Railway penny stocks in India for 2025 | Railway Penny Stocks List

Railway penny stocks are stocks that are traded at very low prices, typically below ₹100. These stocks often yield multibagger returns to investors due to their low liquidity and high volatility. These two factors are the most important to consider while investing in the best railway penny stocks in India. Scroll down to get the railway penny stocks list to invest seamlessly in 2025.

Railway Penny Stocks by Market Capitalisation

Here is the best railway penny stocks list to consider for Higher returns.

Disclaimer: Please be aware that investing in low priced rstocks or railway penny stocks in India comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your research on the railway penny stocks list to make an informed investment decision on the Railway company penny stocks. 

1. IRFC Ltd.

Founded: 12th December 1986

Headquarters:  New Delhi, India

Market Capitalisation: 1,74,922.00 Cr

The Indian Railway Finance Corporation (IRFC) is an Indian public sector undertaking (PSU) that provides financial funds for the growth and administration of the Indian Railway through financial bonds and loans from banks and financial institutions. IRFC is one of the best stocks among the railway penny stocks list to buy in 2025. 

The government owns a majority Stake in the IRFC, while the Ministry of Railways has administrative control. The company launched its initial public offering in January 2021 and got listed on the National Stock Exchange of India and the Bombay Stock Exchange of indian on 29 January 2021.

2. Rail Vikas Nigam Ltd.

Founded: 24th January 2003

Headquarters: New Delhi

Market Capitalisation: ₹78,3987.00 Cr

Rail Vikas Nigam Ltd (RVNL) was established to implement the National Rail Vikas Yojana (NRVY), a project that led to railway infrastructure in India. The NRVY was introduced by Prime Minister Atal Bihari Vajpayee. Rail Vikas Nigam Ltd. RVNL has been considered as one of the best railway penny stocks in India. Its main objective is to build up the capacity of rail infrastructure and to raise more funds for the vehicle projects.

3. IRCTC Ltd.

Foundation 27th September 1999

Headquarters: New Delhi, India

Market Capitalisation: ₹78,397.00 Cr

India Railway Catering & Tourism Cooperation Ltd. is an Indian Public sector undertaking that provides ticketing, catering, and tourism services for the Indian railways. IRCTC is one of the best railway penny stocks in India. In 2019, it was listed on the National Stock Exchange and the Bombay Stock Exchange with the government holding a 67% ownership stake. A 66 million-user base is registered with the India Railway Catering & Tourism Cooperation Ltd., with an average of 7.31 lakh tickets booked.

4.  Container Corporation of India Ltd

Foundation: 1988 

Headquarters: New Delhi, India

Market Capitalisation: ₹46,714.00 Cr

Container Corporation of India is an Indian public sector undertaking that is involved in activities like the transportation and handling of containers. Container Corporation of India Limited began its business activities in 1989, assuming control of seven inland container depots (ICDs) from Indian Railways. 

By expanding the network to seven ICDs by 1988, the handling capacity increased. Container Corporation of India is one of the best railway penny stocks in India. To maintain the growth of containerisation, it was suggested that a separate organisation should be established.

5. IRCON Ltd.

Foundation: 27th April 1976

Headquarters: New Delhi, India

Market Capitalisation: ₹17,810.00 Cr

IRCON LTD was established in 1976 by the Indian Railways. IRCON was registered as the Indian Railway Construction International Limited as an entity of the Indian Railway Board. It is an engineering and construction corporation specialising in transport infrastructure. IRCON is one of the best railway penny stocks in India, yielding 287.50% returns in the past 5 years. It is primarily responsible for the construction of railway projects in India and across the world. Ircon has completed over 1,650 major projects in India and 900 major projects worldwide.

6.    Jupiter wagons

Founded: 28th July 1979

Headquarters: Kolkata, West Bengal, India

Market Capitalisation: ₹15,566.00 Cr

Jupiter Wagons Limited is an Indian private manufacturing company of railway freight wagons and passenger coaches. Jupiter Wagons manufactured coaches for the Indian railways and other private companies. It is considered one of the best railway penny stocks in India in 2025 to generate exemplary returns because of its solid financial performance.

7. RITES Ltd.

Founded: 26th April 1974

Headquarters: Gurgaon, Haryana, India

Market Capitalisation: ₹13,214.00 Cr

RITES is an Indian public sector undertaking specialised in the field of transport Infrastructure.RITES’ primary work is to provide consultancy services in rail transport management to operate in India and abroad. It is considered by the investors as one of the best railway penny stocks in India for 2025. Moreover, it has executed projects in over 62 countries.

8. Railtel Corporation of India Ltd.

Founded: 2000

Headquarters: New Delhi, India

Market Capitalisation: ₹13,041.00 Cr

Railtel Corporation of India Ltd. is an Indian Navratna public sector undertaking that provides broadband and VPN services. Railtel’s network passes through around 5000 stations across the country, covering the entire commercial sector. Railtel corporation of india limited. Gained investors’ attention towards the best railway penny stocks in India. Its main goal is to create a worldwide network of broadband, telecom, and multimedia services. And modernise Indian railways with technology. 

