In this article we will discuss about best railway stocks in India which is listed on stock market.
Railway stocks have been booming significantly in recent times in the Indian investment market. Railways are participating in the growth of the country consistently. Indian Railways is the largest employer in India. The Indian Railway is the backbone of India. Indian Railway earns money from transporting individuals and goods.
As the government of India has started some trains by private players, it can improve the efficiency of Indian railways. Reaching a destination late will be the past. Some private trains offer refunds to their passengers for running late. It will be a great move by Indian Railway, which will increase productivity in the near future. This step will increase demand for Indian Railway.
The government of India is taking initiative towards high-speed trains like the Vande Bharat Express. It reduced the travel time of passengers, which is also a great move for Indian Railway.
Make in India The initiative of the government of India is helping railways in many ways. Through this initiative, Coaches of Trains, all the helping instruments of Indian Railway are manufactured in India only. By this, companies that manufacture their parts will benefit, which will strengthen the construction and manufacturing sectors as well.
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Top Railway Stocks in India
India is on its way to modernizing the Indian Railway by constructing more rail lines in the coming years. The government is privatizing the railway sector slowly, which will give a massive push to rail infrastructure. The companies in this sector will benefit; that’s why Indian railway stocks are in demand and giving good returns on investments.
Indian Railway Catering & Tourism Corporation Ltd. (IRCTC)
IRCTC is a major arm of the Indian Railway. IRCTC provides online ticket reservation facilities, catering, and travel services to passengers. The company’s main business is in the hospitality sector. IRCTC has given good returns since it was listed on the stock market. IRCTC debuted in the stock market on October 14, 2019. Rail Neer packaged drinking water comes under the IRCTC.
| Market Cap | 74,664 Cr |
| P/E Ratio | 67.53 |
| Industry P/E | 65.40 |
| Debt to Equity | 0.02 |
| Dividend Yield | 0.59% |
IRCTC share price target 2023 2024 2025 2030 2035
Indian Railway Finance Corporation (IRFC)
Indian Railway Finance Corporation Ltd. provides financing for the project. IRFC collects money through the capital market and provides lending to organizations involved in completing the railway projects. IRFC involves lending, borrowing, and leasing activities in Indian Railway projects and organizations.
IRFC has given good returns in the past year and has a good financial record of becoming the next multi-bagger stock. IRFC is a small-cap company and has good potential to become a mid-cap stock in the stock market.
| Market Cap | 1,94,263Cr |
| P/E Ratio | 32.18 |
| Industry P/E | 24.99 |
| Debt to Equity | 8.54 |
| Dividend Yield | 1.01% |
IRFC Share Price Target 2023, 2024, 2025, 2030, 2035
Rail Vikas Nigam Limited (RVNL)
Rail Vikas Nigam Ltd. (RVNL) is engaged in implementing new rail lines, railway electrification, metro projects, bridge construction, and institutional buildings. RVNL was listed on the stock market on April 11, 2019; since then, it has given good returns to investors.
In the last year, RVNL has given significant returns to investors. RVNL mainly provides construction solutions for Indian railway projects.
| Market Cap | 52,230 Cr |
| P/E Ratio | 35.89 |
| Industry P/E | 32.46 |
| Debt to Equity | 0.76 |
| Dividend Yield | 0.85% |
Container Corporation of India (CONCOR)
CONCOR is engaged in handling the rail and road transportation of containers. CONCOR manages logistic facilities, container freight stations, and private freight terminals. The company has two major divisions: export and domestic. These two divisions involve handling, transportation, and warehousing activities.
The company plays a vital role in the import and export of goods. Its e-filling software is an application that simplifies import-export services for CONCOR.
Concor was listed on July 19, 2002, and since then, the company has given more than 2000% returns to investors.
| Market Cap | 59,808Cr |
| P/E Ratio | 48.91 |
| Industry P/E | 39.85 |
| Debt to Equity | 0.07 |
| Dividend Yield | 1.12% |
Titagarh Wagons Ltd. (TWL)
Titagarh Wagons Limited manufactures transportation and passenger wagons for Indian Railways. After the Make in India initiative, TWL has benefited due to this initiative. The government of India has focused on in-house manufacturing for Indian Railway.
Titagarh has expertise in manufacturing rail rolling stock, defense, shipbuilding, heavy engineering, and infrastructure.
