Last Updated on Feb 27, 2024 by Tejas Tank

For many decades, the Indian railway industry has been the backbone of the country’s transportation system. So much so is the impact of the railways on the economy that in the recent Interim Budget 2024-2025, an allocation of Rs 2.55 lakh cr. to the Indian Railways, showcasing a 5.8% increase from the previous year’s estimate. The highly anticipated railway sector stocks received a significant boost from the news as many railway stocks saw the most significant gains, posting double-digit growth within a single month.

In this blog, we will explore a list of railway stocks in India and select the best railways stocks based on certain parameters.

Railway stocks list with price

Railway StocksSub-SectorMarket Cap (Rs. in cr.)Close Price (Rs.)PE Ratio (%)
Indian Railway Finance Corp LtdSpecialized Finance2,01,647.05154.3031.82
Indian Railway Catering and Tourism Corporation LtdOnline Services74,336.00929.2073.90
Rail Vikas Nigam LtdSpecialized Finance51,885.73248.8536.53
Jupiter Wagons LtdRail14,461.20350.75119.73
Ramkrishna Forgings LtdRail13,194.55730.5053.18
Titagarh Rail Systems LtdRail12,930.70960.1599.31
BEML LtdRail12,697.623,049.0580.40
Texmaco Rail & Engineering LtdRail7,316.01190.85281.28
Oriental Rail Infrastructure LtdRail1,386.39257.20433.25

Note: The railway shares list is derived from Tickertape Stock Screener. The data represents railway share price list and is of 15th February 2024.


Best railway stocks in India

Railway StocksSub-SectorMarket Cap (Rs. in cr.)Close Price (Rs.)1Y Return (%)Fundamental Score
Jupiter Wagons LtdRail14,461.20350.75264.426.99
Rail Vikas Nigam LtdSpecialized Finance51,885.73248.85256.266.71
Indian Railway Catering and Tourism Corporation LtdOnline Services74,336.00929.2044.726.30
Indian Railway Finance Corp LtdSpecialized Finance201,647.05154.30429.335.52
BEML LtdRail12,697.623,049.05120.434.92
Texmaco Rail & Engineering LtdRail7,316.01190.85302.644.83
Titagarh Rail Systems LtdRail12,930.70960.15349.514.21
Ramkrishna Forgings LtdRail13,194.55730.50161.923.30

Note: The data is from 15th February 2024. The list of best railway stocks in India is derived from Tickertape Scorecard using the following criteria – 

1Y return – Med to high

Fundamental Score – Sorted from high to low

Fundamental Score: The score is a smallcase proprietary score between 1 and 10 assigned to stocks listed on the NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company.

Overview of best railway stocks in India

Jupiter Wagons Ltd

Jupiter Wagons Limited, previously known as Commercial Engineers & Body Builders Company Limited, specializes in producing railway wagons, passenger coaches, components for wagons, and castings within India.

This railway stock has recorded triple digit growth since the last year and is also showcasing exceptional performance and profitability signs on Tickertape Scorecard.


Rail Vikas Nigam Ltd

Rail Vikas Nigam is engaged in executing diverse Rail infrastructure projects, including the introduction of new railway lines, electrification of railways, construction of major bridges, and development of additional workshops. These projects are commissioned by the Ministry of Railways (MOR).

Since last year this midcap railway stock has recorded 256.26% growth. Also the investment from FIIs have increased in the last quarter.

Indian Railway Catering and Tourism Corporation Ltd

IRCTC holds the status of a Mini Ratna for the Government of India, acting as a crucial and expansive branch of the railways. Established on September 27, 1999, its purpose is to enhance, professionalize, and oversee the services offered to rail passengers. As of February 15, 2024, IRCTC boasts a market capitalization of Rs. 74,336 crore, making it a distinguished entity in the railway industry. The company has embarked on four primary initiatives:

  • Catering and Hospitality
  • Internet Ticketing
  • Travel and Tourism
  • Packaged Drinking Water (Rail Neer)

Since last year this midcap railway stock has recorded 43.56% growth and is showing good signs of profitability on Tickertape Scorecard.

