Navratna PSU Stock: Analysts suggest buying this railway stock for over 35% returns; check details

Stock markets continued to break records for the fourth day in a row today, July 18, with the benchmark Sensex breaking above 81,000 for the first time and the Nifty climbing a new high of 24,800, fuelled by buying in IT, oil & gas, and FMCG stocks.

Budget 2024 is also scheduled to be presented next week. The impact of the government's announcements in the budget will be visible on the stock market. There is a special focus on the shares of sectors like infrastructure, railways, and defence, because the government can make big announcements regarding these sectors.

Stock to buy before Budget 2024

Before the Budget, in our 'Budget My Pick' series, market experts have found and brought such stocks for investors. Mehul Kothari of Anand Rathi Securities has advised to invest in RITES Ltd for a year. According to him, you should buy RITES' shares before the Budget.

RITES share price target

On Thursday, July 18, shares of RITES last traded at Rs 732.3 each, down 1.48 per cent on BSE. The analyst has suggested buying the stock for a target price of Rs 1,000 each. This means the stock can give up to 37 per cent returns in one year. Kothari has also suggested putting a stop loss at Rs 650. 

"Technically, a good trendline breakout is being formed in the stock on daily and weekly charts. Apart from this, the government may have a big focus on infrastructure as well as the railway sector in the Budget. This can cause a big stir in railway shares," said Kothari.

RITES share price history

In six months, RITES has provided over 40 per cent returns to its investors. The stock has also jumped 46 per cent on a YTD basis, 80 per cent in a year, 200 per cent in two years, and 158 per cent in three years. 

The mid-cap PSU stock has a current market capitalisation of Rs 17,596.11 crore. Its 52-week high is Rs 826.2 and the 52-week low is Rs 407.2.

The views/suggestions/advice expressed here in this article are solely by the brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.