Best Railway Stocks in India 2025

Posted by : sachet | Tue Feb 18 2025

Best Railway Stocks in India 2025

In the interim budget announced in 2024, the government increased the budget allocated to Indian railways by 5.8%. Thus, railway stocks in India have become a wise choice for investors to generate high returns and reliable dividend income. The current year is about to end, and double-digit growth in the railway sector has been recorded. Analysts are expecting that this growth will increase in the coming year 2025. For investors expressing their keen interest in this promising industry, now is the time to add railway stocks to their diversified portfolio. 

What are Railway Sector Stocks?

Railway sector stocks represent the shares or equities of companies engaged in operating, financing, and building the railway sector. They offer investors exposure to steady growth and resilience in the stock market. Moreover, different factors such as government initiatives, increasing passengers, and technological innovations derive growth in this promising sector and recognise such stocks. Explore the railway stock list provided below to create a diversified investment portfolio. 

Railway Stock List By Market Capitalisation

Stock NameLTP (in ₹)Market Capitalisation (in cr.)52-Week High (in ₹)52-Week Low (in ₹)
IRFC Ltd.158.172,06,000229.0074.60
Rail Vikas Nigam Ltd.468.4097,660647.00165.60
IRCTC Ltd.833.5066,6801,138.90732.00
Container Corporation of India Ltd.857.6552,2101,180.00757.25
Ircon International Ltd.227.5021,400351.60157.55
Jupiter Wagons Ltd.500.0520,930748.10300.50
BEML Ltd.4,397.1518,3105,488.002,413.05
Titagarh Railsystems Ltd.1,204.3016,2301,896.95780.90
RITES Ltd.304.5514,620412.98235.48
Railtel Corporation of India Ltd.441.6514,190617.80279.05

*Data is updated as of 9th December 2024

Factors to Consider When Investing in Railway Stocks in India

Investing in Indian railway stock is good for appreciating capital. However, it is essential to deal with market volatility and economic downturns. To do so, investors should consider different factors that might impact their investment journey in the Indian stock market.

  • Financial Health: The company’s financial health could be the best way to predict future performance. Evaluate and assess financial health using P&L statements, cash flow, operating profit, balance sheet, etc. Try selecting stocks with effective cash flow statements to integrate technological upgrades in the future. 
  • Government Initiatives: The GOI (Government of India) plays a pivotal role in encompassing growth in the railway sector. Their initiatives include PPP (Public-Private Partnership), electrification, bharatmala, and sagarmala. Monitor such initiatives/steps of the government to assess their impact on the best railway stocks in India. 
  • Regulatory Framework: The Indian railway is owned by the state. However, companies in this sector must comply with the rules and regulations imposed by the legal authorities. Stay informed about dynamic regulations and how companies are complying with them to avoid legal penalties.  
  • Industry Trends: Railway sector stocks are resilient, but this doesn’t mean they cannot be affected by industry trends. Track the parameters like trade volumes, increase in passengers, population growth, and other industrial activities to generate higher returns. 

Railway Stock List With 1-Year Returns

Stock Name1-Year Returns (%)
IRFC Ltd. 92.41
Rail Vikas Nigam Ltd. 162.74
Ircon International Ltd. 39.31
BEML Ltd.79.42
Railtel Corporation of India Ltd50.12
Jupiter Wagons Ltd.58.12

*Data is updated as of 9th December 2024

Dividend Yield in Indian Railway Stocks in 2024

Stock NameDividend Yield (%)
IRFC Ltd. 0.95
IRCTC Ltd.0.96
Ircon International Ltd. 1.36
RITES Ltd. 2.95
Container Corporation of India Ltd.1.37

*Data is updated as of 9th December 2024

Advantages of Investing in Indian Railway Stocks 

Apart from capital appraisal, the best railway stocks in India come with many other benefits. These include. 

  1. Dividend Income

The best railway stocks in India often declare high dividend payouts for investors. The dividend is not part of capital appreciation. It is the kind of regular income that helps investors meet daily expenses. For example, in the past 12 months, RITES Ltd. declared a dividend of ₹14.00 per share. As a result, railway sector stocks have become a popular option for investors.  

