Best Railway Stocks in India 2024

  • 24 Mar 2024
  • Read 16 mins read

Railways are a vital transportation system for millions of Indians, providing affordable and efficient travel. With a rich history spanning over 160 years, the Indian Railway share list has evolved to meet the growing needs of the rapidly developing economy. All India railway stocks sector is connected to various businesses, it offers various investment opportunities, including all railway shares in India, leading to a growing need for Indian railway stocks. This demand has also boosted the IRCTC share of companies manufacturing railway components, making Indian railways a rich industry. Let us explore good railway stocks more in this blog. 

Everything About the Railway Sector

India's railway system is the fourth-largest globally, following the US, Russia, and China. It covers vast distances and is the backbone of the nation's economy. Investors looking for stable and reliable returns may consider adding good railroad stocks to their portfolio, The Railways Board oversees the entire infrastructure, ensuring smooth operation and development. The Indian railway system is known for its efficiency, affordability, and energy-efficient transportation capabilities. It also serves as the primary carrier for automobiles across the country.

The Indian government has implemented investor-friendly policies to strengthen railway infrastructure, attracting foreign direct investment (FDI) to enhance freight transport and high-speed trains. This has led numerous domestic and international companies to consider investment opportunities in Indian rail projects. As of the latest data, the Indian Railways has an extensive track length of 126,366 kilometers and 7,335 strategically located stations. Significant progress has been made in track expansion, with 5,243 kilometers of new track laid during the fiscal year 2022-23, marking the highest commissioning rate in the history of the railways.

The railways efficiently manage 13,523 passenger trains and 9,146 freight trains daily. In the fiscal year 2022-23, the railways achieved record-breaking freight transportation, loading 1,512 million tonnes, surpassing the previous year's 1,418 million tonnes. This milestone highlights the robustness and efficiency of the railway network in facilitating cargo movement across the nation.


All Railway Stocks in India

Below are the listings of some of the best Railway stocks in India presented in the table 

NameCurrent Market Price52-Week High52-Week LowMarket Capitalisation( INR) 
Indian Railway Catering and Tourism Corporationrs. 910.30₹1,049₹557.10₹730.60 billion
Bharat Electronics Limited188.85216.8089.651.38 trillion
Container Corporation of India Limited866.55₹1,027.65₹555528.26 billion
Indian Railway Finance Corporation₹153.85₹192.80₹25.40₹1.79 trillion
Rail Vikas Nigam Ltd₹246.90345.5060.30₹512.71 billion
Bharat Earth Movers Limited₹2,850.004,144.25₹1,128₹116.15 billion 
Ircon International₹218.00₹280.8551.65₹203.57 billion
Texmaco Rail and Engineering Ltd₹165.20 ₹231.80₹40.60₹63.41 billion
Titagarh Rail Systems₹844.00₹1,248.90228.00₹114.16 billion
Jupiter Wagons Ltd₹351.50₹434.00₹85.20₹139.75 billion 
ARSS Infrastructure Projects Ltd₹20.50 ₹28.25₹16.40₹466.13 million

Disclaimer: All the stock prices, market capitalization, Current Market Price, 52-Week High

, 52-Week Low, Market Capitalisation (in crores) mentioned above are accurate as of March 12, 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks. 

Overview of Best Railway Stocks in India

The Indian railway sector has several prominent companies offering investment opportunities. Let's get into the best railway stocks and their overview:

  1. Indian Railway Catering Tourism Corporation Ltd (IRCTC):

    IRCTC, a major player in India's railway system, offers catering and tourism services to passengers. With a market capitalization of ₹730.60 billion, it provides quality food options and facilitates tourism through package tours, hotel bookings, and e-ticketing.
  2. Bharat Earth Movers Limited (BEML):

    Bharat Earth movers  Limited (BEML) is a prominent player in the defense electronics sector, boasting a market capitalization of ₹116.15 billion. BEML is renowned for its technological advancements and contributions to India's defense infrastructure.
  3. Titagarh Wagons Limited (TWL):

