List of 10 Best Railway Stocks in India to Buy (2024)

Last Updated on Nov 8, 2024 by KraftPixel

For many decades, the Indian railway industry has been the backbone of the country’s transportation system. So much so is the impact of the railways on the economy that in the recent Interim Budget 2024-2025, an allocation of Rs 2.55 lakh cr. to the Indian Railways, showcasing a 5.8% increase from the previous year’s estimate. The highly anticipated railway sector stocks received a significant boost from the news as many railway stocks saw the most significant gains, posting double-digit growth within a single month. In this blog, we will explore the best railway stocks in India, along with all listed railway stocks, the advantages of investing in them, risks, how to invest, and more.

Railway Stocks List With Price

Here is a railway shares list with the stock prices of the railway companies in India:

Note: The list of railway stocks in NSE is derived from the Tickertape Stock Screener. The data on this railway sector stocks list represents the railway stocks price as of 3rd October 2024.

Best Railway Stocks in India – Updated October 2024

Note: The data on this railway sector share list is from 3rd October 2024. The list of best railway stocks in India is derived from the Tickertape Stock Screener using the following criteria – 

• 1Y return – Med to high
• Fundamental Score – Sorted from high to low

Fundamental Score: The score is a smallcase proprietary score between 1 and 10 assigned to stocks listed on the NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated by considering factors like valuation, profitability, market share growth, financial health, and earnings growth of the company.

🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.

🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.

Did You Know You Can Invest in Railway Stocks with smallcase?

Discover the convenience of investing in stocks through ready-made portfolios curated by SEBI-registered experts.

Before diving in, let’s understand what smallcase is.

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s the top railway smallcases you can check out:

Omni Bullet Train-Great Indian Railways smallcase by Omniscience Capital

Omni Future of Mobility smallcase by Omniscience Capital

Disclosure for the mentioned smallcases

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Overview of Best Railway Stocks in India

Here are brief overviews of the companies on our Indian railway shares list above:

Jupiter Wagons Ltd

Jupiter Wagons Ltd, established in 1979, is a prominent player in the rail sector, primarily focusing on the manufacturing of railway wagons, coaches, and various components. The company significantly contributes to the Indian railways’ infrastructure, providing advanced engineering solutions and products.

As of the latest data, Jupiter Wagons Ltd has a market capitalisation of Rs. 21,834.06 cr., and a close price of Rs. 497.15. The stock has a PE ratio of 65.85 and has delivered a 1-year return of 58.38%. The company’s fundamental score is 6.99.

Indian Railway Catering and Tourism Corporation Ltd

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) was incorporated in 1999. The company is a central public sector enterprise under the Ministry of Railways, responsible for catering, tourism, and online ticketing operations of Indian Railways.

IRCTC’s market capitalisation stands at Rs. 74,492 cr., with a close price of Rs. 886.40. The stock has a PE ratio of 67.04 and has returned 25.99% over the past year. The fundamental score for IRCTC is 6.30.

Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL) was established in 2003 as a public sector enterprise under the Ministry of Railways. The company is engaged in the development and implementation of railway infrastructure projects.

RVNL’s market capitalisation is Rs. 1,09,401 cr., with a close price of Rs. 509.50. The stock has a PE ratio of 69.49 and has recorded a remarkable 1-year return of 195.36%. The fundamental score for RVNL is 5.71.

BEML Ltd

BEML Ltd, formerly known as Bharat Earth Movers Limited, was founded in 1964. The company operates in the rail and metro sectors, manufacturing various products, including rail coaches, metro cars, and defence equipment.

BEML Ltd has a market capitalisation of Rs. 15,322.92 cr. and a close price of Rs. 3,654.70. The PE ratio for BEML Ltd is 54.37, and the stock has provided a 1-year return of 58.16%. Its fundamental score is 4.92.

Texmaco Rail & Engineering Ltd

Texmaco Rail & Engineering Ltd, founded in 1939, is a leading player in the rail engineering sector. The company manufactures a wide range of railway products, including wagons, coaches, and bridges, serving both domestic and international markets.

