Railway stocks on fast track ahead of Budget; Ircon, IRFC, others jump up to 15% today
railway stocks as they continue to move on the fast track ahead of the 2024 Budget. Ircon International was the leader in the pack on Saturday, gaining 15% while hitting a fresh 52-week high.
Meanwhile, the most-valued Indian Railway Finance Corporation (IRFC) was up 10% at its fresh 52-week peak of Rs 176.
Others including Rail Vikas Nigam Limited (RVNL), Indian Railway Catering and Tourism Corporation (IRCTC), Titagarh Rail Systems, Jupiter Wagons, Texmaco Rail & Engineering and RITES soared up to 10% and also hit their fresh 52-week highs.
Barring RITES, all these stocks have delivered multibagger returns, with IRFC returning a whopping 422% gains over the past 12 months. Returns by RITES have been to the tune of 70% which is still a significant outperformance over Nifty which has delivered nearly 20% returns during this period.
IRFC has remained unbeaten seven times in the last eight trading sessions, gaining 46% in the rally.
On Tuesday, the stock generated significant investor interest with approximately 9 crore shares changing hands around 11 am.
On Saturday, the market capitalisation of the company touched Rs 2.30 lakh crore mark as the stock jumped 10% to hit its fresh 52-week high of Rs 176.25 on the NSE. The stock has seen an exponential rise in its price from its 52-week low of Rs 25.40 on March 28, 2023.
With today's fresh high, the gains translate into a staggering 593% in less than a year.
With the recent rally, the stock is now trading in a strongly overbought zone. Momentum indicators RSI and MFI are hovering around 90 and 96, respectively as reported by Trendlyne.
RVNL, which is the construction arm of the Ministry of Railways, has seen its share price swell by nearly 317% in the last 12 months.