    TWL, a leading Indian freight wagon manufacturer, produces passenger and metro train coaches. With a market cap of Rs.114.16 billion.
  4. Container Corporation of India Limited (CONCOR):

    Container Corporation of India Limited, a Navratna PSU, is a significant player in India's trade ecosystem, focusing on containerized freight and international trade facilitation, with a market cap of ₹528.26 billion.
  5. Indian Railway Finance Corporation Ltd (IRFC):

    IRFC, the Indian Railways' financing arm, is a key player in funding railway projects, with a market cap of Rs.1.79 trillion.
  6. Bharat Electronics Limited (BEL):

    BEL, a state-owned aerospace and defense company, emphasizes research and development. With a market cap of Rs. 1.38 trillion. Its debt-free status and focus on innovation position it as a strong contender in the defense sector.
  7. Rail Vikas Nigam Ltd (RVNL):

    RVNL specializes in rail infrastructure projects like new lines and electrification. Its market cap is Rs. 512.71 billion. RVNL's involvement in critical railway projects underscores its importance in infrastructure development.
  8. Ircon International:

    Ircon, a construction company, diversifies into complex infrastructure projects. With a market cap of Rs. 203.57 billion Its expertise in large-scale projects and strong financial metrics make it a significant player in the infrastructure sector.

Features of Indian Railways Shares 

Check out the features of Indian Railways share below. 

  1. Vital Role in Transportation Infrastructure and Economic Development

    India's railway sector is crucial for the nation's transportation infrastructure and economic development, boasting the fourth largest network globally, covering over 68,000 kilometers.
  2. Facilitating Mobility Needs

    The sector plays a significant role in facilitating the movement of people and goods, meeting India's mobility needs effectively.
  3. World's Largest Passenger Carrier

    As the world's largest passenger carrier, Indian railways transport millions of passengers daily, fulfilling the mobility needs of India's extensive population.
  4. Contribution to Goods Transportation

    Indian railways contribute to goods transportation by facilitating the movement of essential commodities and industrial goods, offering diverse services such as catering, tourism, parcel delivery, and various train types.
  5. Investments in Modernization and Expansion

    To stay ahead of technological trends and increasing demands, Indian railways are investing in modernization and expansion projects. These investments focus on leveraging advanced technologies to enhance operational efficiency, passenger comfort, and freight logistics.
  6. Extensive Network Coverage

    The extensive railway network spans across plains, mountains, and remote terrains, connecting major cities, towns, and rural areas. This extensive coverage facilitates economic activities, promotes tourism, and fosters social connectivity.
  7. Modernization Initiatives

    Ongoing modernization initiatives within the Indian railway sector aim to enhance operational efficiency, safety standards, and service quality. These initiatives align with global best practices and sustainability goals, ensuring the sector remains efficient and environmentally friendly.

How to Invest in the Best Rail Stocks in India?

The Indian railway sector offers various investment options for individuals seeking exposure to the industry. These include purchasing individual railway stocks, investing in mutual funds specializing in railway stocks, or considering exchange-traded funds (ETFs) focused on the railway industry. Additionally, systematic investment plans (SIPs) in railway-focused mutual funds or ETFs can be a strategic approach for consistent and disciplined investing. To make informed decisions, investors should conduct thorough research and analysis, aligning their long-term investment goals and risk tolerance with these strategies.

Individual railway stocks involve purchasing shares of specific railway companies listed on stock exchanges, providing exposure to their performance and potential growth prospects. Mutual funds and ETFs offer diversified exposure to the railway sector by investing in a basket of railway stocks managed by professional fund managers. SIPs in railway-focused mutual funds or ETFs allow investors to invest a fixed amount regularly at predefined intervals, offering benefits such as rupee-cost averaging and facilitating long-term wealth creation.

