Best Railway Stocks in India
The highly anticipated railway sector stocks received significant boost during Budget 2024-25 as many railway stocks recorded exceptional gains, posting double-digit growth in the year. Here’s the list of top-performing railway stocks in India.
Best Railway Stocks in India
Railway Stocks
List of railway stocks listed in NSE.
last updated at 9:45 PM IST
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Showing 1 - 6 of 6 results
last updated at 9:45 PM IST
| NameStocks (6)↓ | ↓Sub-SectorSub-Sector↓ | ↓Market CapMarket Cap↓ | ↓Close PriceClose Price↓ | ↓PE RatioPE Ratio↓ | ↓1Y Return1Y Return↓ | ||
|---|---|---|---|---|---|---|---|
| 1. | Ramkrishna Forgings LtdRKFORGE | RailRail | 13,403.5113,403.51 | 740.40740.40 | 39.2639.26 | 7.267.26 | |
| 2. | Jupiter Wagons LtdJWL | RailRail | 15,343.4815,343.48 | 361.45361.45 | 46.2846.28 | -4.28-4.28 | |
| 3. | BEML LtdBEML | RailRail | 12,446.2912,446.29 | 2,988.702,988.70 | 44.1644.16 | -13.74-13.74 | |
| 4. | Titagarh Rail Systems LtdTITAGARH | RailRail | 9,916.709,916.70 | 736.35736.35 | 34.6634.66 | -22.08-22.08 | |
| 5. | Texmaco Rail & Engineering LtdTEXRAIL | RailRail | 5,177.505,177.50 | 129.61129.61 | 45.7345.73 | -23.31-23.31 | |
| 6. | Oriental Rail Infrastructure LtdORIRAIL | RailRail | 1,010.671,010.67 | 156.55156.55 | 33.6733.67 | -38.27-38.27 |
Update: Union Budget FY 2025-26 on Railway Sector
The total budget allocation for Indian Railways in FY 2025-2026 is ₹2.52 lakh cr., unchanged from the previous year’s allocation.
Rail accidents: Down to 40 in 2023-24 from 473 in 2000-01.
Kavach system: Installed on 1,465 route km for automatic train protection.
Station redevelopment: 1,337 stations under the Amrit Bharat scheme.
The Railways remains heavily dependent on government support, with ambitious targets for freight expansion, infrastructure modernisation, and sustainability efforts.
Budget Overview
- Revenue: Estimated at ₹3,02,100 cr. (8.3% increase from 2024-25 RE).
- Traffic Revenue: ₹3,01,400 cr. from operations, with 62% from freight (₹1,88,000 cr.) and 31% from passenger services (₹92,800 cr.).
- Expenditure:
- Operating Ratio: 98.43%, indicating tight financial performance.
Revenue expenditure: ₹2,99,059 cr. (7.7% increase).
Capital expenditure: ₹2,65,200 cr. (same as 2024-25).
Budgetary support from the central government: ₹2,52,200 cr. (95% of capital expenditure).
Freight and Passenger Performance
- Freight growth: Estimated to reach 1,700 mn tonnes in 2025-26 (4.1% annual growth).
- Key freight commodities: Coal (51%), iron ore (11%), cement (9%).
- Rail share in freight transport: Target to increase from 26% (2021-22) to 45% by 2030.
- Passenger growth: 9% increase in traffic; AC classes growing faster than non-AC.
Challenges and Reforms
- Revenue deficit: Limited surplus impacts maintenance and investment.
- Freight competitiveness: Rail loses to roads due to high tariffs, first/last-mile connectivity issues.
- Private investment: Railways is promoting private wagons and container traffic.
- Electrification & Sustainability: 97% of broad-gauge routes electrified; renewable energy projects lagging.
Safety and Infrastructure Development
The Railways remains heavily dependent on government support, with ambitious targets for freight expansion, infrastructure modernisation, and sustainability efforts.