Indian Railway Finance Corp Ltd

Established on December 12, 1986, the Indian Railway Finance Corporation (IRFC) serves as the exclusive financing branch of the Indian Railways. Its primary mission is to raise capital for railway projects from both domestic and international markets. Over the years, IRFC has financed a multitude of railway initiatives and has extended financial support to various organizations within the railway sector, including Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), and Pipavav Railway Corporation Limited (PRCL), among others.

Since last year, the share price of this railway company has witnessed triple-digit growth. Moreover, the revenue of this railway company has increased at a yearly rate of 20.89% over the last 5 yrs.

BEML Ltd

BEML, a Public Sector Undertaking (PSU), specializes in producing a diverse range of heavy machinery, including equipment for earthmoving, transportation, and mining activities. It stands as Asia’s second-largest producer of earthmoving equipment and holds a dominant 70% share of India’s market in this domain. Additionally, the company is involved in the manufacturing of rail coaches designed for suburban train services.

Over the course of an year, this small-cap railway stock has witnessed a growth of 120.89% and also showcased good signs of profitability on Tickertape Scorecard.

About Indian railway sector 

With over 1.4 mn employees, the Indian railway industry is the major contributor to the nation’s economy. It is the fourth largest railroad network in the world and spans thousands of kilometers, covering far-fledged regions nationwide. 

Scope of the Indian railway industry in 2024

The Interim Budget 2024-25 has allocated Rs 2.55 lakh cr. to the Indian Railways, showcasing a 5.8% increase from the previous year’s estimate. Finance Minister Nirmala Sitharaman, in her commitment to enhancing the country’s rail infrastructure, announced the launch of three major economic railway corridor programs. These initiatives, designed to streamline energy, mineral, and cement logistics, improve port connectivity, and upgrade high traffic density corridors, are pivotal under the PM Gati Shakti plan for multi-modal connectivity. This strategic move aims at boosting logistics efficiency and reducing operational costs across the board.

Further, the budget will facilitate the acquisition of modern Vande Bharat trains, expansion and doubling of rail tracks, and the nationwide implementation of the Kavach safety system. An ambitious upgrade will see 40,000 rail bogies enhanced to Vande Bharat standards, prioritizing passenger safety and comfort. Reflecting on the fiscal prudence and strategic investment, the railways reported a historic high in capital expenditure, underscoring a robust growth trajectory aligned with the National Rail Plan 2030. This plan envisions a substantial increase in freight capacity, setting a dynamic course for the future of Indian Railways.

Reasons to invest in railway stocks

Here are some reasons why investing in railway stocks may be a lucrative opportunity – 

  1. Government support: The Indian government’s commitment to improving the country’s transportation infrastructure is evident from the increased allocation of funds for the railways in the Interim Budget. This provides a stable foundation for railway stocks and gives investors confidence in the sector’s growth potential.
  2. Diverse projects: The new projects for FY 2024-25 includes three major economic railway corridor programs. These initiatives, designed to streamline energy, mineral, and cement logistics, improve port connectivity, and upgrade high traffic density corridors, are pivotal under the PM Gati Shakti plan for multi-modal connectivity.
  1. Passenger expectations: With increased passenger expectations, the railways plans to refurbish 40,000 rail bogies similar to Vande Bharat standards, prioritizing passenger safety and comfort. The upgraded interiors with a modern look will enhance passenger comfort and satisfaction, which could translate into higher demand for railway services.
  2. Long-term investment option: Railway stocks are typically viewed as long-term investments, as the infrastructure required for the railway system takes time to build and maintain. It allows investors to invest in a sector that is likely to grow steadily over the long term.

Conclusion

Introducing new projects, refurbishing premier coaches, and increasing the allocation of funds for track renewal in the Union Budget presents a compelling opportunity for investors looking to diversify their portfolios and benefit from the growth potential of the railway sector. Additionally, the government’s commitment to improving the country’s transportation infrastructure provides a stable foundation for railway stocks, making them a promising investment opportunity.

FAQ

Which is the best railway stock in 2024?

Based on 1 month returns, Indian Railway Finance Corp Ltd and Rail Vikas Nigam Ltd generated double-digit returns, outperforming other railway stocks in India.

Among the railway stock list, which railway stock has generated the highest returns in the last 1-yr?

Indian Railway Finance Corp Ltd recorded an exceptional growth of 429.33% in the last 1-yr.
Harshit Singh
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