November 20, 2024
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Stock Market

Railway stocks with high mutual fund holdings of upto 16% to keep on your radar

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Stock Market

Railway stocks with high mutual fund holdings of upto 16% to keep on your radar

Railway stocks with significant mutual fund holdings indicate strong institutional investor confidence in companies serving India’s expanding rail infrastructure sector. These stocks, particularly those involved in manufacturing equipment, providing services, and executing railway projects, attract mutual funds due to their growth potential aligned with the government’s focus on railway modernization and expansion initiatives.

1. BEML Limited

Bharat Earth Movers Limited (BEML) is a prominent Indian public sector undertaking established in May 1964. The company is headquartered in Bengaluru, Karnataka, and operates under the administrative jurisdiction of the Ministry of Defence, Government of India. BEML plays a critical role in manufacturing heavy equipment for various sectors, including defence, railways, mining, and construction.

With a market capitalization of Rs. 15,403 crores, BEML Limited’s share price closed at Rs. 3,699 per equity share. BEML Limited has a majority stake held by the promoters at 54.03 percent, foreign institutional investors at 5.66 percent, domestic institutional investors at 18.51 percent, and the public at 21.59 percent as of September 2024.

In the domestic institutional investors, the mutual fund has a holding of 16.33%, which includes Invesco India PSU equity fund at 1.80%, Kotak equity opportunities fund at 4.76%, HDFC Mutual Fund at 5.79%, ICICI prudential infrastructure fund at 2.27%, and other mutual funds at 1.71% as of September 2024.

BEML Limited’s revenue from operations has increased by 3.98 percent from Rs. 15,787 crore in FY23 to Rs. 4,054 crore in FY24. The company’s net profit has increased from Rs. 158 crore in FY23 to Rs. 282 crore in FY24, which has grown by 78.48 percent.

2. Titagarh Rail Systems Limited

Titagarh Rail System Limited was established in 1984 and is a significant player in the Indian rolling stock manufacturing sector, specializing in the production of railway vehicles and components. The company initially operated as a rolling stock foundry and has since evolved into a major manufacturer of freight wagons, passenger coaches, and metro trains.

With a market capitalization of Rs. 14,985 crores, Titagarh Rail System Limited’s share price closed at Rs. 1,113 per equity share. Titagarh Rail System Limited has a majority stake held by the promoters at 40.46 percent, foreign institutional investors at 16.32 percent, domestic institutional investors at 13.94 percent, the government at 0.01 percent, and the public at 29.25 percent as of September 2024.

institutional investors at 13.94 percent, the government at 0.01 percent, and the public at 29.25 percent as of September 2024. In the domestic institutional investors, the mutual fund has a holding of 10.30%, which includes Franklin India Multi Cap fund at 1.01%, Motilal Oswal Large and Midcap fund at

1.04%, HSBC aggressive hybrid Fund at 1.05%, HDFC large and mid-cap fund at 3.57%, and other mutual funds at 3.63% as of September 2024.

Titagarh Rail System Limited’s revenue from operations has increased by 38.6 percent from Rs. 2,780 crore in FY23 to Rs. 3,853 crore in FY24. The company’s net profit has increased from Rs. 126 crore in FY23 to Rs. 286 crore in FY24, which has grown by 126.98 percent.