As our nation is undergoing through the transformation phase, The indian railways are also transforming from the scratches where the Britishersuu left. Currently the true transformation phase is going with sufficient and efficient budget allocation for the railways. In this article we are going to discuss about the three railway multibagger stocks, which are having the potential to deliver multifold returns, as indian railways already produced several multibaggers in the past couple of years.
We are witnessing the transformation of the Indian railways, as everywhere Vande Bharat trains are taking places in every railway zone across the country. This transformation is going to help the below to deiscussed stocks to deliver multibagger returns.
Here I would like to take a small example to define the potential of these stocks, these companies already been won the 25000 Cr worth of orders, it’s three to four times of their market caps. So now you understand the opportunity they will have in future to deliver the multifold returns.
The theme we are going to discuss is all about wagons manufacturing, wagons are nothing but train coaches. To understand in simple words, to build Vande Bharat trains, we need to manufacture and assemble lot of coaches right, here’s coming the opportunity, that is going make these three companies as next railway multibagger stocks.
The below three companies are the biggest manufacturers of wagons (train coaches) in india, and 70% of wagon orders are with these companies. If you look at their market caps, it’s three to four times of their orders they have won. Clearly we are seeing growth in front of us, the following are the three railway multibagger stocks.
Railway Multibagger Stocks are:
1. Titagarh Wagons Ltd
Titagarh wagons ltd is india’s biggest wagon manufacturer also they have the order book worth around 10000 Cr, to deliver approximately 24000 wagons, if you look at the market cap of the company is just 4520 crores. this company generating healthy return ratios and it’s almost a zero debt company. This stocks is currently trading at 378 which is trading at all time highs and still this company has a great potential to deliver multifold returns. This theme yet to play more as this was at early stages.
2. Texmaco Rail & Engineering Ltd
Texmaco Rail & Engineering Ltd is the second largest player in India in terms of manufacturing wagons (Trainc coaches), also secured second largest order worth 7600 Cr, to deliver around 20000 wagons by the end of 2025. This companies orders are also three times of the companies market cap, which 1894 crores. This stock is currently trading at 59, which is nearing to it’s all time high.
3. Jupiter Wagons Ltd
Jupiter Wagons Ltd is also a one of the key player that’s going to get benefitted from the above theme we have been discussed. This company has diversivied strong product portfolio along with the wagons manufacturing. This stock is also trading at 130 which is nearer to all time high.
Conclusion:
Keenly observe the above theme which is wagons manufacturing, what we have been discussed in simple tems and the companies going to be benefitted from the above theme. The run up which is we are seeing in stocks is still a starting move as they had a lot of potential to grow and to deliver multifold returns in upcoming years as the transformation of indian railways will not be done in a single day. Closely observe the above theme and make a note. As discussed above 3 are the railway multibagger stocks. Before investing into any single stock please consult your financial advisor.