Titagarh Wagons, Kalindee Rail, Texmaco Rail extends fall; tank over 10%

Titagarh Wagons plunged 14% to Rs 96, Texmaco Rail down 12% to Rs 106 and Kalindee Rail by 11% at Rs 110 on the BSE.

Shares of wagon-makers like Titagarh Wagons, Texmaco Rail & Engineering and Kalindee Rail Nirman (Engineers) have slumped more than 10%, extending their previous day’s losses after the Rail Budget fell short of industry expectations.

Titagarh Wagons plunged 14% to Rs 96, while Texmaco Rail & Engineering slipped 12% to Rs 106 and Kalindee Rail Nirman (Engineers) by 11% at Rs 110 on the BSE. At 10:11 AM, the S&P BSE Sensex was up 0.31% at 23,048 points.

All these three stocks had fallen between 8%-9% on the bourses.

A K Prabhakar, head of research, IDBI Capital, says: “There are a lot of out-of-the-box ideas. For instance, the railways plans to bid / purchase power directly from the companies instead of the state electricity boards (SEBs). The move will benefit power utilities. So, the government is trying to cut cost, keep fares unchanged and monetise assets. These are innovative things. Having said that, we also need to keep an eye on how the government will fund its aggressive plans for the railways.”

“Wagon-makers will not benefit immediately from the railway budget. There was nothing much for them this time around, and the order inflow will take time,” he adds. CLICK HERE TO READ FULL STORY.