Texmaco Rail & Engineering Ltd has a market capitalisation of Rs. 8,409.99 cr., and a close price of Rs. 203.27. The stock has a PE ratio of 74.29 and has achieved a 1-year return of 60.75%. The fundamental score for Texmaco Rail & Engineering Ltd is 4.83.

Indian Railway Finance Corp Ltd

Indian Railway Finance Corp Ltd (IRFC) was incorporated in 1986 as the dedicated financing arm of the Indian Railways. The company specialises in financing the acquisition of rolling stock assets and project assets for the Indian Railways.

IRFC has a substantial market capitalisation of Rs. 2,37,114.97 cr., with an Indian railway stock price of Rs. 181.05. The stock’s PE ratio is 36.98, and it has achieved a 1-year return of 97.91%. The fundamental score for IRFC stands at 4.52.

Ramkrishna Forgings Ltd

Founded in 1981, Ramkrishna Forgings Ltd specialises in the manufacturing of forgings for various sectors, including railways. Among the Indian railways shares, this company is a key supplier of components to the rail industry, offering high-quality forged products.

Ramkrishna Forgings Ltd has a market capitalisation of Rs.18,278.20 cr., and a close price of Rs. 984.65. The PE ratio is 53.53, and the company has delivered a 1-year return of 53.61%. The fundamental score of the stock is 4.30.

Titagarh Rail Systems Ltd

Founded in 1997, Titagarh Rail Systems Ltd is a leading manufacturer of rail coaches, wagons, and propulsion systems in India. The company caters to both domestic and international markets, offering a range of products for the railways.

Titagarh Rail Systems Ltd has a market capitalisation of Rs. 16,035.04 cr., and a close price of Rs. 1,133.70. The PE ratio is 56.04, and the company has achieved a 1-year return of 47.24%. Its fundamental score is 4.21.

About the Indian Railway Sector 

With over 1.4 mn employees, the Indian railway industry is the major contributor to the nation’s economy. It is the fourth largest railroad network in the world and spans thousands of kilometres, covering far-fledged regions nationwide. 

Scope of the Indian Railway Industry in 2024

The Interim Budget 2024-25 has allocated Rs 2.55 lakh cr. to the Indian Railways, showcasing a 5.8% increase from the previous year’s estimate. Finance Minister Nirmala Sitharaman, in her commitment to enhancing the country’s rail infrastructure, announced the launch of three major economic railway corridor programs. These initiatives, designed to streamline energy, mineral, and cement logistics, improve port connectivity, and upgrade high-traffic density corridors, are pivotal under the PM Gati Shakti plan for multi-modal connectivity. This strategic move aims to boost logistics efficiency and reduce operational costs across the board.

Further, the budget will facilitate the acquisition of modern Vande Bharat trains, expansion and doubling of rail tracks, and the nationwide implementation of the Kavach safety system. An ambitious upgrade will see 40,000 rail bogies enhanced to Vande Bharat standards, prioritising passenger safety and comfort. Reflecting on fiscal prudence and strategic investment, the railways reported a historic high in capital expenditure, underscoring a robust growth trajectory aligned with the National Rail Plan 2030. This plan envisions a substantial increase in freight capacity, setting a dynamic course for the future of Indian Railways.

Advantages of Investing in Railway Stocks

Here are some reasons why investing in railway stocks may be a lucrative opportunity – 

1. Government support: The Indian government’s commitment to improving the country’s transportation infrastructure is evident from the increased allocation of funds for the railways in the Interim Budget. This provides a stable foundation for railway stocks and gives investors confidence in the sector’s growth potential.
2. Diverse projects: The new projects for FY 2024-25 include three major economic railway corridor programs. These initiatives, designed to streamline energy, mineral, and cement logistics, improve port connectivity, and upgrade high-traffic density corridors, are pivotal under the PM Gati Shakti plan for multi-modal connectivity.
3. Passenger expectations: With increased passenger expectations, the railways plans to refurbish 40,000 rail bogies similar to Vande Bharat standards, prioritising passenger safety and comfort. The upgraded interiors with a modern look will enhance passenger comfort and satisfaction, which could translate into higher demand for railway services.
4. Long-term investment option: Railway stocks, including railway PSU stocks, are typically viewed as long-term investments, as the infrastructure required for the railway system takes time to build and maintain. It allows investors to invest in a sector that is likely to grow steadily over the long term.

