Railway Stocks in India to Invest In
Posted by : sachet | Fri Feb 14 2025
A close look at the most extensive network across the world, the Indian Railway, uncovers potential investment opportunities. Over the past few decades, railway stocks in India have been some of the best-performing investment options. The railway has connected remote villages to big cities and helped people travel from one place to another affordably.
Best Railway Stock List by Market Capitalisation
| Stock Name | LTP (in ₹) | Market Capitalisation (in cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
| IRFC Ltd. | 158.17 | 2,06,000 | 229.00 | 74.60 |
| Rail Vikas Nigam Ltd. | 468.40 | 97,660 | 647.00 | 165.60 |
| IRCTC Ltd. | 833.50 | 66,680 | 1,138.90 | 732.00 |
| Container Corporation of India Ltd. | 857.65 | 52,210 | 1,180.00 | 757.25 |
| Ircon International Ltd. | 227.50 | 21,400 | 351.60 | 157.55 |
| BEML Ltd. | 4,397.15 | 18,310 | 5,488.00 | 2,413.05 |
| RITES Ltd. | 304.55 | 14,620 | 412.98 | 235.48 |
| Railtel Corporation of India Ltd. | 441.65 | 14,190 | 617.80 | 279.05 |
*Data is updated as of 9th December 2024
Railway Sector in India: An Overview
The well-developed railway network of India plays a pivotal role in the transportation of goods and passengers. It is currently considered the most affordable option. Several factors are driving growth in this promising sector, including the introduction of high-speed/luxury trains like Vande Bharat and 100% electrification. In the interim budget announced in 2024, the government increased allocation by 5.8% compared to the previous year. Around ₹2,62,000 crores will be allocated to developing rail infrastructure and networks.
Urbanisation and population growth will foster demand for rail services. This would be a compelling opportunity for companies operating in this promising sector to grow. Thus, investing in the best railway stocks in India could help you generate higher returns and more dividend income. To invest potentially, you should conduct research on the fundamentally strong shares with steady growth options. Be on this piece of research to have an overview of some of the best railway sector stocks to buy.
Overview of Railway Stocks
- IRFC Ltd.
Founded: 1986
Headquarters: New Delhi
Market Capitalisation: ₹2,06,000 crores
IRFC (Indian Railway Finance Corporation) is dedicated to mobilising funds from domestic and international markets to meet the financial needs of railway operations and development in India. Since its IPO (Initial Public Offering) launched in January 2021, it has been one of the best railway stocks in India. The company is raising finance from bonds, banks, and other financial institutions. The GOI (Government of India) owned this undertaking and administered it under the Ministry of Railways.
- Rail Vikas Nigam Ltd.
Founded: 2003
Headquarters: New Delhi
Market Capitalisation: ₹97,660 crores
Rail Vikas Nigam Ltd., or RVNL, operates with infrastructure projects to develop the Indian railway network across the country. DPE (Department of Public Enterprises) has recognised the company as excellent for 11 consecutive years. GOI owns this Navratna PSU and operates it under the administration of the Ministry of Railways. Investors seeking fundamentally strong railway sector stocks in India can prioritise this as it comes with analyst ratings of 85% to buy. The company announced its IPO in March 2019 and received around 1.78 times the subscription amount.
- IRCTC Ltd.
Founded: 1999
Headquarters: New Delhi
Market Capitalisation: ₹66,680 crores
IRCTC Ltd., also known as Indian Railway Catering and Tourism Corporation Ltd., offers various services, such as ticketing, tourism, catering, hospitality, and more. With over 66 million registered users, IRCTC provides its customers with a seamless journey. GOI holds a 63% stake in this prestigious organisation and considers it the Miniratna. The low debt levels and effective cash flow position of this one of the best railway stocks in India made it popular among investors.
- Container Corporation of India Ltd.
Founded: 1988
Headquarters: New Delhi
Market Capitalisation: ₹52,210 crores
Container Corporation of India Ltd. (CONCOR) operates as a terminal operator, warehouse operator, and cargo carrier in the railway sector. Recently, CNN-New 18 acclaimed that CONCOR will enter into container shipping operations and target South Asia and the Middle East to excel. It owns several subsidiaries like CONCOR Air Ltd., and Punjab Logistics Infrastructure Ltd. CONCOR is undergoing privatisation as GOI is selling 30.8% of its holdings. Investors are expecting rapid growth in this one of the best railway sector stocks in the coming years.
- Ircon International Ltd.
Founded: 1976
Headquarters: New Delhi
Market Capitalisation: ₹21,400 crores
Ircon International Ltd. is engaged in the construction projects of Indian railways and gained Navratna status in 2023. The company is building tunnels, electrifications, highways, bridges, and metros in India. Ircon International Ltd. excels not only in the domestic market but also in foreign countries like Sri Lanka, Bangladesh, Nepal, and Malaysia. Experienced investors and analysts considered it one of the best railway stocks in India. Ircon International Ltd. provided its shareholders with a high dividend yield of 1.36%. Moreover, the stock showed a significant rise of 39.31% in the past year.
