Will these 2 Railway Stocks Continue to RALLY or TIME to book PROFITs now? #railwaystocks #rahuljain

Summary

This video delves into the booming railway sector, highlighting significant capital investments and government initiatives driving stock performance. It focuses on two standout stocks, Tagara Railway Systems and Jupiter Wagon Limited, showcasing their impressive returns and growth trajectories. The presenter examines their financials, order books, and strategic moves, such as acquisitions, to provide a data-driven analysis. The video also discusses valuations, investor sentiment, and the potential for these stocks to continue their bull run, offering viewers a comprehensive insight into the railway stocks' future prospects.

Takeaways

• 🚂 The video discusses the significant capital inflow into the railway sector, with 2.40 lakh crores allocated for FY 2024 and major railway corridor programs announced in the 2025 interim budget.
• 📈 Railway stocks have seen massive rallies in the last 2-3 years, with some stocks like Jupyter Wagon and RVNL giving over 1,000% returns.
• 🔍 The first stock analyzed is Tagar Railway Systems, which has shown a 247% return in the last year and a significant rally in FY 23 and 24, backed by strong fundamentals.
• 📊 Tagar Railway Systems reported its first net profit in FY 2023, which doubled in FY 2024, with revenues growing from 1,400 CR to 2700 CR and further by 40% in the next fiscal year.
• 💼 The company has a substantial order book of 14,000 crores, with a second order book of 13,300 crores, indicating strong revenue visibility for the next few years.
• 🔄 Tagar Railway Systems is planning a capex of 1,000 crores for capacity building and has a healthy balance sheet with a low debt-to-equity ratio.
• 📉 Despite the strong performance, the video suggests that the current PE and PB ratios for Tagar Railway Systems are high, indicating potential overvaluation.
• 🌟 The second stock featured is Jupiter Wagon Limited, which has seen a 400% return in the last year and a 4,000% increase over five years.
• 📋 Jupiter Wagon has a smaller order book of 7,000 crores compared to Tagar, with a significant portion coming from private players, suggesting less risk.
• 💡 The company's recent acquisition of Bona Trans India Pvt Ltd and plans to increase wheel set production could add substantial revenue to their order book.
• 📊 Jupiter Wagon is debt-free and has shown consistent profit growth, but it is trading at a higher PE and PB ratio compared to industry standards.

Q & A

What is the main focus of the video?

The video focuses on discussing two Railway stocks that have seen significant growth due to increased capital investment in the railway sector in recent years.

How much capital outlay was provisioned for Railways in FY 2024 and what was announced in the 2025 interim budget?

In FY 2024, 2.40 lakh crores were provisioned for Railways. In the 2025 interim budget, three Railway corridors were announced as part of major economic corridor programs.

What is the performance of Railway stocks under Ashani vnav's leadership in the last three years?

Under Ashani vnav's leadership, Railway stocks have given multibagger returns, with many of them providing more than 1,000% returns in the last three years.

What is the stock performance of Tagar Railway Systems in the last one year and five years?

In the last one year, Tagar Railway Systems has given close to 247% returns, and in the last five years, it has grown from a 61 rupee stock to a 1,500 rupee level.

What was the financial performance of Tagar Systems up until March 2022?

Up until March 2022, Tagar Systems was making losses in all fiscal years except for one, where it reported a net profit for the fiscal year 2023.

What is the size of the order book for Tagar Railway Systems and what does it indicate about the company's future revenue?

Tagar Railway Systems has an order book of around 14,000 crores, which is almost four times the company's revenue in FY 2023-24, indicating strong revenue visibility for the company.

What is the significance of the joint venture between V bhat with B in Tagar Railway Systems' order book?

The joint venture between V bhat with B contributes around 53% to Tagar Railway Systems' order book, indicating a significant business collaboration.

What is the total order book size when combining both order books of Tagar Railway Systems?

The combined order book size of Tagar Railway Systems is around 28,000 crores, which is 7 to 8 times their FY 24 revenues.

How has the PE and PB ratio of Tagar Railway Systems changed in the last three years and what does it suggest about the stock's valuation?

In the last three years, the PE ratio has increased from a median of around 37 to around 70, and the PB ratio has increased from a median of 2.7 to around 9, suggesting that the stock is currently trading at a high valuation.

What is the performance of Jupiter Wagon Limited in the last one year and five years?

In the last one year, Jupiter Wagon Limited has given close to 400% returns, and in the last five years, it has grown from 17 rupees per share to almost 700 rupees per share.

What is the composition of Jupiter Wagon Limited's order book and how does it compare to Tagar Systems'?

Jupiter Wagon Limited has an order book of roughly 7,000 crores, with 60% to 70% coming from private players, making it slightly less risky compared to Tagar Systems, which has a larger order book but mainly contributed by the government sector.

What is the recent acquisition by Jupiter Wagon Limited and how does it impact the company's revenue?

Jupiter Wagon Limited recently acquired Bona Trans India Private Limited, which manufactures wheel sets for Railway stocks. This acquisition is expected to add around 400 crores of revenues by producing 14,000 to 18,000 wheel sets annually.

What are the current PE and PB ratios of Jupiter Wagon Limited and how do they compare to industry standards?

Jupiter Wagon Limited is currently trading at a higher PE and PB ratio compared to industry standards, with an all-time high PE ratio of around 89 and a PB ratio of 18.