Railways was among the last sectors to get re-rated due to the policy focus. But the speed at which the stocks got re-rated was very sharp. Whether it was companies which are financing the expansion of railways or private sector companies which are making coaches in the last eighteen months all of them have done extremely well . After they reach a certain level of valuations where they may not be classified as cheap. The question is whether the policy push which may continue in coming years will make their bottomline move up sharply which ensures that not only valuations are taken care of but also there is continued re-rating.