Overview of Best Railway Stocks in India
Jupiter Wagons Ltd
Jupiter Wagons Ltd, established in 1979, is a prominent player in the railway industry stocks, primarily focusing on the manufacturing of railway wagons, coaches, and various components. The company is a significant contributor to the Indian Railways' infrastructure, providing advanced engineering solutions and products.
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 stocks, playing a crucial role in expanding and modernising India's rail network.
V2 BEML Ltd
BEML Ltd, formerly known as Bharat Earth Movers Limited, was founded in 1964. The company operates in the railway and metro sectors, manufacturing a wide range of products, including rail coaches, metro cars, and defence equipment. It is a notable player in the railway stock market.
Texmaco Rail & Engineering Ltd
Texmaco Rail & Engineering Ltd, founded in 1939, is a leading player in the railway sector stocks. The company manufactures a wide range of railway products, including wagons, coaches, and bridges, serving both domestic and international markets.
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, contributing significantly to the railway stock’s performance.
Advantages of Investing in Railway Stocks
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.
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.
Passenger Expectations
With increased passenger expectations, the railways plan 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.
Long-Term Investment Option
Railway stocks, including PSU railway stocks, are typically viewed as long-term investments, as the infrastructure required for the railway system takes time to build and maintain. Investors often consider these stocks for stable returns, contributing to railway stock analysis over time.
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Factors to Consider When Investing in Railway Stocks in India
Government Policies and Regulations
The railway sector, including the top railway shares, is heavily regulated by the government. Changes in policies, subsidies, or infrastructure plans can significantly impact the financial performance of Indian railway shares.
Economic Growth Correlation
The demand for railway services is closely tied to the country's economic health. During economic downturns, reduced spending can lead to decreased passenger and freight traffic, affecting revenues and impacting the railway stock forecast.
Competition from Other Transport Modes
Railways face increasing competition from road and air transport. This competition can pressure market share and pricing, influencing the profitability and railway stock performance of various companies.
Infrastructure Development Initiatives
The government’s focus on infrastructure development, such as high-speed rail corridors and electrification projects, can enhance the efficiency and reach of railways, potentially boosting the value of railway blue-chip stocks.
Technological Advancements
Modernisation efforts, including adopting new technologies and improving operational efficiency, can positively impact railway stocks. Keeping up with these advancements is essential for investors monitoring railway stock trends.
Public-Private Partnerships (PPPs) and Privatisation
The government's push for private sector participation in railways through PPP models can impact stock performance. Increased privatisation may improve efficiency, while policy shifts can influence railway sector investments in India.
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Frequently Asked Questions on Railway Stocks
1. Which is the best railway stock in 2025?
Based on Return on Equity, Indian Railway Catering and Tourism Corporation Ltd and Jupiter Wagons Ltd generated double-digit returns, outperforming other railway shares in India.2. How do railway stocks perform compared to other sectors in India?
Railway stocks often perform differently compared to other sectors due to their heavy reliance on government policies and infrastructure spending. Railway stocks offer stability and steady growth potential, making them attractive during economic expansion and increased infrastructure investment. Investors often compare railway stocks vs other sectors to assess diversification benefits.3. What factors should one consider when investing in railway stocks in India?
When investing in railway stocks in India, consider factors such as the company’s role in infrastructure development, government partnerships, financial health, and historical performance.4. Are there any railway penny stocks in India?
Railway penny stocks refer to shares of smaller-cap companies within the railway sector that trade at low railway stock prices. While less common due to the capital-intensive nature of the railway industry, investors can find penny stocks in associated sectors such as component manufacturing and small-scale service providers. Investors should approach these cautiously, considering their higher volatility and lower market liquidity.5. What are the railway coach manufacturing listed companies in India?
Listed companies in India involved in railway coach manufacturing include BEML Ltd, Titagarh Rail Systems Ltd, Texmaco Rail & Engineering Ltd, and Jupiter Wagons Ltd.
