Open Your Zerodha Demat Account & Access Free Advisory From Capito Investments
๐ถRailways sector:
Some key Developments & Opportunities in the Indian Railways sector:
๐นGovernment Investment: The Union Budget has allocated ₹2.40 lakh crore for capital investment in the Indian Railways, marking a significant increase from the previous year & reflecting strong governmental support.
๐นInfrastructure Expansion: Projects include doubling railway lines over 2,800 km, gauge conversion over 150 km, and new lines covering 600 km, offering numerous opportunities for railway stocks through key project tenders and bids.
๐นIncreasing Passenger Traffic: With passenger traffic projected to reach 12 billion per year by 2031, Indian Railways is upgrading over 1,000 coaches and introducing new high-comfort trains like Vande Bharat and Amrit Bharat Express.
๐นTrack Renewal and High-Speed Trains: Increased allocation for track renewal to support the launch of high-speed Vande Bharat trains, enhancing both speed and safety.
๐นFreight Traffic Growth: Anticipated rise in freight demand to 8 million tonnes by 2031, supported by the development of six high-capacity, high-speed corridors for efficient freight movement.
๐ถRailways Sector Stocks:
๐นTitagarh Rail Systems Ltd
๐นTexmaco Rail & Engineering Ltd
๐นJupiter Wagons Ltd
๐นIndian Railway Finance Corporation Ltd
๐ถDefense Industry:
Some key Developments & opportunities in the Indian Defense Industry:
๐นExpansive Opportunity Pipeline: The defense industry is set to grow significantly, with an opportunity pipeline worth ~US$ 110 billion over the next 6-8 years. This includes major investments in aerospace (US$ 44 billion), shipbuilding (US$ 40 billion), and missiles/artillery (US$ 26 billion).
๐นEnhancing National Security: Increased tensions with neighboring countries such as China and Pakistan have prompted a strategic defense restructuring. This involves enhancing domestic production and export capacities to better address national security concerns.
๐น Agnipath Scheme: This defense initiative targets reducing costs associated with personnel & pensions, which make up 51% of the defense budget, reallocating funds to critical defense capital procurement to boost operational & procurement efficiency.
๐นExport Goals: India aims to significantly increase its defense exports, targeting Rs 350 billion by FY25.
๐น Indigenization Efforts: The Government of India is promoting the 'Atmanirbhar' (self-reliant) defense initiative, which includes:
๐ธIncreasing the required indigenized content across various defense categories.
๐นStrategic Partnership Model: Promotes private sector participation in defense manufacturing.
๐นImport Embargo: Lists 411 items that are banned from import to boost the domestic industry.
๐นIndigenization Lists: Includes 2,166 items that Defense Public Sector Undertakings (DPSUs) must source domestically.
๐นFDI Enhancement: Increases the Foreign Direct Investment limit to 74% under the automatic route to encourage more foreign investment.
๐นDefense Corridors: Establishes dedicated defense manufacturing corridors in Uttar Pradesh and Tamil Nadu to localize the development of defense technology and infrastructure.
๐ถDefense Sector Stocks:
๐นHindustan Aeronautics Ltd
๐นGarden Reach Shipbuilders & Engineers Ltd
๐นBharat Electronics Ltd
๐นCochin Shipyard Ltd
๐ถGreen Energy Sector:
Some key Developments & Opportunities in the Indian Green Energy Sector:
๐นSolar and Wind Capacity Expansion: By FY28, India plans to add 130-140 GW of solar capacity and 24-25 GW of wind capacity. This growth is supported by an aggressive government tendering roadmap.
๐นSurge in Solar Module Exports: Restrictions on Chinese goods have boosted Indian solar module exports, enhancing India's stature as a key global player in solar technology.
๐นPLI Scheme for Domestic Manufacturing: The Production Linked Incentive (PLI) scheme for solar module manufacturing initially had a financial outlay of 45 billion, which was later increased to 240 billion to support the sector's growth.
๐นModernization of Power Grids: As India and other nations modernize their electrical grids, there is increasing demand for infrastructure such as towers, smart meters, and transformers to improve reliability and meet rising energy demands.
๐ถGreen Energy Sector Stocks:
๐นKPI Green Energy Ltd
๐นWaaree Renewables Technologies Ltd
๐นSterling & Wilson Renewable Energy Ltd
๐นInox Wind Ltd
๐ถPublic Infra Sector:
Some key Developments & Opportunities in the Indian Public Infra Sector:
๐นWater Management: "Har Ghar Nal se Jal" aims to ensure clean drinking water to all households using technology to reduce water wastage and upgrading sewage treatment facilities.
๐นAviation Sector Growth: Enhancing air connectivity through the development of new airports, modernization of existing ones, and expansion of international airports to increase air traffic.
๐นAffordable Housing: Strengthening the RERA Act to enhance transparency and consumer protection in the real estate sector.
๐นTourism Development: Promoting sustainable ecotourism in lesser-known areas, including major river ecosystems and adventure tourism in the northeast, focusing on regions like Lakshadweep and the Andaman and Nicobar Islands.
๐ถPublic Infra Sector Stocks:
๐นVa Tech Wabag Ltd
๐นPraveg Ltd
๐นInterglobe Aviation Ltd
๐นHFCL Ltd
๐นJash Engineering Ltd
๐นGMR Airports Infrastructure Ltd
๐ถTransmissions & Distribution Sector:
Some key Developments & Opportunities in the Indian Green Energy Sector:
๐นEnhancing Transformation Capacity: The government is focused on adding specific transformation capacity for each new megawatt generated to prevent line congestion and ensure consistent electricity supply, particularly in interstate transmissions.
๐นRenewable Energy Driving Transmission Capex: The shift towards renewable energy, which introduces fluctuating voltages, necessitates significant upgrades to the transmission infrastructure. This includes expanding the grid and enhancing stability by replacing and upgrading older transformers and other equipment.
๐นResurgence in T&D Capital Expenditure:
Over the next 3-4 years, the Indian electric grid is poised for significant investments totaling ~₹2.4 trillion. This Capex will enhance inter-state transmission connectivity, facilitating the integration of green energy to achieve a 500 GW capacity by 2030.
๐ถTransmissions & Distribution Stocks:
๐นHitachi Energy India Ltd
๐นSiemens Ltd
๐นVoltamp Transformers Ltd
๐นSchaeffler India Ltd
๐นPower Grid Corporation of India Ltd
๐นREC Ltd
๐นApar Industries Ltd