Rail safety equipments makers' shares rise
Shares of rail safety equipment makers rose after Rs 29.22 bn was alloted for rail safety in the railway budget.india Updated: Feb 24, 2006 17:37 IST
Shares of rail safety equipment makers rose on Friday on traders' expectation that the Rs 29.22 billion allocation on safety by India in its federal railway budget for 2006/07 would boost profits.
Shares of Kernex Microsystems Ltd jumped 15.9 per cent to Rs 267.25, Integra Hindustan Control Ltd rose 5 per cent to Rs 302.70. Shares of Kalindee Rail Nirman Engineering Ltd climbed 5 per cent to Rs 148.55 and Siemens Ltd, the India unit of Siemens AG, was up 0.34 per cent at Rs 4,310.15.
"Companies like Kernex, Intergra Hindustan should see sizable jump in orders due to investment by the government in railway safety," VK Sharma, head of research, Anagram Stock Broking Ltd, said.
Siemens may not get such benefit as its revenues are not heavily dependent on the railways, he said.
Railways outsources safety equipments including for signalling, anti-collision systems and auto breaking system.