Railway Stocks Like RVNL and IRCON International Rally Up to 34% This Week Amid Market Optimism

Shares of Indian railway public sector undertakings (PSUs) and private railway companies saw a strong rally this week, led by improved investor sentiment and renewed interest in state-run firms.

Strong Weekly Gains Across Railway Stocks

On Friday, May 16, railway stocks like Rail Vikas Nigam Ltd. (RVNL), IRCON International Ltd, RITES Ltd, RailTel, and Jupiter Wagons surged between 7% and 10%, extending their gains from earlier this week.

Here's a look at the top weekly performers:

Private sector player Titagarh Rail also witnessed a 34% rise, despite being down over 50% from its all-time high.

No Major Trigger, But Sentiment Is Positive

There was no major announcement driving this surge. However, improving market sentiment and growing interest in government-run companies is driving this rally. Many of these stocks had also corrected sharply from their 2024 highs, creating buying opportunities.

Despite this week's gains, several railway stocks are still significantly below their peak levels:

New Orders and Growth Outlook

Adding to the optimism, Rail Vikas Nigam Ltd. announced on Thursday that it secured a ₹116 crore order from Central Railway for OHE (Overhead Equipment) modification in the Itarsi–Amla section. The project is expected to be completed in 24 months.

As per CNBC-TV 18 news reprots, RITES Chairman and MD Rahul Mithal has said that the company is targeting a ₹10,000 crore order book by year-end and expects 20% revenue growth and 10% profit growth in FY26.

Meanwhile, IRFC is aiming for ₹30,000 crore in disbursements in FY26 and plans to diversify its loan book beyond Indian Railways.

Conclusion

Indian railway stocks are back in focus after a significant correction, driven by positive sentiment, order wins, and growth projections. Investors are showing renewed confidence in these companies as they prepare for the next phase of expansion.

Read more on: Dividend Stocks: SBI, IEX and 8 Others to Trade Ex-Dividend on May 16, 2025 
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