Comapnies which supply to the railways would benefit from new tender: Deven Choksey

Comapnies which supply to the railways would benefit from new tender: Deven Choksey 

Better times are coming in for companies which supply to the railways, says Deven Choksey, MD, KRChoksey Investment Managers Private Limited. In an interview to ET Now, he agrees that there are opportunities within this space for individual companies. 

ET Now: Railway stocks have been pretty hot of late considering that a new tender has been floated for a sizeable 14,000 plus wagons. is it time to turn bullish on this space, at least in the near term? 

Deven Choksey: Yes, I think from a business point of view, if one has got a horizon of two years, this is a place where real growth will happen. I am not totally sure about how much of it would translate into margins because that depends on the margins of the compamies which supply to the railways. I am not seeing very healthy margins in that area. 

However, I would like to believe that better times are coming in for companies which supply to the railways. Given the kind of programme that the railways is conducting for expansion, the predictability of their revenue and business will remain higher. So certainly I would like to remain positive and look around for opportunities within this space in individual companies. 

Source :The Economic Times