- Railway stocks soar ahead of Budget 2023-24, delivering exceptional returns.
- Indian Railway Finance Corporation Limited (IRFC) emerges as a star performer.
- IRFC’s market share jumps over 9%, hitting a fresh 52-week high.
- Impressive market capitalization of Rs 2.3 lakh crore for IRFC.
- IRFC shares surge by 9.2% to reach a record high of Rs 192.80.
- In the last 6 months, top-performing Railway PSU stocks yield over 400% returns.
- IRFC’s market cap increases by Rs 80,000 crore in just 15 trading sessions.
- Extraordinary 61% growth in IRFC’s market cap over the last one year.
- Investors witness a 400% return in 6 months, turning Rs 1 lakh into over Rs 5 lakh.
- Budget 2023-24 outlook: Anticipated 25% increase in Railway CAPEX.
- Expectations of launching 300-400 Vande Bharat trains, enhancing market sentiment.
- Speculation of a substantial doubling in the security budget for Railways.
- The blog highlights the potential for substantial returns in railway stocks amid market trends.
Robust returns in railway stocks ahead of the budget 2023-24 :
Investing in the stock market always involves risks, but for those that walk cautiously, the benefits can be enormous. Railway stocks, in particular, have proven profitable in the run-up to Budget 2023-24. The government’s emphasis on railway infrastructure development has spurred some railway Public Sector Undertaking (PSU) equities to record high returns, with some rising by more than 400 percent in just the previous six months.
IRFC Shines as a Star Performer :
Among the top performers is the Indian Railway Finance Corporation Limited (IRFC), a state-owned project financer for the Indian Railways. On January 23, 2024, IRFC’s market share increased by more than 9%, setting a new 52-week high and surpassing the significant milestone of Rs 2.3 lakh crore in market value. The stock’s performance over the last six months has been nothing short of spectacular.
IRFC’s Market Cap Surge :
IRFC shares closed at Rs 176.22 on January 20, 2024, despite a tumultuous market session in which other indexes declined. However, during the first half-hour session on January 23, 2024, IRFC shares rose to a new high of Rs 192.80, representing a 9.2 percent increase. The stock’s market capitalization on the BSE has now risen to an astonishing Rs 2.35 lakh crore, representing an increase of Rs 80,000 crore in just 15 trading sessions.
A 400 percent return in six months :
Investors who had the foresight to invest Rs 1 lakh in IRFC six months ago are now seeing an extraordinary return, with the stock’s value exceeding Rs 5 lakh. IRFC shares have surged by 80 percent in just one month, indicating the stock’s strong momentum.
Budget 2023-24 Outlook for Railway Stocks :
The euphoria around railway equities is spurred by predictions of a 25% rise in Railway Capital Expenditure (CAPEX) in Budget 2023-24. This increased CAPEX is intended for a variety of programmes, including the introduction of 300-400 Vande Bharat trains. Furthermore, the security budget for railways is expected to be significantly increased, which will boost the outlook for railway stocks.
To summarise, the exceptional success of IRFC and other railway equities demonstrates the potential for intelligent investors to harvest huge returns in the stock market. As Budget 2023-24 approaches, the focus on railway infrastructure expansion is likely to intensify, making railway stocks an appealing investment option for those looking for high returns.