Railway stocks are on a roll as the Indian Railways plans significant investments to enhance train safety. This surge has caught investors’ attention, making safety-focused railway stocks highly attractive.
Railway Stocks on Fire
In recent days, railway stocks have witnessed strong momentum. The Railways is gearing up to modernize its network, with a strong focus on safety. Reports suggest that the Union Budget 2026-27 may allocate a record ₹1.3 lakh crore for rail infrastructure and safety—nearly half of the Railways’ total capital expenditure. A significant portion of this fund is expected to be spent on “Kavach” systems designed to prevent train accidents.
Concord Control Systems Ltd: A Multibagger in the Making
Among railway-related stocks, Concord Control Systems Ltd (CCSL) has emerged as a star performer. On Monday, at 12 PM, the stock was trading at ₹2,470 with a 2.15% gain and reached ₹2,520 during intraday trading—a jump of over 4%.
Over the past six months, CCSL shares have surged 130%, more than doubling investors’ money. This year alone, the stock has delivered over 130% returns, and over the past three years, it has skyrocketed over 2,700%, providing extraordinary long-term gains.
What’s Driving Growth?
The stock’s rally is backed by strong fundamentals. CCSL recently secured technical prototype approval for its Kavach V4.0 system, demonstrating robust design, safety, and interoperability. The company is now ready to move from development to field trials and commercial deployment.
Details of the New Order
CCSL, through its associate Progota India (46.5% stake), secured its first order worth ₹19.5 crore for Kavach V4.0 field trials. The trial will cover a 53 km stretch in the South Central Railway zone, installing and commissioning five stations, six remote interface units, and ten local Kavach systems.
About the Kavach System
Kavach is an advanced train safety system designed to prevent collisions. It stops trains from facing head-on or rear-end collisions and mitigates human errors such as signal oversights. Additionally, it controls trains running at overspeed, ensuring maximum safety across the railway network.
Disclaimer: The analysis and suggestions mentioned are based on independent analysts and brokerage reports, not Navbharat Times. Investors are advised to consult certified experts before making any investment decisions, as market conditions can change rapidly.
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