Risks of Investing in Indian Railway Sector Stocks

Investing in Indian railway stocks, including both blue-chip and penny stocks, comes with its fair share of risks that investors must carefully consider. Here are some key risks to be aware of when exploring the railway stock market in India:

• Economic downturns impact on demand: The demand for railway services is closely tied to the overall economic conditions. During economic downturns, reduced business and consumer spending can lead to a decline in passenger and freight traffic, negatively impacting the revenue and profitability of railway stocks.
• Policy and regulatory shifts: The railway sector is heavily influenced by government policies and regulations. Changes in policies, such as fare structures, subsidies, or infrastructure development plans, can significantly affect the financial performance of railway stocks.
• Emerging competition from road and air transport: While the Indian Railways maintains advantages in terms of capacity and cost-effectiveness, the sector faces growing competition from alternative modes of transportation like roads and air travel. This can put pressure on railway stocks’ market share and pricing power.
• High debt levels in some companies: Certain Indian railway shares, especially those involved in infrastructure projects, can carry high debt levels. This can expose them to interest rate risks and debt servicing challenges, potentially impacting their stock performance.
• Cyclical nature of the industry: The railway industry tends to be cyclical, with periods of growth and decline. Investors must consider these industry trends and align their investment decisions with risk tolerance and long-term goals.
• Volatility in railway penny stocks: While railway penny stocks may offer the potential for higher returns, they also carry greater volatility and risk. These low-priced shares can be susceptible to market fluctuations, making them a riskier investment option than established railway stocks.

To navigate the risks in the Indian railway stock market, investors should conduct thorough research and consider factors like government policies and financial health before making investment decisions. Investors seeking a safer, long-term investment approach might consider focusing on railway PSU share prices.

How to Identify the Best Railway Stocks in India?

Identifying the top railway stocks in India requires a strategic approach that balances analysis, market awareness, and thoughtful diversification. Here’s how you can proceed:

Explore the Indian Railway Stocks List

You may begin by reviewing the complete Indian railway stocks list, including both well-established companies and Indian railways subsidiaries. You might want to use resources that provide the Indian railway stocks list with prices to identify potential investment opportunities across different segments of the railway sector. This includes checking the railway share price list to get a clear view of all railway stocks prices.

Assess Financial Performance

You can analyse the financial health of all railway stocks on your list by examining revenue growth, profit margins, debt levels, and return on equity (ROE). Then, you can shortlist and focus on Indian railways stocks with strong fundamentals that indicate financial stability and growth potential. Also, you can look into the performance of railway sector stocks, including those involved in railway coach manufacturing listed companies in India.

Monitor Share Price Movements

You can track the historical share price trends of railway stocks in India to gauge their performance in different market conditions. Tools like a railway stocks screener can help you compare stock performances and identify those with consistent returns. It is worthwhile to pay special attention to the railway stocks’ share price to make informed decisions.

Diversify Within the Railway Sector

Diversification is key to managing risk. You can consider investing in a mix of railway sector stocks, including railway related stocks such as those in coach manufacturing, infrastructure development, and operations. This approach helps spread risk while capitalising on different growth areas within the sector. It can be helpful to review the railway stock list to explore different options.

Consider Penny Stocks for High-Growth Potential

You can look into railway penny stocks for potential high returns. Although riskier, these rail shares can offer significant upside if selected carefully. Use a railway penny stocks list with prices to identify promising low-cost stocks. Checking the railway penny stocks list 2024 can be a good starting point for identifying potential investments in this category.

Stay Informed on Industry Trends

You can keep up with the latest developments in the railway sector, including government policies, infrastructure projects, and technological advancements. These factors can have a significant impact on railway stocks in India, influencing both risks and opportunities.