  1. Rising Demand

Constantly increasing demand for railway services made this sector a shining star. Investors are benefiting from urbanisation and the growing population in terms of returns. Also, experts predict that demand for these services is projected to continue in the coming years, making railway stocks in India an appropriate choice. 

  1. Steady Growth Potential

Railway sector stocks have higher growth potential and are resilient to the volatility in the Indian stock market. Investing in such stocks could benefit investors and allow them to enjoy higher returns in 2025. The steady growth potential of Indian railway sector stocks has encouraged most investors to invest their invaluable capital. 

  1. Government Support

As stated earlier, the Indian railway comes with state ownership. And immense support from the government could help these stocks act resilient during the economic crisis and volatile market conditions. The government of India provides subsidies for operating and constructing railway projects. It helps businesses reduce the cost of operations, which might improve their profitability and share prices. Invest in the best railway stocks in India to get this benefit on your investment. 

Risks Associated With Railway Stocks in India

High market resilience and steady growth potential are the plus points for investing in the best railway stocks in India. However, it also includes different risks/challenges that should be considered when investing. These include. 

RisksImpact





Regulatory Changes
The legal environment is dynamic for all sectors. And regulation change might impact organisations’ behaviour in complying with them. This might lead to the imposition of higher legal penalties on the railway companies, which would impact their profitability. Select the best railway stocks in India with a robust track record of meeting compliance requirements to eliminate this risk from your investment journey. 





High Debt
Railway companies in India are operating with high debt levels that could be a risk for investors in the coming years. Increasing debt levels might impose the burden of high interest rates on the companies and can impact their profitability in the business environment. Choose the Indian railway stocks with low debt levels and effective cash flow position to manage the interest payment effectively. 
Aggressive CompetitionThe railway sector might be impacted by rapidly increasing competition from air and road transport. Increasing number of affordable options to travel from one place to another will pressure the market share of the railway industry in India. It is essential to stay informed about these options and how they will impact the profitability of companies operating in this promising sector. Select the best railway stocks in India to reduce the impact of increasing competition in your investment journey. 

Note: Choose Univest as your stock advisor to mitigate such risks in your investment journey. Start investing now with five free trades!

To Conclude

The railway network in India is considered one of the largest globally. For most investors, it is a proven opportunity to generate higher returns. The continuous expansion of railway operations in India represents a direction for investors looking to build wealth in the long run. And the best railway stocks in India could be an iceberg to do so. It is essential to conduct research on fundamentally strong shares to deal with any kind of risk or uncertainty. You can also consider Univest as your trusted stock advisory platform for picking Indian railway stocks with high-growth potential. Download now to initiate your journey with five free trades. 

FAQs

1. Which railway stocks in India are listed?

Ans. Here are some Indian railway stocks listed on the NSE (National Stock Exchange).

2. How to invest in railway sector stocks?

Ans. Consider the steps mentioned below to create a diversified investment portfolio with the best railway stocks in India. 

  • Research on high potential stocks or consult your financial advisor to select the best among them. 
  • Get registered with a broker and open your demat account to trade or invest. 
  • Choose the stocks and quantity you wish to buy at a particular point in time. 
  • Place a buy order and execute it to invest in.
  • Track your portfolio and monitor the returns generated to book profit promptly. 

3. Which railway stock pays a high dividend?

Ans. Railway stocks in India often declare high dividend payouts. Some stocks with higher dividend yields include RITES Ltd., IRFC Ltd., IRCTC, and CONCOR Ltd. Conduct your own research when investing in such stocks to generate higher returns and dividend income from the Indian stock market. 

4. Is it good to invest in railway stocks in India?

Ans. Investing in Indian railway stocks might be an opportunity for investors looking to generate higher returns in the long run. As the industry is backed by immense government support and monopoly, the companies engaged in this promising sector are poised to grow rapidly in the coming years. 

icon

100% Safe & Secure Platform.

Univest encrypts all data and transactions to ensure a completely secure experience for our members.