The company has given a good return to its investors since it was listed on the stock market on April 21, 2008. In just 1 year, Titagarh has given more than 389% returns.
| Market Cap | 12,711Cr |
| P/E Ratio | 49.75 |
| Industry P/E | 46.47 |
| Debt to Equity | 0.26 |
| Dividend Yield | 0.05% |
Titagarh Share Price Target 2023, 2024, 2025, 2030, 2035
Ircon International
Ircon International Ltd. is a government-oriented company engaged with the Ministry of Railways. Ircon involves engineering and construction projects for railway projects.
Ircon is working overseas in countries like Malaysia, Nepal, Bangladesh, Afghanistan, the U.K., and recently Sri Lanka. The company has a good amount of cash in hand, which is very helpful in the growth of the company.
| Market Cap | 21,467 Cr |
| P/E Ratio | 22.85 |
| Industry P/E | 36.21 |
| Debt to Equity | 0.30 |
| Dividend Yield | 1.31% |
Ircon Share Price Target 2023 2024, 2025, 2030, 2035
Rites limited-
RITES Limited is an India-based engineering and consulting firm that provides services in transportation infrastructure and related technologies. The company offers its services in about 55 countries, including the Middle East, South America, Latin America, and Asia. It also has business as a consultant, engineer management, operations and maintenance, leasing, and export of rolling stock.
RITES has given good returns to investors in the past year.
| Market Cap | 19,003 Cr |
| P/E Ratio | 41.19 |
| Industry P/E | 36.21 |
| Debt to Equity | 0.00 |
| Dividend Yield | 2.59% |
Bharat Electronics Ltd.
Bharat Electronics Ltd. is engaged in the design, manufacture, and supply of electronics products and systems for defense as well as for the railway. The company’s principal products include weapon systems, radar, fire control systems, etc.
| Market Cap | 1,50,983 Cr |
| P/E Ratio | 42.33 |
| Industry P/E | 42.76 |
| Debt to Equity | 0.00 |
| Dividend Yield | 0.87% |
Railtel Corporation of India
Railtel Corporation of India is a provider of broadband and VPN services. The company also provides telecom and IT infrastructure consulting services. The company was founded in September 2000 and is located in New Delhi, India.
Railtel Corporation of India provides signaling solutions, communication, and network services to Indian Railways. Railtel is responsible for the safety of Indian Railway.
Railtel is a small-cap company giving good returns to investors.
| Market Cap | 14,749Cr |
| P/E Ratio | 68.79 |
| Industry P/E | 56.94 |
| Debt to Equity | 0.03 |
| Dividend Yield | 0.55% |
Bharat Heavy Earth Movers Ltd. (BEML)
BEML is engaged in the manufacture of rail coaches, spare parts, and mining equipment. Its segments include mining and construction, rail and metro, defense, and aerospace.
BEML manufactures and sells equipment like hydraulic excavators, bulldozers, wheel loaders, wheel dozers, dump trucks, and motor graders.
The rail and metro division of the company produces and sells rail coaches, metro cars, electric equipment, steel, and aluminum wagons to the rail and metro industries.
| Market Cap | 13,356 Cr |
| P/E Ratio | 73.11 |
| Industry P/E | 42.76 |
| Debt to Equity | 0.17 |
| Dividend Yield | 0.31% |
Benefits of Investing in Indian Railway
1. Minimal operating costs
Railways are a cash-rich industry due to their low operating costs. In the rail industry, inventory used only requires maintenance. Transportation via air and water is expensive, so the railway is the best solution for low-cost transportation.
2. Sustainability and Growth
Indian railways have a large exposure to development in rural areas. The Indian government has a plan to make a separate line for goods transportation only. The electrification of rail lines has reduced the high oil cost of rail operations.
3. Consistency in Demand
The Indian Railway may be slow, but it is safe to travel. The railway is operating a 24/7 model. The railway will always remain a safe and economical mode of transportation for passengers or goods.
Future Projects of the Indian Railway
Indian Railway is considering a plan for a separate line for goods transportation. By which the transportation of goods will be the earliest and easiest. Indian Railway makes more money by transporting goods than passengers.
Conclusion-
These railway companies are consistent performers in terms of revenue, profit, and cash flow management. Railway stoks will always be a good investment opportunity with long-term returns. If you are an investor in a diversified portfolio, then you should definitely have some railway stocks in your portfolio for better returns and low risk. I hope this article is helpful for you. If you like it, then please leave your suggestions in the comment box.
Name of penny stocks in indian rail