Overview of Railway Sector
The Indian Railway covers a mammoth 67,850km route and employs 1.4 million people. Although the sector was traditionally run by government-owned companies, regulators are slowly privatising it – especially when it comes to modernising tickets, engineering and other operational spheres. In terms of railway stocks India is poised to see an uptick in demand.
Why are Railway Stocks in Demand?
The increasing population and growing income levels means that the demand for railway services is not going to reduce anytime soon. Additionally, the massive size of the Indian railway network means that private and public companies which bag lucrative deals related to the railways i.e. Indian railway shares are going to stay in business for the foreseeable future.
List of Railway Stocks
The following are some of the best railway stocks in India –
|Name of the Company||P/E Ratio (TTM)||EPS (TTM)|
|Titagarh Wagons Ltd||48.36||-1.39|
|Texmaco R&E Ltd||60.28||-0.13|
|RailTel Corp. Ltd||16.94||6.66|
|Ircon International Ltd||6.24||6.88|
- IRCTC Ltd. – The company focuses on ticketing, catering and tourism. Its market cap is worth ₹59,232 cr and this year, it has seen major profits of ₹664 cr. In the last 12 months, the price of this rail stock has fallen by 12.8%, although the price has recently started to increase post-July.
- CONCOR Ltd. – The Container Corporation of India Ltd. is focused on transportation and handling of containers. Its market cap is worth ₹46,267 cr and it has seen a whopping ₹1055 cr profit in 2022. In the past 12 months, the stock price has increased by 16.95%.
- IRFC Ltd. – The Indian Railway Finance Corporation Ltd. handles the financing side of the Indian railways. Its market cap is worth ₹28,685 and it has seen profits worth ₹6090 cr in the last 12 months. The share price has decreased by 10.80% in the past 1 year.
- Rail Vikas Nigam Ltd. – It is a special purpose vehicle (SPV) conducting development projects related to the railways, specially focused on the golden quadrilateral. It has consistently increased its profits to about ₹1183 cr in 2022 and currently has a market cap of ₹8225 cr. In the last year, the stock price has increased by 9.5%.
- RITES Ltd. – It is an India-based engineering and consultancy company that conducts projects, not only in railways but also in other transport systems. It is worth ₹9190 cr and has made a profit of ₹516 cr in 2022. The last 12 months has seen the share price of this rail stock increase by 29.01%.
- BEML – Apart from rail and metro, BEML also conducts projects in Aerospace and Defence as well as mining and construction. It is worth ₹6497 cr and has seen profits of ₹129 cr in 2022. In the last one year, the share price has fallen by 1.21%, although it is growing slightly in recent times.
- Titagarh Wagons Ltd. – It builds both rail rolling stock as well as other defence and shipbuilding equipment. The company has a market cap of ₹1894 cr and has made a loss of ₹0.33 cr in 2022 (though the amount of losses has been steadily decreasing). The share price of this rail stock has seen a growth of a whopping 59.76% in the preceding 1 year.
- Texmaco Rail & Engineering Ltd. – The company is worth ₹1527 cr and has made a profit of ₹20.5 cr. It builds various railway components such as freight cars, railbridge steel components etc. The share price has seen an increase of 38.68% in the last 12 months.
- RailTel Corp Ltd. – RailTel Corporation of India Ltd. is an India-based neutral telecommunications infrastructure company which owns the optic fibre network on Right of Way (ROW) along railway tracks across India. The company is worth ₹3622 cr and has made profits of ₹209 cr in 2022. The share price has fallen by 13.22% in the last 12 months.
- Ircon International Ltd. – It is a ₹4040 cr company which has made a profit of ₹592 cr in 2022. It is an India-based company which provides engineering, procurement and construction (EPC) services for railway infrastructure projects. The share price has fallen by 10.18% in the last 1 year.
Now that you know about the major Indian railways stocks, try opening a demat account and start investing in such rail stocks today!
Is the Indian railway network going to expand in the coming years?
Indian Railways has prepared the National Rail Plan for 2030 which aims to increase the national modal share of railways in freight to 45% as well as improve its quality of service and operational capacity. So yes, the government is signalling major investments in the railway sector in the coming years.
What is the Golden Quadrilateral?
It is a highway network route connecting Delhi, Kolkata, Mumbai and Chennai. It is the largest highway network in India and the fifth largest in the world.
Which is the best railway stock in India?
A lot of the stocks mentioned above can be claimed to be the best rail stock of India. WHich stock you will be most comfortable with depends on your risk appetite and trading philosophy.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and not recommendatory.