- BEML Ltd.
Founded: 1964
Headquarters: Bangalore, Karnataka
Market Capitalisation: ₹18,310 crores
BEML (Bharat Earth Movers Ltd.) is engaged in providing heavy equipment in the railway sector, such as mining, transport, earth moving, and more. The company has different manufacturing units in areas like Bangalore, Mysore, KGF, and more. However, the KGF unit is contributing the majority of equipment manufacture like excavators and bulldozers. Apart from such equipment, BEML also serves its clients with rail coaches and metro cars. Investors are showing interest in this one of the best railway stocks in India because of its consistent dividend payout policies and effective returns.
- RITES Ltd.
Founded: 1974
Headquarters: Gurugram
Market Capitalisation: ₹14,620 crores
RITES (Rail India Technical and Economic Service) Ltd. provides various services for the Indian railway. These include locomotive leasing, urban infrastructure, consultancy services, and the export of rolling stock. GOI owns around 72.20% of the stake in this organisation, which increases investor trust. RITES operates across sectors like ropeways, railways, airways, waterways, and metros.
- Railtel Corporation of India Ltd.
Founded: 2000
Headquarters: New Delhi
Market Capitalisation: ₹14,190 crores
Railtel Corporation of India Ltd. is an Indian public-sector undertaking that provides broadband and VPN (Virtual Private Network) services. Recently, it was recognised as Navratna. Railtel aims to modernise train control operations to offer seamless connectivity with customers. To achieve this aim, the company is revamping the railway telecommunication systems. Analysts consider Railtel Corporation to be one of the best railway stocks in India and rated it at 85% for buying in the coming years.
Railway Stock List With PE Ratio
| Stock Name | PE (Price-to-Earnings) Ratio | Analyst Ratings (in %) |
| BEML Ltd. | 64.17 | 67 |
| Rail Vikas Nigam Ltd. | 72.52 | 85 |
| IRCTC Ltd. | 55.57 | 76 |
| Railtel Corporation of India Ltd. | 54.39 | 85 |
| Container Corporation of India Ltd. | 41.08 | 63 |
| RITES Ltd. | 40.41 | 87 |
| IRFC Ltd. | 31.73 | 92 |
| Ircon International Ltd. | 23.33 | 78 |
*Data is updated as of 9th December 2024
How to Invest?
It is easy to invest in the stocks. However, investing in fundamentally strong railway sector stocks requires effort. One has to conduct thorough research and analysis on the potential stocks poised to grow in the coming years. Moreover, the selection of particular stocks is a complex task. You can seek professional/financial advice to choose the best railway stocks in India.
Consider Univest for the best stock recommendations to diversify your investment portfolio. Place a buy order from your demat account and execute it to invest potentially. You can track your returns in the portfolio section, and remember to book profit in a timely manner so as not to lose the returns.
To Conclude
For those who are looking to invest in the sector with a steady growth opportunity, listed railway companies are here to diversify their portfolios. Railway stocks in India not only appreciate investors’ capital but also offer high dividend payouts. It is essential to conduct your own research and adopt a personalised approach to invest and generate the highest possible returns. You can also use Univest, a trusted stock advisory platform, to make informed investment decisions. This platform consists of various educational resources and live charts to provide you with knowledgeable insight.
FAQs
1. What are the railway sector stocks?
Ans. Railway stocks in India represent shares of companies contributing to the daily operations of Indian railways. These include financial institutions, coach manufacturers, and more. Over the past few decades, the railway sector witnessed a drastic transformation, resulting in the increasing popularity of railway stocks.
2. What are the best railway stocks in India?
Ans. Here are some of the best railway stocks in India with their market capitalisation and analyst ratings.
| Stock Name | Market Capitalisation (in cr.) | Analyst Ratings (in %) |
| IRFC Ltd. | 2,06,000 | 92 |
| Rail Vikas Nigam Ltd. | 97,660 | 85 |
| IRCTC Ltd. | 66,680 | 76 |
| Container Corporation of India Ltd. | 52,210 | 63 |
| Ircon International Ltd. | 21,400 | 78 |
| BEML Ltd. | 18,310 | 67 |
| RITES Ltd. | 14,620 | 87 |
| Railtel Corporation of India Ltd. | 14,190 | 85 |
*Data is updated as of 9th December 2024
3. What are the risks for Indian railway stocks?
Ans. Besides being one of the largest networks on earth, the Indian railway comes with several risks that can impact investors. These risks include increasing competition, high debt levels, and changes in regulations. Investors should identify such risks and evaluate the mitigation strategies to make informed investment decisions.
4. Is investing in railway stocks worth it?
Ans. The Indian railways promise compelling growth avenues for companies engaged in this promising sector. Investors looking to build wealth in 2025 can consider the railway sector stocks. The robust growth potential and extensive government support will encompass the returns of these shares.
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*Data is updated as of 11th February 2025.
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*Data is updated as of 11th February 2025.
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