Copyright

2025 Univest. All rights reserved. | Designed with ❤️ in India
About Univest
About: Univest is a cutting-edge stock market platform designed to help traders and investors maximize their returns with expert-driven advisory services and seamless trading execution. Whether you're a seasoned trader or just starting, Univest simplifies your investment journey with actionable trade recommendations, AI-powered portfolio insights, and a fully integrated brokerage experience. With Univest, you gain access to proven stock market advisory, offering expert trade ideas for stocks, futures, options, and commodities. Our one-click trade execution feature eliminates slippage, ensuring instant execution through our advisory-first brokerage. Smart portfolio management allows you to identify underperforming stocks, optimize your investments, and receive real-time alerts. Additionally, Univest provides seamless investment opportunities beyond stocks, including mutual funds, bonds, fixed deposits, and insurance (coming soon). Join over 40 lakh active investors who trust Univest to make informed and profitable trading decisions. Start investing smarter today! 🚀  
Attention Investors : To ensure a smooth trading experience and prevent unauthorized transactions, investors must update their mobile number and email ID with their stockbroker or depository participant. As per regulatory requirements, investors are required to pay a stipulated amount as an upfront margin for trading in the Cash/FO segment. We encourage all investors to regularly check their securities in the Consolidated Account Statement (CAS) issued by depository to verify their holdings.Always verify alerts and transaction details received directly from the exchange or NSDL before proceeding with any trades. Please do not make payments through unverified email links, WhatsApp, or SMS. Always trade through a registered stockbroker and verify all details before making financial decisions.
 
Disclaimer: Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. For more disclaimer /disclosure, visit https://univest.in/stock-broker or Univest App.We collect and use your contact information for legitimate business purposes, including providing updates on our products and services. We do not sell or rent your contact information to third parties. By submitting your details, you authorize us to contact you via Call/SMS, even if you are registered under DND. This authorization remains valid for 12 months.For grievances, please contact us at hello@unibrokers.in .
 
Univest Stock Broking Disclosures
Univest Stock Broking Private Limited - SEBI Reg. No. INZ000317437 (Stock Broker), NSE TM Code: 90392, BSE TM Code: 6866, MCX TM Code: 57290 and ICCL- Self Clearing Member Code: 6866, SEBI Reg. No. IN-DP-779-2024 (Participant), NSDL DP ID: IN304748.
 Risk Disclosures on Derivatives
1. 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
2. On an average, loss makers registered net trading loss close to ₹ 50,000
3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
4. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Attention Investors: As per NSE circular dated July 6, 2022: https://nsearchives.nseindia.com/content/circulars/INSP52900.pdf, BSE circular dated July 6, 2022: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20220706-55, MCX circular dated July 11, 2022: https://www.mcxindia.com/docs/default-source/circulars/english/2022/july/circular-418-2022.pdf?sfvrsn=9401991_0, investors are cautioned to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. 
Investors are further cautioned to avoid practices like:
a. Sharing 
i) trading credentials – login id and passwords including OTPs.
ii) trading strategies,
iii) position details.
b. Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.
c. Writing/ selling options or trading in option strategies based on tips, without basic knowledge and understanding of the product and its risks.
d. Dealing in unsolicited tips through platforms like Whatsapp, Telegram, Instagram, YouTube, Facebook, SMS, calls, etc.
e. Trading / Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.
 Kindly read the Advisory Guidelines For Investors as prescribed by the Exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client’s assets: https://nsearchives.nseindia.com/content/circulars/INSP49434.pdf
Kindly, read the advisory as prescribed by the Exchange with reference to their circular: NSE/ISC/51035 dated January 14, 2022 regarding Updation of mandatory KYC fields by March 31, 2022: https://www.nseindia.com/resources/exchange-communication-circulars# 
Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from NSDL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (Broker, DP), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Univest Stock Broking Private Limited and offering such services, please send us an email at hello@unibrokers.in
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.
Update your email ID and mobile number with your stockbroker/depository participant and receive an OTP directly from the depository on your registered email ID and/or mobile number. Check your securities/mutual funds/bonds in the Consolidated Account Statement (CAS) issued by NSDL every month.
Attention Investors: SEBI has established an Online Dispute Resolution Portal (ODR Portal) for resolving disputes in the Indian Securities Market. This circular streamlines the existing dispute resolution mechanism, offering online conciliation and arbitration, benefiting investors and listed companies https://www.sebi.gov.in/legal/circulars/jul-2023/online-resolution-of-disputes-in-the- indian-securities-market_74794.html. ODR portal for Investors - https://smartodr.in/login.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances.
arrow down