Union Budget 2025 on Railway Sector: Rs 2,52,000 Crore Capex Fixed; Railway Stocks To Watch In Upcoming Trading Sessions
For the second consecutive year, the Indian Railways' capital expenditure for the financial year 2025-26 is set at Rs 2.52 lakh crore, focusing on safety and electrification.
Finance Minister Nirmala Sitharaman presented her eighth budget on February 1, but made no major announcements for the railways. For the second consecutive year, the Indian Railways' capital expenditure for the financial year 2025-26 is set at Rs 2.52 lakh crore, focusing on safety and electrification. This allocation remained unchanged from the previous year, disappointing analysts who had anticipated a significant increase. The budget documents also show the allocation for the railways sector has remained unchanged at ₹2.55 lakh crore for the financial year 2026, the same as the allocation for the financial year 2025.
The unchanged capital expenditure of Rs 2.52 lakh crore for 2025-26 triggered a fall in railway stock prices. Earlier reports suggested a potential 15-18 per cent hike in budgetary allocation for the Ministry of Railways, which had initially boosted investor sentiment. This contrasted with the interim budget for 2024-25, where the railway capex saw only a 5 per cent increase from the previous year, falling short of expectations of a 10 per cent rise.
Despite the lack of major announcements, some railway-related measures were included. These included the promotion of MRO (Maintenance, Repair, and Overhaul) with a 10-year exemption on goods for shipbuilding and ship breaking, and an extension of the time limit for exporting railway goods imported for repairs. Overall, the budget did not meet the expectations for increased railway capital expenditure, which would have benefited the entire sector.
Following is the list of railway stocks to keep under the radar in the upcoming trading sessions: -
|
Company Name
|
Market Cap (Rs. Crore)
|
LTP (Rs)
|
1 Year Returns (%)
|
|
Kernex Microsystems (India) Ltd
|
2,094
|
1,249.40
|
97
|
|
Rail Vikas Nigam Ltd
|
91,126
|
437.05
|
60
|
|
ARSS Infrastructure Projects Ltd
|
68
|
30.03
|
31
|
|
Ramkrishna Forgings Ltd
|
13,714
|
756.75
|
2
|
|
Jupiter Wagons Ltd
|
15,142
|
356.70
|
1
|
|
BEML Ltd
|
14,738
|
3,539.00
|
1
|
|
Oriental Rail Infrastructure Ltd
|
1,638
|
253.70
|
-1
|
|
Transrail Lighting Ltd
|
7,243
|
539.50
|
-1
|
|
Ircon International Ltd
|
19,055
|
202.60
|
-3
|
|
RailTel Corporation of India Ltd
|
12,322
|
383.95
|
-3
|
|
Titagarh Railsystems Ltd
|
12,934
|
960.40
|
-6
|
|
Texmaco Rail & Engineering Ltd
|
7,432
|
186.05
|
-10
|
|
Indian Railway Finance Corporation Ltd
|
1,93,871
|
148.35
|
-11
|
|
Indian Railway Catering and Tourism Corporation Ltd
|
62,392
|
779.90
|
-15
|
|
Container Corporation of India Ltd
|
46,041
|
755.65
|
-15
|
|
Rites Ltd
|
12,428
|
258.60
|
-26
|
|
BCPL Railway Infrastructure Ltd
|
151
|
90.05
|
-32
|
|
Gateway Distriparks Ltd
|
3,780
|
75.65
|
-32
|
|
K&R Rail Engineering Ltd
|
1,204
|
315.80
|
-59
|
|
Cressanda Railway Solutions Ltd
|
302
|
7.14
|
-67
|
(* Last traded price or LTP is as of January 31, 2025 closing price)
Do you own any of these railway stocks in your portfolio? Do let us know in the comments below
Disclaimer: The article is for informational purposes only and not investment advice.
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