Stocks in the railway industry, including Rail Vikas Nigam and REC, have recently enjoyed a significant uptick.
Among the leading large- and mid-cap equities during the continuing boom on Dalal Street since the beginning of the calendar year, railway-related stocks and new-age technology firms have been prominent. Rail Vikas Nigam’s year-to-date growth rate is the highest, at 144%. The share price of the corporation has increased from Rs 68.25 on December 30, 2022, to Rs 166.25 on September 28, 2023.
Other major winners included REC (up 141%), Indian Railway Finance Corporation (up 130%), and Power Finance Corporation (up 117%). Stocks in companies like Polycab India, Tata Motors DVR, and Aurobindo Pharma have all risen by more than 100% year to date. A few of the top 20 gainers are also held in high esteem by market watchers.
When asked about the state of the railway business, Santosh Meena, Head of Research at Swastika Investmart, told Business Today, “The railway industry is currently witnessing a noteworthy upswing, primarily driven by substantial capital expenditure (capex) commitments.” Companies in this industry consistently win large contracts, which bodes well for their financial futures.
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Policybazaar’s parent company, PB Fintech, has had gains of 70%, while meal delivery service Zomato has seen gains of 68%, and digital payments platform One97 Communications (Paytm) has seen gains of 61%, according to the available data.
The state of play for global food delivery players is rapidly developing,” Nuvama Institutional Equities said in a statement about the industry. We take a comprehensive look at the trends and dynamics currently at play in this area. There are four main ideas: Despite initially being a relatively small source of funding, advertising has quickly expanded to become an essential secondary revenue driver. Accelerated profitability can be attributed to economies of scale in delivery volumes, decreased marketing and advertising expenses, and improved operational efficiencies. User growth is increasingly being driven by the ‘non-restaurant’ sector. Increased expenditure and membership longevity are direct results of membership programs.
According to Nuvama, “we believe the above trends are either already playing out or shall play out for Zomato in the medium term.”
Year-to-date gains for Jindal Stainless are at 98%, for Linde India at 74%, and for ZF Commercial Vehicle Control Systems India at 71%.
Since December 2022, Cholamandalam Investment and Finance Company, Supreme Industries, KPIT Technologies, CG Power and Industrial Solutions, IDFC First Bank, Bharat Heavy Electricals, and Tata Motors have all had gains of 58% to 70%.
With a price target of Rs. 786, Nomura is bullish on Tata Motors. The global brokerage business noted in a report released on September 14 that “the stock is currently trading at around 4x FY25 EBITDA, which we believe is attractive.”
The broader BSE Midcap index increased by 26 percent during the same time period, while the benchmark equity index, the BSE Sensex, increased by about 8 percent.