What's new in Indian Railway sector?
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.
Best Railway Stocks in India
The table below showcases the top Railway stocks in India right now based on multiple factors.
| Company Name | Market Cap (in Cr) | Current Price | PE Ratio |
|---|---|---|---|
| Indian Railway Finance Corporation Ltd | ₹ 1,84,201 | ₹ 141 | 30.5 |
| IRCTC | ₹ 74,296 | ₹ 929 | 65.4 |
| Rail Vikas Nigam Ltd | ₹ 52,094 | ₹ 250 | 35.8 |
| Titagarh Rail Systems Ltd | ₹ 11,931 | ₹ 886 | 46.7 |
| Texmaco Rail & Engineering Ltd | ₹ 6,241 | ₹ 163 | 75.0 |
An Overview on Railway Sector Stocks
In the domain of Railway shares in India, numerous key players have emerged that provide diverse options for investment. Here is a list of the top Railway stocks in 2024
Indian Railway Finance Corporation Ltd
Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways. The objective of this company is to mobilise funds for railways from domestic as well as overseas markets. The company has funded various railway projects. Moreover, they have also been lending funds to various entities in the railway sector such as Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.
IRCTC
IRCTC is a Mini Ratna for the Government of India. It is a major and extended arm of railways. It was incorporated on 27th September 1999 to upgrade, professionalize and manage railway services provided to travellers.
It offers an extensive range of services catering to all the various needs of a traveller. Some of the prevalent services include mobile catering, bottled drinking water, retiring rooms, dormitories, executive lounges, and many more.
Rail Vikas Nigam Ltd
Rail Vikas Nigam Limited, or RVNL, is completely involved in the development of rail infrastructure. Its main business includes infrastructure related to new lines, bridges, workshops, production units, electrification, etc.
Titagarh Rail Systems Ltd
Titagarh Wagons Limited (TWL) came into existence in 1997 and it is the second-largest freight wagon manufacturer in India. The company manufactures freight wagons, passenger coaches, metro train coaches, train electricals and a lot more and generates 35% revenue from this segment. The company has the capacity to manufacture 8,400 wagons, 200 metro coaches and 36 electric multiple unit coaches, and process around 30,000 tonnes of casting steel, per annum.
Texmaco Rail & Engineering Ltd
Texmaco Rail & Engineering is a diversified engineering company with a strong presence in the Indian railway stock list. Operates as one of the best railway stocks in India via multiple business segments, including rail and metro systems, steel foundry, and heavy engineering. Texmaco Rail & Engineering manufactures a wide range of railway products. It also undertakes railway infrastructure projects and offers turnkey solutions for metro rail systems.
To Sum Up
If you had to name one Indian sector to bet on, many of you would certainly say Railways, right? But why? Probably because of its progressive nature, consistent growth, widespread network and promising future.
Note: The data is as of 24th March 2024. The list of best Railway stocks in India is derived from Market Cap, past perfromace, valuations and current order book. This is not a Financial Advice, please contact your financial advisor before investing or taking any trade. Team FinSort might have investments in any / all the stocks mentioned above.