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What are Railway Penny Stocks?

Railway penny Stocks refer to the low-priced stocks of railway companies, available with high risk and high potential rewards. Investing in low-priced railway stock can multiply wealth quickly, as it could become a multi-bagger in the coming years. The best railway penny stocks in India can also give you some extra benefits. This includes infrastructure growth, portfolio diversification, and government support.

The best railway penny stocks in India in 2025 are IRFC, RVNL, IRCTC, Container Corporation, and RITES. Discovering the railway penny stocks list could take you to new heights in generating returns in the long term.

Benefits of Railway Penny Stocks in India

1. Low investment – High Potential

Railway penny stocks are ideal for investors who want to start with a small amount of money. These are traded below ₹100 and are considered safe investments. Although the prices of the stock are low but these stocks give high growth potential to the investors. If a railway company performs well and gets government support in railway projects, the return can be much higher than expected.

2. Ideal for Investors

Railway penny stocks are considered perfect for beginners who are new to investing; they can’t take higher risks in the initial phase. Since the price of the penny stocks is low, new investors can gain experience, build confidence, and learn how the market works with just a small investment.

3. Government-Supported Sector

Railway penny stocks in India are supported by the government. New projects are launched by the government for the development of railways. This government support directly benefits the small-cap railway penny stocks in India; thus, the stock prices of these gradually increase.

4. Diversification of Portfolio

Railway penny stocks in India offer diversification of the portfolio within the railway sector. By spreading investment in different kinds of railway stocks like manufacturing, infrastructure, and transportation, it reduces the risk of any stock underperforming.

5. Scope for a Big Return

Railway penny stocks in India are at a very low price. If the company performs well or completes the government-launched projects. The stock price of the company gradually multiplied, delivering double or triple returns.

Factors Affecting Railway Penny Stocks in India

Explore the factors that may affect the best railway penny stocks list in the coming decades.

• Government Budget & Policy

The government heavily supports the railway sector in India, as most of the infrastructure projects are planned and funded through the Union Budget. Companies in this sector often receive direct benefits. Thus, the prices of the best railway penny stocks in India surge due to high demand, driven by their small size and low market capitalisation.

• Financial Performance

To track the financial performance of the company and track the past performance of the company to improve its financial performance in the coming years. The prices of low-priced railway shares are impacted by the performance of the company.

• Technology Advances

Upgradation of new technology in the railway penny stocks in India trend leads to an increase in the prices of stocks. Because of the new or modern technology advancements, like the enhancement of safety, high-speed trains, this attracts more passengers.

• Increased Competition

A rise in the competition in railway penny stocks in India affects the low-priced railway company stocks. Increased competition from several other modes of transportation, like roadway or airways, surges the demand for the railway penny. 

• Market Conditions

Market conditions are highly uncertain due to their dynamic nature. Internal or external factors significantly affect the market downturns. This means that the best railway penny stocks in India are highly affected due to such factors.

Railway Penny Stocks List Based on 5-Year Returns

Explore the best railway penny stocks list based on 5-Year returns.

Best Railway Penny Stocks List with P/E Ratio

Explore the railway penny stocks list with their P/E ratio.

Best Railway Penny Stocks List with Dividend Yields

Here is the best Railway Penny Stocks List with Dividend Yields

How to Pick Best Railway Penny Stocks in India?

Here is how to pick from the best railway penny stocks list. Explore the step-by-step guide.

1. Revenue Growth

Railway penny stocks are available at low-priced stocks. Likewise, the best railway penny stocks in India also come with consistent revenue growth over time. If companies revenue growth is increasing, that company has the potential to grow in the future.

2. Government Support

Select from the best railway penny stocks in India backed by government support. Because government support directly influences the company’s stock performance. If the government launches a new project for low-priced railway company stocks.

3. Tech-Driven Solutions:

Companies are heavily investing in modern technology, and automation has long-term growth potential. Investing in small-cap railway penny stocks with high growth potential and low prices that attract long-term investors.

4. Dividend payouts:

Check whether the chosen railway penny stocks pay dividends or not. Investing in high-paying railway penny stocks in India could be a milestone for investors to beat inflation. They can provide a portion of profitability in the form of a dividend to their investors.

Risks in Railway Penny Stocks List: Know How to Mitigate Them

Railway penny stocks often deliver substantial growth, but also come with some of the associated risks. Here are the major risks associated with the best railway penny stocks list that are important for investors to know:

1. Overreliant on government projects:

Railway Penny Stocks are mostly dependent on the government. If there are some changes in the government policy or budget, it shows an effect on the performance of the stock.

Mitigation Strategy:

Choose the popular stocks from the Best railway penny stocks list, and avoid such risks. It is important to invest in such companies that handle both government as well as private clients.

