Promising Railway Stocks surge in anticipation of Union Budget 2024 investment: The Indian Railway Industry is currently experiencing a significant surge in its stock prices as investors hold high hopes for the unveiling of fresh investments in Railway infrastructure development within the upcoming Union Budget 2024. Moreover, robust expectations concerning Quarter 3 results have further contributed to the bullish trend displayed by these railway stocks.
Table of Contents
#5 Best Railway Stocks before Union Budget 2024
| Name | Price | Expecting Price after Budget |
| IRFC (Indian Railway Finance) | Rs.172.45 | Rs. 350+ |
| IRCTC | Rs. 977.00 | Rs. 1500+ |
| RVNL (Railway Vikash nigam | Rs. 298.50 | Rs. 500+ |
| Railtel Corp | Rs. 394.75 | Rs. 750+ |
| IRCON International | Rs. 240.95 | Rs. 500+ |
#Why Railway Stocks?
Anticipated Government Fresh Investment:
Market analysts attributed the sudden rally in railway stocks to the ambitious plans of the Govt. of India to allocate substantial investments towards enhancing the Indian railway sector in the forthcoming Budget 2024. This move is expected to create a positive market sentiment surrounding the railway sector, prompting investors to show increased interest.
Fundamentally Strong companies:
All these 5 railway stocks are fundamentally very strong.
Under Rs. 500:
Stocks price is under Rs. 500. IRCTC is under Rs. 1000.00
High Return:
All these 5 railway stocks gave up to 416.10% return in 1 year.
High Dividend Yield:
All of this Railway stocks companies are high dividend yield companies. IRFC announced two times cash dividend last year, IRCTC delivered 3 times dividend in 2023, IRCON delivered two times dividend in 2023, Railtel delivered three times dividend in 2023, RVNL gave two times dividend in 2023.
1st Railway Stock-IRFC: 1-year return: 416.10%
About the company:
Indian Railway Finance Corporation (IRFC) is a public sector enterprise that was founded in December 1986 to raise money from domestic and international markets to cover the majority of Indian Railways’ need for extra budgetary resources. It is scheduled a Mini Ratna Public Sector Enterprise that reports to the Government of India’s Ministry of Railways. The main activities of IRFC include providing funding for the purchase of rolling stock, leasing of railway infrastructure, and lending to organisations that fall under the Ministry of Railways (MoR).
The IRFC has supported 76,735 passenger coaches and 2,65,815 goods waggons, according to the most recent data. The business has also provided funding for project assets totaling INR 2,20,485 crores. When it comes to managing assets, IRFC is placed 92nd.
How does IRFC generate revenue?
According to the most recent data, IRFC’s operating revenue for FY 2022–23 increased by 17.70% to INR 23,891 crores from INR 20,298 crores recorded in FY 2021–22. Additionally, the company reported a profit of INR 6,337 Cr for FY 2022–23 as opposed to INR 6,090 Cr for FY 2021–22.
The IRFC makes money in a number of ways, including by funding the purchase of rolling stock, leasing railway infrastructure, and making loans to organisations that fall under the Ministry of Railways (MoR). Additionally, the business has released green offshore bonds and agreed to jointly finance railway infrastructure projects with IIFCL.
Fundamentals of IRFC:
- Market Cap: Rs. 2, 11, 030 Cr
- P/R Ratio: 16.07
- P/B Ratio: 2.13
- Industry P/E: 22.96
- Debt to Equity Ratio: 8.52
- ROE: 13.25%
- EPS (TTM): 4.77
- Dividend Yield: 0.93%
- Book Value: 36.49
- Face Value: 10
IRFC is fundamentally very strong stock because 86.36% is promoters’ holding.
2nd Indian railway share price- IRCTC-Past 1 year return: – 48.76%
About the company:
The Ministry of Railways of the Government of India oversees the Indian Railway Catering and Tourism Corporation (IRCTC), a Central Public Sector Enterprise that offers ticketing, catering, and tourism services to the Indian Railways. The largest government-owned catering company in India right now is IRCTC.
The services offered by IRCTC include the ability to order train tickets online, check the status of a ticket reservation, and create travel itineraries. Additionally, the business provides catering services to passengers in trains and at railway stops. IRCTC is the 10th-ranked Indian public sector enterprise in terms of assets under management.
Fundamentals of IRCTC:
- Market Cap: RS. 55, 984 Cr
- P/E ratio: 56.39
- P/B Ratio: 22.59
- Industry P/E: 55.64
- Debt to Equity; 0.03
- ROE: 40.59%
- EPS (TTM): 12.41
- Dividend Yield: 0.79%
- Book Value; 30.98
- Face Value; 2
IRCTC is fundamentally very strong stock because 62.40% is promoters’ holding.
3rd Indian Railway Share price- RVNL- 295% last year
About the company:
In the Government of India, the Ministry of Railways’ construction division for project implementation and the growth of transport infrastructure is called Rail Vikas Nigam Limited (RVNL), a Central Public Sector Enterprise. The Government of India established RVNL in 2003 with the dual goals of raising extrabudgetary resources and carrying out projects linked to the development and expansion of rail infrastructure on a time-sensitive basis.
Fundamentals of the company:
- Market Cap: Rs. 35, 518 CR
- ROE; 19.39%
- P/E Ratio: 24.23
- Debt to Equity: 0.88
- Dividend Yield: 1.25%
- Book Value: 35.13
- Face Value: 10
Rail Vikas Nigam is fundamentally very strong stock because 78.20% is promoters’ holding.
4th Indian Railway Share price- Railtel Corp 216.97% profit last year
About the company:
Broadband and VPN services are provided by the public sector company Railtel Corporation of India, which is part of the Indian government’s Ministry of Railways. The business was established in September 2000 with the aim of modernising Indian Railways’ train control operation and safety system as well as building a nationwide broadband, telecom, and multimedia network.
A division of the Indian Railways, Railtel Corporation is headquartered in New Delhi. Since February 2021, the company has been traded on stock exchanges. As of October 13, 2023, the share price of Railtel Corporation on the BSE/NSE was INR 227.10, according to the most recent data that is currently available.
Fundamentals of the company:
- Market Cap: Rs. 7, 670 CR
- ROE: 11.47%
- P/E Ratio: 38.06
- P/B Ratio: 4.65
- Dividend Yield: 1.07%
- Debt to Equity Ratio: 003
This Railway stock India is also fundamentally very strong because promoters’ holding is 72.84%
5th Indian Railway Shares- IRCON International- 1-year return- 314%
About the company:
A government-owned business, IRCON International Limited, or IRCON, offers turnkey solutions for a range of infrastructure projects both domestically and internationally. The Ministry of Railways founded it in 1976 as the Indian Railway Construction Company Limited. It is present in over 20 nations and has finished over 300 projects in India as well as over 100 projects worldwide. Its areas of expertise are metro rail systems, electrical substation engineering and construction, and railway and highway construction.
Fundamentals of the company:
- Market Cap: Rs. 21.613 CR
- ROE: 15.96%
- Dividend Yield: 1.31%
- Debt to Equity: 0.30
- P/E ratio: 24.42
- P/B Ratio: 3.90
- Book Value; 58.94
- Face value:2
Again this Railway stock is also fundamentally very strong as promoters’ share holding is 65.17%
How to invest in Railway Stocks India?
- Groww, Upstox or Angelone
- Open FREE Demat Account (Complete online KYC)
- Login
- Add Money to wallet
- Buy the stocks in Delivery
(Disclaimer: All the Railway stocks names discussed above are for only information purpose or educational purpose. This is not an investment advice/suggestion. Always invest at your own risk and analysis.)
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