Railway Stocks: Despite Sensex and Nifty climbing to record highs, railway PSU stocks IRCTC and IRFC have given negative returns. The revival of the sluggish RVNL on Friday has brought the stock out of the negative zone on a one-month basis, but is still lagging behind the market pace. In one month, most of the railway stocks have given zero returns to their respective shareholders. IRCTC share price declined by about 3.40 percent in one month, IRFC share price fell by 7.37 percent in one month, RVNL share price increased marginally in one month, while IRCON share price declined by about 10 percent in this period. Railtel share price has declined by 2 percent in one month.
According to market experts, these railway stocks failed to attract investors in the first quarter of FY 2025. After the formation of the new government, PSU companies are expected to pick up pace and recent cabinet decisions regarding new railway line projects etc. may increase their speed. Railway stocks are available at discounted prices, so you can turn to IRFC and RVNL shares.
Dr Ravi Singh, Senior Vice President (Retail Research), Religare Broking, told Live Mint, “Multi-bagger stocks like railway stocks IRCTC, IRFC and RVNL have not given any returns in the last one month. This could be an attractive opportunity. Investors may want to accumulate companies with strong financials and healthy order books, which are potential beneficiaries of India’s infrastructure push and modernisation plans.”
“Railway stocks are good for long-term investment[asthegovernment’scontinuedfocusoninfrastructuredevelopmentincludingrailwayswillsupportthegrowthprospectsofthesecompanies”saidSeemaSrivastavaseniorequityresearchanalystatSMCGlobalSecurities
Who is better among IRCTC, IRFC and RVNL
IRCTC: According to the company’s management, expansion plans in new business verticals, strategic partnerships and collaborations will contribute to its growth. The company expects to diversify its revenue sources and explore innovative business models to unlock new opportunities and improve its operating performance in the coming quarters.
IRFC: The company strategically supports railways’ capex funding for infrastructure projects and plans to lay around 40,000 km of new tracks in the next six to eight years.
RVNL: On the development front, Rail Vikas Nigam is in the business of executing all types of railway projects including construction of new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, cable-stayed bridges, institute buildings etc. They can collaborate to jointly work on railway infrastructure and services projects in the ASEAN market and other regions.
RVNL’s next target is Rs 647
Talking about buying railway stocks today, Shiju Vasu Koothupalakkal, Senior Manager, Technical Research, Prabhudas Lilladher said, “Among railway stocks, IRFC and IRCTC, RVNL stocks look technically in a strong position. Taking support near Rs 514 level with a high low formation visible on the daily chart, maintaining above the important 50 EMA zone. It is expected to be a positive move in the coming days. The next target is Rs 647. After this, if we maintain the strength, we can further achieve the next level of Rs 690.”