Best Railway Stocks in India 2024

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. It recorded a revenue of ₹2.40 Lakh Cr. in FY 2022-23, reflecting 25% growth. The freight revenue also increased to ₹1.62 lakh Cr, rising 15%. All railway stocks are involved in various businesses, offering various investment opportunities. 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 listed on the NSE based on their PE ratio. 

Everything About the Railway Sector

Indian railway is the fourth-largest globally, after the US, Russia, and China. The Railways Board oversees the smooth operation and development of railways. Currently, the Indian Railways has a track length of 126,366 kilometres and 7,335 stations. Significant progress has been made in track expansion, with 5,243 kilometers of new track laid in the fiscal year 2022-23, marking the highest commissioning rate ever. The railways manage 13,523 passenger and 9,146 freight trains daily. In FY 2022-23, the railways transported 1,512 million tonnes of freight. This milestone highlights the strength and efficiency of the railway network in facilitating cargo movement.

All Railway Stocks in India

Below are the listings of some of the leading railway stocks in India listed in the table. 

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
 

Overview of Railway Stocks in India

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

Indian Railway Catering Tourism Corporation Ltd (IRCTC)

• IRCTC, a major player in India's railway system, offers catering and tourism services to passengers. 
• It provides quality food options and facilitates tourism through package tours, hotel bookings, and e-ticketing.
• The company is almost debt-free.
• The company's line of bottled drinking water is called Rail Neer. 
• With four in-house production facilities and twelve using the public-private partnership (PPP) model, it runs about sixteen Rail Neer plants.

Get more details about Indian Railway Catering Tourism Corporation Ltd (IRCTC) share price here.

Know the Indian Railway Catering Tourism Corporation Ltd (IRCTC) Share Price History here.

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.
• It offers multi-modal logistics support for India's international and domestic trade.
• The two business segments of the company are EXIM and Domestic. 
• The company's handling, transportation, and warehousing departments are both involved in these tasks. 

Get more details about Container Corporation of India Limited (CONCOR) share price here.

Know the Container Corporation of India Limited (CONCOR) Share Price History here.

Indian Railway Finance Corporation Ltd (IRFC)

• IRFC, the Indian Railways' financial arm, plays an important role in funding railway developments.
• It generates funds through capital markets and borrowings and covers the railways' Extra Budgetary Resources (EBR) requirements with competitive prices and conditions.
• Additionally, it lends money to IRCON and Rail Vikas Nigam Limited (RVNL).
•  It raises money from a number of sources, including bonds and term loans from both domestic and foreign markets.

Get more details about Indian Railway Finance Corporation Ltd (IRFC) share price here.

Know the Indian Railway Finance Corporation Ltd (IRFC) Share Price History here.

Rail Vikas Nigam Ltd (RVNL)

• RVNL specializes in rail infrastructure projects like new lines and electrification.
• RVNL's involvement in critical railway projects underscores its importance in infrastructure development.
• It develops and implements projects about rail infrastructure, including their finance and execution.
• Various ministries, agencies, and public sector initiatives of the federal and state governments are among its clients.

Get more details about Rail Vikas Nigam Ltd (RVNL) share price here.

Know the Rail Vikas Nigam Ltd (RVNL) Share Price History here.

Ircon International 

• Ircon, a construction company, diversifies into complex infrastructure projects.
• Its experience with large-scale projects and good financial metrics make it a key participant in the infrastructure sector.
• For a range of infrastructure projects, it provides engineering, procurement, and construction (EPC) services on an item-rate, lumpsum turnkey, and EPC basis. 
• In collaborative ventures with other central public sector companies (CPSEs) under the Ministry of Coal, the company implements coal connection products.

Get more details about Ircon International share price here.

Know the Ircon International Share Price History here.

ARSS Infrastructure Projects Ltd

• ARSS infrastructure was established in 2000. It is engaged in the construction business including railway infrastructure. 
• Over the years, the firm has built expertise in working on railway projects. 
• It now builds bridges, supplies ballast & sleepers, and also links tracks.
• It operates business in many Indian states as well as in other nations, including Bangladesh, Sri Lanka, Malaysia, and Nepal.

Get more details about ARSS Infrastructure Projects Ltd share price here.

Know the ARSS Infrastructure Projects Ltd Share Price History here.

Texmaco Rail and Engineering Ltd 

• Texmaco Rail & Engineering Ltd is a freight car manufacturer. 
• It is the largest supplier of wagons to the Indian Railways. 
• It also designs and manufactures special-purpose wagons for core sectors like cement, alumina, oil, fertilizers, and the defence sector.
• Belur Engineering Private Limited, Texmaco Rail Systems Private Limited, Texmaco Rail Electrification Limited, Texmaco Transtrak Private Limited, and Texmaco Engineering Udyog Private Limited are some of the company's subsidiaries.

Get more details about Texmaco Rail and Engineering Ltd share price here.

Know the Texmaco Rail and Engineering Ltd Share Price History here.

Titagarh Wagons Limited (TWL)

• TWL, a major Indian goods wagon manufacturer, makes passenger and metro rail coaches. 
• It has factories in India and Italy. Its product range also includes electric propulsion equipment like traction motors and vehicle control systems. 
• Rolling stock and parts such as cast bogies, couplers, draft gear, loco shells, and cast manganese steel crossing are available through its Railway Freight division. 
• Its Railway Transport provides propulsion and electrical equipment, passenger rolling stock, and services including global service repair, inspection, and refurbishing in addition to maintenance and help. 

Get more details about Titagarh Wagons Limited (TWL) share price here.

Know the Titagarh Wagons Limited (TWL) Share Price History here.

Jupiter Wagons Ltd

• Jupiter Waggons Limited is India's largest railway engineering firm, producing freight waggons and passenger coaches.
• It has a railway rolling stock production plant, where an alloy steel foundry is equipped to provide critical casting components for manufacturing waggons.
• It provides high-tensile centre buffer couplers, alloy steel cast bogies, and high-capacity draft gear as wagon accessories. 
• For the Indian and North American railroads, the company also produces draft gears, couplers, and railway turnouts.

Get more details about Jupiter Wagons Ltd  share price here.

Know the Jupiter Wagons Ltd  Share Price History here.

Features of Indian Railways Shares

Check out the features of Indian Railways share below. 

Vital Role in Transportation Infrastructure and Economic Development

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

Facilitating Mobility Needs

The sector plays a significant role in facilitating the movement of people and goods, meeting India's transportation needs effectively.

World's Largest Passenger Carrier

As the world's largest passenger carrier, Indian railways transport millions of passengers daily, fulfilling the needs of India's large population.

Contribution to Goods Transportation

Indian railways transport goods, facilitating the movement of essential commodities and industrial goods. It offers services such as catering, tourism, parcel delivery, and various train types.

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 and passenger comfort.

Extensive Network Coverage

The extensive railway network spans across major cities, towns, and even remote rural areas. This extensive coverage facilitates economic activities, promotes tourism, and fosters social connectivity.

Modernization Initiatives

Modernization initiatives in the Indian railway sector aim to enhance operational efficiency, safety standards, and service quality. They follow best global 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. These include investing in individual railway stocks, mutual funds focused on railway stocks, or exchange-traded funds (ETFs) tracking the railway industry. You can purchase 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. You may also start systematic investment plans (SIPs) in railway-focused mutual funds. 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 by increasing the budget allocation for railways in the Interim Budget. This fosters 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, 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.
• Invest for 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. This is because 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.

Conclusion
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. You can avail of new-age trading facilities with the BlinkX share market app. Remember, staying updated on recent developments and consulting financial advisors is essential for informed investment decisions in the best railway stocks in India.