2. Demand volatility 

Railway penny stocks mostly fluctuate because many people travel and goods are shipped can cause the railway companies to earn more or less money at different times. These make the revenue or growth of railway companies go up and down. 

Mitigation Strategy:

Check the demand volatility while exploring the Best railway penny stocks list. And invest in the railway penny stocks; it leads to rapid profits and losses in the price of shares. 

3. Economic Downward

When the economy slows down, while businesses and people are spending less, it means people travel by train and companies shipping the less goods by rail. Fortunately, it effect on the railway penny stocks.

Mitigation Strategy:

They improve the operation and customer service to make the business more efficient and reliable. Railway companies take these steps to earn money from different sources, like offering parcel delivery services, tourism services, or storage facilities.

Also Read : Chemical Penny Stocks in India for 2025 | Invest to Gain More

Who Should Invest in Railway Penny Stocks?

Here is the list of investors who should pick from the best Railway penny stocks list

1. Experienced investors

If you want to invest in railway penny stocks in the stock market, you must have experience and understand the market trends, and also take high risks on the investments. Explore the latest Railway penny stocks to achieve a higher return on the share. 

2. Risk-tolerant individuals

Investors with moderate/high-risk tolerance can pick from the best railway penny stocks list. It prefers investors who are comfortable with volatility and losses in the stock market.

3. Long-term investors 

If you want to invest in the Indian stock market but do not have much capital to generate sustainable returns? Relax, the best Railway penny stocks can help you invest a small amount of capital to generate a good return with long-term growth potential in infrastructure and transportation. 

4. Profit seekers

Investors seeking profit opportunities can analyse railway penny stocks to generate a good return. By investing the ₹10 they earn, the ₹20 railway penny stocks in India help them increase their overall wealth with a small capital amount.

Other Railway Penny Stocks List  

How to Invest in Railway Penny Stocks in India?

Here is the step-by-step guide for investing in the best railway penny stocks in 2025. 

• Step 1: Research the best railway penny stocks or the top railway penny stocks list with their financial and fundamental parameters. 
• Step 2: Select the top government-backed railway penny stocks to diversify your investment portfolio. 
• Step 3: Open a demat account on Univest, navigate to the search section, and look for the selected stocks. 
• Step 4: Place a buy order for the best railway penny stocks and execute it to invest successfully. 
• Step 5: Track your returns in the portfolio section and wait for the right time to book returns.

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Why Invest in Railway Penny Stocks? 

Investing in railway penny stocks can be a viable option for individuals seeking to start with a modest amount of capital and aiming for high returns. These stocks usually cost less than ₹100, so you can buy more shares even with a small budget. Many of these companies are affiliated with Indian Railways, which is experiencing rapid growth with strong government support. 

As railways expand and undertake new projects, these small companies may also grow, and their stock prices can increase. Some of these stocks are also undervalued, meaning they are trading at a price lower than their intrinsic value. This gives savvy investors a chance to buy early and earn profits later. However, since penny stocks can also be risky, it’s essential to conduct thorough research and invest carefully.

Investing in Railway penny stocks in India could be beneficial in the long term because of their dominant industry exposure. Companies involved in the railway sector in India are witnessing rapid growth in track length, high-speed rail, and electrification demand in India. Furthermore, railway penny stocks in India are also targeted by FIIs as they could evolve into high-growth penny stocks that deliver substantial returns to early investors. 

Let’s Wrap

Railway penny stocks can offer investors great opportunities for low-cost entries with high growth potential. With the Indian Railways expanding rapidly and receiving strong government support, many small companies in this sector could benefit. However, these stocks also come with risks, such as high volatility and low transparency. That’s why it’s important to do your research, invest only what you can afford to lose, and diversify your portfolio. If approached wisely, railway penny stocks can be a valuable part of a long-term investment strategy.

Have a look at the top railway penny stocks to get good returns on your capital investment!

FAQs on Railway Penny Stocks

What are the top Railway penny stocks?

Ans. Explore the best Railway penny stocks list now!

Which stock is best in the Railway sector?

Ans. Explore the best Railway penny stocks in India with 5-year returns. 

Which Railway penny stocks could boom in 2025?

Ans. The best Railway penny stocks in India, which could boom in 2025, include Rail Vikas Nigam, IRFC, IRCTC, Jupiter Wagons, and Railtel Corporation.

Should I invest in railway stocks in India?

Ans. Investing in railway stocks, especially for long-term investors who believe in India’s infrastructure growth. The Indian government is investing in railways through projects like station upgrades, electrification, high-speed trains, and freight corridors. This support creates strong growth potential for companies involved in railway construction, finance, catering, and equipment supply. Stocks like IRCTC, IRFC, RVNL, and RITES are backed by the government, offering some stability. However, like any sector, railway stocks also carry risks. Economic downturn, project delays, or changes in government policy can affect profits. Smaller railway penny stocks can be volatile and may not suit all investors. If you’re comfortable with some risk and plan to hold your investments for the long term, railway stocks can be a valuable part of your portfolio.

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Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.