The Indian Railways has always played a key role in India’s transport system and an important role in the Indian economy. In the Interim Budget for 2024-2025, the government kept ₹ 2.55 lakh crore budget for Indian Railways. This is 5.8% more than the 2023-24 budget, making railway stocks an attractive option for investors.
In this article, we will cover the Indian railway stocks list with pricing, expected future growth, and much more for investors interested in railway sector share lists or railway company stocks. Let’s get started.
Best Railway Stocks
IRFC Ltd.
IRFC (Indian Railway Finance Corp Ltd) was established in 1986. It is the only company that finances Indian Railway entities such as Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited, Rail Land Development Authority, RailTel Corporation of India, and Pipavav Railway Corporation Limited, making it a monopoly stock.
| Stock Name | IRFC Ltd. |
|---|---|
| Market Cap | ₹ 1,98,641 Cr. |
| 52W High | ₹ 229 |
| 52W Low | ₹ 99.6 |
| Stock P/E (TTM) | 30.5 |
| Book Value | ₹ 39.4 |
| Dividend Yield | 1.00 % |
| ROCE | 5.73 % |
| ROE | 13.7 % |
| Face Value | ₹ 10.0 |
RVNL Ltd.
Rail Vikas Nigam Limited (RVNL) is a public sector undertaking (PSU) stock under the Ministry of Railways, established in 2003 to speed up the implementation of rail infrastructure projects across India. RVNL is responsible for building new railway lines, doubling existing tracks, electrification, and upgrading major routes.
| Stock Name | Rail Vikas Nigam Ltd. |
|---|---|
| Market Cap | ₹ 89,562 Cr. |
| 52W High | ₹ 647 |
| 52W Low | ₹ 181 |
| Stock P/E (TTM) | 70.1 |
| Book Value | ₹ 38.1 |
| Dividend Yield | 0.48 % |
| ROCE | 18.7 % |
| ROE | 20.4 % |
| Face Value | ₹ 10.0 |
IRCON International Ltd.
IRCON International Ltd. engages in the provision of engineering and construction services. It specializes in major infrastructure projects, including railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, extra high voltage substations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities.
| Stock Name | IRCON International |
|---|---|
| Market Cap | ₹ 20,484 Cr. |
| 52W High | ₹ 352 |
| 52W Low | ₹ 175 |
| Stock P/E (TTM) | 22.2 |
| Book Value | ₹ 65.7 |
| Dividend Yield | 1.42 % |
| ROCE | 18.2 % |
| ROE | 16.4 % |
| Face Value | ₹ 2 |
Titagarh Rail Systems Ltd.
Titagarh Rail Systems Ltd. is a private company in Kolkata, India, specializing in the manufacturing and sale of freight wagons, passenger coaches, and steel castings. The company operates in various segments, including Freight Rolling Stock, Passenger Rolling Stock, Shipbuilding, and Others. Established in 1997, it designs and constructs warships and self-propelled vessels.
| Stock Name | Titagarh Rail Systems Ltd. |
|---|---|
| Market Cap | ₹ 14,993 Cr. |
| 52W High | ₹ 1,897 |
| 52W Low | ₹ 781 |
| Stock P/E (TTM) | 49.3 |
| Book Value | ₹ 175 |
| Dividend Yield | 0.07 % |
| ROCE | 25 % |
| ROE | 18.1 % |
| Face Value | ₹ 2 |
IRCTC Ltd.
Indian Railway Catering & Tourism Corporation (IRCTC) was founded on September 27, 1999, and is based in New Delhi, India. It offers railway-related services like Catering and Hospitality, Packaged Drinking Water, Internet Ticketing, Travel and Tourism.
| Stock Name | IRCTC Ltd. |
|---|---|
| Market Cap | ₹ 63,548 Cr. |
| 52W High | ₹ 1148 |
| 52W Low | ₹ 765 |
| Stock P/E (TTM) | 52.8 |
| Book Value | ₹ 44 |
| Dividend Yield | 0.82 % |
| ROCE | 53.8 % |
| ROE | 40.4 % |
| Face Value | ₹ 2 |
Rites Ltd.
Rites was founded in 1974, headquartered in Gurgaon, India. RITES Ltd. provides transport and infrastructure services. It operates in four segments:
- Consultancy services
- Leasing of railway rolling stock and equipment
- Export of rolling stock, equipment, and spares
- Turnkey construction projects.
| Stock Name | Rites Ltd. |
|---|---|
| Market Cap | ₹ 14,074 Cr. |
| 52W High | ₹ 413 |
| 52W Low | ₹ 253 |
| Stock P/E (TTM) | 35.3 |
| Book Value | ₹ 53.8 |
| Dividend Yield | 3.93 % |
| ROCE | 25.4 % |
| ROE | 17.5 % |
| Face Value | ₹ 10 |
Benefits of Investing in Railway Stocks
There are many advantages to investing in Indian railway stocks. Some important ones are listed below:
- Diversification: Investing in an Indian railway stocks list can help an investor diversify their portfolio and reduce overall risk. Railway stocks are less correlated with other asset classes, such as stocks and bonds, which can help reduce an investor’s portfolio volatility.
- Long-Term Investment: With a long history of growth, the railway industry offers consistent returns. Investors tracking Indian railway stock prices can take advantage of the market’s cyclical nature to profit from infrastructure growth and rising demand.
- Dividends: Many railway companies pay dividends, which can provide investors with a steady income stream, making railway sector share list options attractive for income-seeking investors.
- Government Support: The government frequently supports companies’ railway stocks, which can offer a variety of advantages. For example, the government may offer subsidies for railway construction and operation. It has the potential to help railway companies reduce their operational costs.
- Increasing Demand: Population growth, urbanisation, and economic growth all contribute to an increase in demand for railway services. This rising demand is expected to result in increased revenue, higher railway share prices, and more opportunities for investors focused on the Indian railway stocks.
Conclusion
The railway business has always been a popular choice for investments due to its size, government support, constant expansion, technical advancements, and diversified services. Despite the recent dip in railway stock prices, the sector’s solid fundamentals indicate that it will continue to develop over time. However, the industry is significantly influenced by government laws, therefore investors should do an extensive study before making investment decisions.
Disclaimer: This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.