Top Railway Stocks with High FII Holdings in 2024
top Railway stocks with high FII stake: As a means of transportation, railroads have brought great benefits to both passengers and the economy. This stimulates economic activity and increases trade value. The same is true for FIIs. In this article, we will learn and understand some of the best railway stocks with high FII holdings.
industry analysis
India has the fourth largest rail system in the world, after the United States, Russia, and China. In the 2023-24 federal budget, the government has allocated $29 billion to the Ministry of Railways. Recognizing its importance in overall infrastructure development, the National Infrastructure Pipeline (NIP) plans to invest Rs. ₹11.43 billion (US$138 billion) will be invested in Indian Railways by 2024-25. The government has set an ambitious target of allocating $1.4 trillion from 2019 to 2023 and $750 billion for rail infrastructure by 2030.
Who are Financial Institutional Investors (FIIs)?
Foreign institutional investors (FIIs) are entities such as mutual funds, pension funds and hedge funds that are based outside India but invest in Indian financial markets. FIIs play an important role in the growth of the Indian economy by attracting foreign capital, promoting liquidity and improving market efficiency.
Their investments contribute to infrastructure development, job creation and strengthening the Indian rupee. The government welcomes FIIs to bring expertise, diversify investment portfolios and increase overall market stability.
Monitoring FII activities is critical for policymakers as it helps assess economic health, promotes capital flow regulation, and ensures sustained economic development.
Top Railway Stocks with High FII Holdings
Top Railway Stocks with High FII Holdings #1: Titagarh Rail Systems
Titagar Wagon, now called Titagarh Railsystems Ltd, was established in 1980 as a railway rolling stock foundry in Kolkata. It initially manufactured railway castings for the Indian Railways but later diversified into producing freight wagons. Today, they are a well-known mobility company with a strong presence in India and Italy. Their clients include Indian Railways, Metro Authorities, Ministry of Defense and various corporate entities.
The company’s freight rail systems accounted for 80.95% (+76.81% YoY) in FY23, while passenger rail systems accounted for the remaining 19.04% (+171.90% YoY).
As of December, foreign institutional investors (FIIs) held a 20.04% stake in the company, with Smallcap World Fund being one of the major FIIs with a 6.12% stake.
Titagarh earned revenue from operations of Rs. 2,779.59 crore in FY23 compared to Rs. It increased by 89.40% to ₹1,467.50 crore in FY22. Net profit recorded 140 million won. 125.71 crore compared to a loss of Rs. It incurred a loss of -0.68 crore in FY22. RoE and RoCE recorded 13.51% and 24.49%, respectively.
Top Railway Stocks #2 with High FII Holdings: India Container Corporation
India Container Corporation It was established in 1989 under the Ministry of Railways. Logistics and transportation company. This is a company that transports and handles shipping containers and operates logistics facilities such as ports and warehouses. Container Corporation of India is headquartered in India and generates most of its revenue domestically.
The company generates revenue from two segments: import-export and domestic. The EXIM segment accounts for the majority of sales, accounting for 63.96% of total sales. The domestic segment includes India-India transportation operations, accounting for 36.04% of revenue in FY23. As of December 2023, around 572 FIIs held 19.55% of the company’s stock.
The company earned a profit of Rs. 8169.12 crore in FY23, representing an increase of 6.74% over the revenue of Rs. 7652.73 crore in FY22. Net profit also increased by 11.38% to 30 billion won. 1,173.47 crore. RoE and RoCE in FY23 stood at 10.45% and 13.25%, respectively.
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top Railroad Stock #3 with High FII Holdings: Texmaco Rail & Engineering
Texmaco Railway and Engineering KK Birla was founded in Kolkata in 1939. It is an engineering and infrastructure company that operates across a variety of sectors and business sectors. The company is comprised of three main segments: Heavy Industrial Segment, Steel Foundry, and Railway EPC. Texmaco Rail & Engineering Ltd. offers a wide range of products including rail freight cars, fluid dynamics equipment, industrial structures, steel castings and pressure vessels.
Texmaco generated revenue from three major segments in FY23: Heavy Engineering (57.21%), Steel Foundry (10.01%), and Rail EPC (32.77%).
As of December 2023, foreign institutional investors (FIIs) hold 9.57% of the shares, followed by Bank of America Securities with 2.03%, Abu Dhabi Investment Authority with 1.99%, and the remaining investors with 5.55%.
The company generated revenue of Rs. Operating profit for this fiscal year was 2.24327 trillion won, an increase of 38.32% compared to the previous year’s sales of 1.3 trillion won. 1,621.73 crore. The company’s net profit this year is 500 billion won. Net profit was 25.8 billion won, a 25.73% increase from 25.8 billion won in the same period last year. 20.52 crore. The company’s RoE and RoCE recorded 1.92% and 8.25%, respectively.
top Railway Stock #4 with High FII Holdings: BEML
BEML (Bharat Earth Movers Ltd) It was established in Bengaluru in 1964 and operates in three business segments. The mining and construction sector offers mining machinery suitable for both open pit and underground mines. This segment also includes interests in joint ventures that provide contract mining services.
The Railways and Metro segment provides rail coaches, overhead electrical inspection vehicles, postal vans and other equipment to the Indian Railways. The defense sector supplies military equipment to the Indian Army and other defense forces.
The company operates under the Department of Defense and is not required to disclose its revenue streams. The revenue of these companies comes mainly from the sale of products such as earthmoving equipment, railway and metro products, defense products, spare parts, wind energy, and scrap sales (94.98%). The remaining 5.52% of revenue comes from services and other operating activities.
As of December 2023, foreign institutional investors (FIIs) hold 9.12% of the shares, with famous investors such as Ashoka White Oak (1.11%) and Abu Dhabi Investment Authority (1.02%) holding shares, with the remaining FIIs holding 6.99% of the shares. It holds %.
Operating profit decreased by 10.11% to 100 million won. 3,898.94 crore in FY23 from Rs. 4,337.48 crore in FY22. However, net profit increased by 22.79% to 130 million won. 157.89 crore in FY23 from Rs. 128.58 crore in FY22. Return on equity (RoE) and return on capital employed (RoCE) were 6.52% and 10.04%, respectively.
top #5 Railway Stocks with High FII Holdings: Indian Railways Catering and Tourism Corporation
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) was established in 1999 under the Ministry of Railways. The main goal is to improve, specialize and manage catering and hospitality services at stations, trains and other locations.
IRCTC also aims to promote domestic and international tourism by developing low-cost hotels, special travel packages and global reservation systems along with information provision and commercial promotion. The Company has its registered office and corporate office at New Delhi.
In FY23, IRCTC earned 41.69% revenue from catering, 8.49% from Railneer, 33.82% from internet ticketing, 11.63% from tourism and 4.34% from State Teertha. As of December 2023, 444 FIIs held 7.34% stake in the company. .
The company generated revenue of Rs. Revenue from operations for fiscal 2023 was ₹3,541.47 crore, an increase of 88.51% over the previous year’s revenue of Rs. 1,878.57 crore. In terms of net profit, it achieved good performance of 500 billion won. 1,005.88 crore in FY23, representing a 52.51% increase over the previous year’s net profit of Rs. 659.55 crore. Additionally, RoE and RoCE recorded 40.58% and 49.78%, respectively.
conclusion
As we approach the end of the article, it is worth noting that rail companies have the potential to benefit from government attention to building infrastructure, improving transport and strengthening connectivity.
The government aims to reduce logistics costs by implementing policies focused on supply chain management, connectivity and exchange hubs. Which companies do you think will benefit from this growth? I’d love to hear your thoughts in the comments section below.
Written by Santosh
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