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When you come across the words “Best Railway Stocks in India” or “Top Railway Stock in India,” you can’t help but feel excited about the potential for multifold returns from these stocks. And why wouldn’t you?
And it’s not unfounded excitement – after all, the Indian railway system is the backbone of our economy. India has one of the biggest railway systems globally all managed under one umbrella efficiently transporting goods and people across vast distances.
The Indian railway network is not only huge but also plays an important role in long distance travel and transporting bulk commodities.
The government has recognized the importance of investing in railway infrastructure and has implemented investor friendly policies to encourage growth. Initiatives like allowing Foreign Direct Investment (FDI) in railways aim to enhance infrastructure for both freight and high speed trains. Currently, numerous domestic and foreign companies are eyeing investments in Indian rail projects.
Given these developments the demand for railway stocks is on the rise presenting lucrative opportunities for investors.
Whether you are a seasoned investor or a newcomer individuals looking to capitalize on the growth potential of the railway sector must conduct comprehensive analyses to maximize their returns in this dynamic market environment.
List of Best Railway Stocks:
- IRFC
Indian Railway Finance Corporation (IRFC) is a government owned company that was established in December 1986 to raise funds from both domestic and international markets to meet the financial needs of the railway sector. This company operates as a top-tier public sector enterprise under the Ministry of Railways, Government of India. IRFC has played a role in financing the acquisition of various railway assets, including 13,349 locomotives, 73,979 passenger coaches and 2,59,661 freight wagons.
As of now, IRFC is among the top five companies in the Indian Railway Share List. It operates as a wholly owned subsidiary with the government holding an 86.4% stake.
One of IRFC’s achievements is raising ₹1,04,369 crores which is its highest ever target for raising funds for the railways. The company has provided funding to various entities in the railway sector such as Rail Vikas Nigam Limited (RVNL), Railtel Corporation, Konkan Railway Corporation Limited (KRCL) and others.
- IRCTC
Indian Railway Catering and Tourism Corporation commonly known as IRCTC is a government owned company established in 1999 under the Ministry of Railways. It provides various services such as catering, hospitality, internet ticketing and travel and tourism for the Indian Railways. One of its initiatives is the production and distribution of Packaged Drinking Water under the brand name Rail Neer.
It aims to upgrade and professionalize railway services ensuring a seamless travel experience for passengers.
- CONCOR
CONCOR is a well known company in the railway industry operating under the Indian Ministry of Railways. Established in 1988, CONCOR is considered a Navratna company and specializes in providing comprehensive logistics solutions for containerized cargo which includes storage, handling and transportation.
The company is primarily focused on two divisions: Domestic and EXIM. Domestic division handles services within the country offering terminal handling, door delivery, pickups and discounts for high volume clients. EXIM division deals with international trade providing facilities for importers, exporters and shipping agents to manage their documentation, billing, and printing through web based applications.
Over the years it has expanded its services to include not only rail transportation but also management of ports, air cargo complexes and cold chain logistics. Its aim is to provide efficient and cost effective solutions for both domestic and international cargo movement contributing to the country’s economic growth and development.
- RVNL
RVNL is a government owned company that works on railway infrastructure projects in India. RVNL focuses on building new railway lines, upgrading existing tracks and modernizing railway stations. RVNL also works on electrifying railway lines. RVNL is ranked fourth among railway stocks. It was established in 2003 to carry out projects for the Ministry of Railways.
RVNL manages the entire project development cycle from planning to execution. Some of their projects include Diva Kalyan 5th and 6th Lines, Gurup Saktigarh Extension of 3rd Line and Karjoda Palanpur Doubling. Currently, RVNL is working on Golden Quadrilateral reinforcement projects. They are involved in adding new rail lines, electrifying railways, building major bridges, and other workshops.
- Ircon International
Ircon International Limited started out in 1976 as a company focused on building railways. Over time it expanded its scope and began working on various types of large infrastructure projects, like highways. Ircon is a government owned company that is highly regarded in the industry especially for its expertise in railway and highway construction.
Ircon, also known as Indian Railway Construction International Limited has completed over 300 projects in India and more than 100 projects in 21 different countries including Malaysia, Ethiopia, Nepal, Afghanistan, Bangladesh, Algeria, Mozambique, the United Kingdom, and Sri Lanka.
- RITES Ltd.
RITES Limited is a government owned company established in 1974. It specializes in engineering and consultancy services for transportation infrastructure. RITES is highly regarded in India ranking among the top 500 listed companies. It offers a wide range of services including railways, highways, metros, bridges and more.
RITES has a strong presence both domestically and internationally with projects in over 55 countries across Asia, Africa, Latin America and the Middle East. RITES is known for its expertise in areas such as rolling stock (like locomotives and coaches) and urban engineering.
Overall, RITES is recognized for its quality solutions and skilled professionals making it a preferred choice for clients worldwide.
The graph provides a snapshot of key financial metrics for the companies discussed so far including market capitalization, PE ratio, promoter holding, one year return and profit after tax for 2024.
In addition to the top shares we’ve discussed in this blog there are several other stocks in the Indian railway sector that investors may want to keep an eye on for further insights and opportunities.
- Jupiter Wagons
Jupiter Wagons Limited based in Kolkata, India manufactures railway freight wagons, passenger coaches and components. Jupiter Wagons supplies Indian Railways and private firms with a diverse product range including various wagon types and accessories. The market cap is ₹15,920.72 Cr, PE ratio is 59.11 and promoter holding is 70.12% (Q3 2023). Jupiter Wagons stock surged 268.29% and recorded Profit after tax of ₹125.38 Cr in 2023. They operate manufacturing facilities in West Bengal, Madhya Pradesh and Jharkhand.
- Titagarh Rail Systems Ltd.
Titagarh Wagons is a leading player in the railway sector specializing in manufacturing wagons, coaches and steel castings. They are known for their diverse range of freight wagons, catering to both domestic and international markets.
Established in 1997 they are the second largest freight wagon manufacturer in India with a capacity to produce 8,400 wagons, 200 metro coaches and 36 electric multiple unit coaches annually they generate around 35% of their revenue from this segment. Titagarh Rail Systems Ltd. has a market capitalization of ₹13,298.36 crore, PE ratio of 49.9 and a promoter holding of 42.46% (Q3 2023). Titagarh Rail stock surged 359.81% and recorded profit after tax of ₹103.37 crores in 2023.
- BEML
BEML a public company in the railway sector manufactures mining, construction equipment, defense products and railway rolling stock. Established in 1964 it’s the second largest earthmoving equipment manufacturer in Asia controlling 70% of India’s market share. They also produce rail coaches for suburban trains. BEML’s market cap is ₹13,081.16 crore with a PE ratio of 71.05 and a promoter holding of 54.03% (Q3 2023). BEML stock surged 119.64% in 1 year and recorded profit after tax of ₹158.78 crores in 2023.
- Texmaco Rail & Engineering Ltd.
Texmaco Rail & Engineering is a leading engineering company in the Indian railway sector offering diverse products and services. With a presence in rail and metro systems, steel foundry, and heavy engineering they provide turnkey solutions for metro rail projects. Established on the outskirts of Kolkata they have a market cap of ₹7,254.68 crore, PE ratio of 87.17 and a promoter holding of 50.16% (Q3 2023). Texmaco Rail stock surged 294.27% in 1 year and recorded profit after tax of ₹19.84 crores in 2023.