Consult Financial Experts

It is worthwhile to take advice from financial advisors who specialise in railway sector stock investments. Their expertise can guide you in selecting the best railway stocks in India that align with your risk tolerance and financial goals. 

How to Invest in the Top Railway Stocks in India?

Investing in the Indian railway sector presents a unique set of challenges and opportunities for investors. To navigate this market effectively, it’s essential to combine research and education with a solid understanding of financial analysis, market trends, diversification strategies, and the use of investment tools.

• Research and education: Before investing in Indian railway stocks, it’s crucial to conduct thorough research on the companies, industry trends, and market dynamics. This includes analysing financial reports, tracking records, growth prospects, and competitive positioning of railway companies to make informed investment decisions. Staying up-to-date with the rail stock news, trends, and regulatory changes is also vital for investors.
• Financial analysis: A deep understanding of financial analysis is essential for evaluating the performance of railway related stocks, including railway stocks under 100. This includes analysing key metrics such as revenue growth, profit margins, return on equity (ROE), and debt-to-equity ratios to assess a company’s financial health and stability. By conducting thorough financial analysis, investors can identify undervalued or overvalued stocks and make informed investment decisions.
• Market trends: Staying informed about market trends and sentiment is critical for investors in the Indian railway sector. This includes tracking market indices, sector performance, and regulatory changes that may impact railway stocks. By staying attuned to market trends, investors can adjust their investment strategies to capitalise on opportunities and mitigate risks.
• Diversification: Diversifying your investment portfolio across a range of railway stocks can help spread risk and capture opportunities in different segments of the railway sector. By diversifying, you can balance potential returns and risks associated with individual train companies. This includes investing in a mix of blue-chip and penny stocks, as well as exploring different railway sectors such as passenger and freight services.
• Use of Investment Tools: Tickertape Stock Screener features over 200+ filters, allowing investors to narrow down their search effectively across various parameters like financial ratios, company fundamentals, and stock performance metrics. Additionally, it offers the capability to create custom filters, allowing users to tailor their screening criteria to fit specific investment strategies or needs. Filter your favourite railway stocks now! 

Things to Keep in Mind Before Investing in Railway Shares

In addition to the above, investors should also consider the following:

• Risk Management: Implementing risk management strategies such as setting stop-loss orders, diversifying your portfolio, and monitoring market trends to protect your investments and optimise returns.
• Long-Term Perspective: Investing in the Indian railway sector requires a long-term perspective to ride out market fluctuations and benefit from the sector’s growth potential.
• Regulatory Environment: Staying informed about regulatory changes and their potential impact on railway stocks is essential for investors.
• Industry Developments: Keeping up-to-date with industry developments, such as infrastructure projects and government initiatives, can help investors identify opportunities and potential risks.

By combining research and education with a solid understanding of financial analysis, market trends, diversification strategies, and the use of investment tools, investors can navigate the Indian railway sector with confidence and potentially achieve their investment goals.

Who Can Invest in the Railway Stocks in India?

• Anyone with a Demat account can invest in railway stocks, including salaried individuals, self-employed professionals, and retirees.
• Institutional investors like banks, mutual funds, pension funds, and insurance companies often invest in railway stocks as part of a diversified portfolio.
• Foreign Institutional Investors (FIIs) can invest in Indian railway stocks, subject to SEBI regulations.
• High Net-Worth Individuals (HNIs) may invest in railway stocks for potentially high returns, leveraging their ability to take on more risk.
• Retirement and pension fund managers invest in railway stocks to secure long-term, stable beneficiary returns.
• Day traders and short-term investors might invest in railway stocks to capitalise on market fluctuations.
• Investors in thematic or sectoral mutual funds focused on infrastructure or transportation can gain exposure to railway stocks.

Conclusion

Introducing new projects, refurbishing premier coaches, and increasing the allocation of funds for track renewal in the Union Budget presents a compelling opportunity for investors looking to diversify their portfolios and benefit from the growth potential of the railway sector. Additionally, the government’s commitment to improving the country’s transportation infrastructure provides a stable foundation for railway stocks, making them a promising investment opportunity.

Frequently Asked Questions About Railway Stocks

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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.

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