2 moderately valued railway stocks worth researching ahead of Union Budget 2025?
Published: 2025-01-13
Status:
Available
|
Analyzed
Published: 2025-01-13
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Indian Railways revenue is projected to increase from ₹2.5 lakh crore in 2025.
"Railways are expected to receive a modest increase in revenue from ₹2.5 lakh crore in 2025."
Pending
A project to expand India's assisted rail network by 300 km was approved in August 2024.
"In August 2024, the Ministry of Railways approved a project that will expand the assisted rail network by 300 km."
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Partnerships with food aggregators like Swiggy and Zomato have driven growth in IRCTC's e-catering segment.
"which has led to good growth in e-catering."
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Despite generating 32% of revenue, IRCTC's internet ticketing segment accounts for approximately 77% of its profit.
"while 32% of revenue was generated from internet ticketing, approximately 77% of profit came from there."
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IRCTC's tourism sector, accounting for 11.3% of revenue, is highly profitable.
"the tourism sector, which generates 11.3% revenue, is extremely profitable."
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IRCTC experienced a 9% revenue growth and a 17% profit growth.
"Revenue saw a growth of 9%, and the bottom line grew by approximately 17%."
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Between FY18 and FY24, IRCTC's operating profit grew at a rate of 5.3%, outpacing its 2.9% revenue growth.
"from FY18 to FY24, while revenue grew by approximately 2.9%, operating profit grew by 5.3%."
Pending
The Indian government's budget allocation towards railways increased sixfold from FY16 to FY24, rising from ₹40,000 crore to ₹240,000 crore.
"If we look at the FY16 to FY24, it has increased by almost 6 times from Rs 40,000 crore to Rs 240,000 crore."
Pending
The Indian government has invested approximately ₹1.9 lakh crore ($22 billion) in railway modernization.
"the Government of India has so far spent $22 billion, i.e. approximately Rs 1.9 lakh crore, on modernization."
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IRCTC's current capital work in progress is approximately ₹466 crore, exceeding its fixed assets value.
"the company is recently doing capital work in progress of around 466 crores. Just for reference, this figure is more than its fixed assets."
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IRCTC is debt-free and possesses ₹2,421 crore in cash and cash equivalents.
"debt free and cash rich with 2421 crores in cash and cash equivalents."
Pending
IRCTC's stock is showing signs of reversal from the 790 level, a multi-year support, with the 790-840 range indicating intact support and reduced probability of further decline.
"Currently, the stock seems to be reversing from its 790, which is a multi-year support. As it touched 790 and bounced to 840 levels, the price action according to the basics has been 90 levels are intact, reducing the probability of further weakness in the stock."
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The Rail Neer division, despite contributing 11% of IRCTC's revenue, generates only 1% of its profits.
"Even though it accounts for around 11% of revenue, only 1% of profits come from there."
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IRCTC's tourism and travel division, despite aggressive expansion, contributes only 85% of total profit, indicating potential inefficiency.
"Furthermore, the company's tourism and travel division, which is aggressively expanding, is contributing only 85% of total profit, highlighting a lack of efficiency."
Pending
India's National Rail Plan 2030 targets increasing the railway freight share from the current 27% to 45%.
"The total share of railway freight in India is currently 27%, but the National Rail Plan 2030 aims to take it to 45%."
Pending
Concor anticipates its market share in First-Mile/Last-Mile (FM LM) transportation to grow from 25% to 50% by the end of FY25.
"the market share of the company in FM LM transportation, which is currently 25%, can increase to 50% by the end of FY25."
Pending
Approximately 83% of Concor's profit before interest is derived from its import and export operations.
"The company earns around 83% of profit before interest from import and export."
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Concor's management has provided guidance for 18% growth, with expectations of 15% GDP growth and 25% domestic growth.
"guidance of 18% growth has been given with GDP around 15% growth and domestic 25% growth."
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Concor holds over ₹11,000 crore in reserves, including ₹3,778 crore in cash and cash equivalents.
"the company has reserves of 11000 plus crores, out of which 3778 crores is cash and cash equivalents."
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Concor's stock experienced a multi-year breakout at the end of 2023, followed by a rally.
"on the weekly time frame, the stock gave a multi-year breakout at the end of 2023, after which the stock saw a rally."
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Concor's annual guidance of 15% for import-export growth, implying 20-25% in the next six months, is considered potentially over-optimistic given the 3.5% growth in the first half of FY25.
"has given an annual guidance of 15% for import-export, which means 20% to 25% growth in the next 6 months, which may be a bit over-optimistic."
Pending
Domestic Institutional Investors (DIIs) are increasing their stake in Concor and currently own one-fourth of the company.
"DIIs are increasing it and own one-fourth of the company."
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LIC increased its stake in Concor from 6% to 8% in the most recent quarter.
"In the recent quarter, LIC has also increased its stake from 6% to 8%."
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The markets for IRCTC and Concor are expected to benefit from government initiatives like railway modernization and the National Rail Plan.
"Both markets are well-positioned to benefit from the government's railway modernization and National Rail Plan initiatives."
Pending