The Indian government has set an ambitious target to produce 400 Vande Bharat Trains in India by the end of 2024-25. To achieve this goal, the Ministry of Railways and the Indian government have signed contracts with private and government-owned companies in India and across the globe. These contracts will eventually increase the sales and cash flow of those businesses, which could lead to better returns for stakeholders in the future.

Here are 4 stocks that received contracts and were anticipated to grow more in the future.

Rail Vikas Nigam Ltd:

Rail Vikas Nigam Ltd was Incorporated in 2003 by the Govt. of India, it is engaged in the business of implementing various types of Rail infrastructure projects such as gauge conversion, new lines, railway electrification, and bridges.

The company’s shares were up 1.27 percent from the previous close price of Rs 122.50 to Rs 123.50 on June 14. It is a small-cap company with a market value of Rs 25,760 crore.

Russia’s CJSC Transmashholding and Rail Vikas Nigam Ltd have joined hands to manufacture 200 Vande Bharat trains. The government of India handed this contract in the fourth quarter of the fiscal year 2022 for Rs 58,000 crores. The company also received a contract to manufacture, supply, and maintain 120 trains for the next 35 years. According to the tender document.

BEML Ltd:

BEML Ltd is engaged in the manufacturing of a wide range of heavy earthmoving equipment for the mining and construction industry, and defence industry and provides coaches for the metro and Indian Railways.

The company’s shares were trading at Rs 1,510.85 on June 14, up 0.84 percent from the previous close price of Rs 1,497.70. It is a small-cap company with a market capitalization of Rs 6,304 crore.

In the first quarter of FY23, the Company received a letter of acceptance from Indian railways for the design, manufacture, and commissioning of 10 Vande Bharath coaches worth Rs 675 crores.

Bharat Heavy Electricals Ltd(BHEL):

Bharat Heavy Electricals Ltd is undertaken by the Government of India, the company is engaged in the manufacturing of integrated power plant equipment, and the company caters to domestic and international clients.

The company’s shares were trading at Rs 83.65 on June 14, down 1.70  percent from the previous close price of Rs 84.85, It is a Mid-cap company with a market capitalization of Rs 29,162 crore.

Indian railways awarded a contract to BHEL worth Rs 23,000 crore for the supply of 80 sleeper class vande Bharat trains, as well as maintenance for the next 35 years.

BHEL and Titagarh Wagons Limited are going to collaborate together on the trains’ final integration, testing, commissioning, and maintenance purpose.

Siemens Limited:

Siemens Limited provides Automation and Controls for industrial applications for manufacturing industries, and the company has expertise in providing drive control systems for power generation and transmission industries.

On June 14, the company’s shares were trading at Rs 3,766 a share, up 0.85% from the previous close price of Rs 3,731. It is classified as a large-cap firm, with a market capitalisation of Rs 1,34,177 crore.

In the fourth quarter of FY22, Siemens was awarded a $ 3.25 billion locomotive contract to provide and maintain goods trains, deliver 1,200 electric locomotives, and offer service for 35 years.

In addition, the business developed 9,000-horsepower trains with a peak speed of 120 km/hr that would be constructed in India over the next 11 years.

Written by Omkar C

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