Benefits of Investing in Best Railway Stocks in India

The Indian railway sector is experiencing significant growth due to government support, new technologies, and rising demand, attracting investors who see potential in railway stocks for several key reasons.

  • Government Backing: The Indian government is dedicated to enhancing its transportation infrastructure, as evidenced by the increased budget allocation for railways in the Interim Budget, fostering investor confidence in the sector's growth potential.
  • Diverse Projects: The fiscal year 2024-25 projects include three major economic railway corridor programs, aimed at optimizing logistics for energy, minerals, and cement, improving port connectivity, and upgrading busy corridors, as part of the PM Gati Shakti plan for multi-modal connectivity.
  • Meeting Passenger Expectations: The railways are upgrading 40,000 rail bogies to Vande Bharat standards, prioritizing passenger safety and comfort. Modernized interiors could enhance passenger experience and satisfaction, potentially increasing demand for railway services.
  • Long-term Investment Opportunity: Railway stocks are considered long-term investments due to their long-term growth potential and the potential for investors to participate in a sector with promising prospects, as building and maintaining railway infrastructure takes time.

The Indian railway sector's recent growth, supported by government and technological advancements, presents promising opportunities for investors seeking long-term stability.

Tips and Strategies for Investing in Rail Stocks

The tips provided make it easier to navigate the railway share market confidently and benefit from its growth and stability.

  • Do Your Research: Research rail stocks thoroughly to understand the company's business model, financial performance, and competitive position, as this knowledge will guide your investment decisions.
  • Think Long Term: Railway shares in India are a long-term investment with potential for steady growth, so it's crucial to have a patient outlook and be willing to hold onto your investments for the long haul.
  • Diversify Your Portfolio: Diversification is crucial for reducing risk and minimizing potential losses in railway shares, as it involves investing in a variety of stocks to spread out your investment. 
  • Regularly Rebalance Your Portfolio: Regularly review and rebalance your rail stock portfolio to ensure your investments align with your risk tolerance and investment objectives. 
  • Consider Stop-Loss Orders:Stop-loss orders are a strategic method to protect profits or limit losses by automatically selling shares in the company when IRCTC share drops significantly. 
  • Be Patient: Investing in rail stocks is a long-term strategy, so don't expect instant wealth. Stick to your strategy, allowing your investments to grow and yield returns.

Before investing in the best Indian railway stocks in India, it's crucial to conduct thorough research or consult a financial advisor for informed decisions and market confidence.

The Indian railway sector offers long-term stability and growth opportunities due to government support, diverse projects, and rising demand. Railway stocks are attractive due to efficiency, extensive network coverage, and modernization initiatives. Investors can navigate the market confidently by following prudent strategies, conducting thorough research, and diversifying portfolios. You can experience the simplest online trading with BlinkX and enjoy trading with zero brokerage fees. Free yourself from traditional constraints by entering the BlinkX share market app. Staying updated on industry advancements and consulting financial advisors are essential for informed investment decisions in best railway stocks in India.

FAQs on Best Railway Stocks in India

Railway stock can fluctuate due to economic conditions, transportation sector policy changes, market demand, fuel prices, operating costs, and investor sentiment, affecting the railway industry.

Technological advancements, such as high-speed rail infrastructure, digital signaling systems, automation, and eco-friendly practices, are transforming railway stocks, enhancing efficiency, cost-effectiveness, and sustainability, boosting investor confidence and stock performance.

Railway stocks carry risks like regulatory changes, competition, economic downturns, operational challenges, and unforeseen events like natural disasters or geopolitical tensions, affecting passenger and freight demand, maintenance costs, and safety.

Regularly following news updates, industry reports, financial analyses, attending investor conferences, and consulting with transportation and logistics sector financial advisors can provide valuable insights for informed investment decisions in best railway stocks.

Government funding significantly impacts railway stocks' performance, influencing infrastructure development, maintenance, and modernization. Increased investment, subsidies, and policy support can boost financial health, growth prospects, and investor confidence.