FY23.
