India’s railway system stands as an unmistakable emblem of robustness, propelling the nation’s economy with unyielding vigor. Globally positioned as the fourth-largest, trailing only behind the US, China, and Russia, the expansive network of Indian railways stretches across nearly the entire nation, serving as a crucial lifeline for economic advancement. Governed by the Railways Board, this infrastructure holds exclusive rights to deliver rail services throughout the country. With their cost-effectiveness and operational adeptness, railways persist as the favored mode of transportation for millions of Indians, particularly for extensive journeys.
Marching towards progress, the Indian Railways boasts an extensive network covering 68,043 kilometers of routes and stretching across 102,831 kilometers of tracks. Employing over 1.4 million people, it stands as India’s largest employer, wielding an immense influence on numerous businesses.
Let us delve into the realm of top railway stocks in India, which have recently surged after Finance Minister Nirmala Sitharaman announced an unprecedented capital expenditure outlay for the Indian Railways in the Union Budget 2023. The allocation of an impressive INR 2.40 lakh crore for the Indian Railways during the fiscal year 2023-24, nine times greater than the previous fiscal year, has set the stage for substantial growth and development.
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What Makes Railway Stocks Irresistible?
With the population continually on the rise and income levels ascending, the demand for railway services remains unwavering. Moreover, the vast expanse of the Indian railway network ensures that public and private businesses engaging in lucrative railway deals, represented by Indian railway stocks, will continue to thrive well into the future.
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Top Railway Stocks in India 2024
Now, let us embark on a journey through the realm of India’s leading railway companies, where we shall evaluate their prominence based on Market Capitalization.
#1 Indian Railway Finance Corporation (IRFC) – Biggest Among Top Railway Stocks in India
Indian Railway Finance Corporation (IRFC) is a financial powerhouse dedicated to supporting the expansion and modernization of Indian Railways. Established in 1986 under the Ministry of Railway (MoR), IRFC operates as a vital arm of the railway sector, fueling its growth through strategic financing solutions.
With a track record of excellence spanning over three decades, the IRFC plays a pivotal role in bridging the financial gap by borrowing funds from the market. These funds are then utilized to acquire and create essential railway assets, which are subsequently leased out to Indian Railways. Through this innovative approach, IRFC ensures a steady influx of capital to support the railway’s annual capital expenditure.
Over the years, IRFC has established itself as an outstanding non-banking financial company (NBFC), securing funds through various financial tools like bonds, loans, and lease financing. By 31 March 2023, its cumulative funding for the rail sector has exceeded an impressive INR 5.50 lakh crore. In a dynamic market, IRFC has shown remarkable growth, with revenues soaring at a swift compound annual growth rate (CAGR) of 20.80% over the last five years.
#2 Indian Railway Catering and Tourism Corporation (IRCTC): Among the Best Indian Railway Stocks in India
As India’s premier railway stock, the Indian Railway Catering and Tourism Corporation (IRCTC) stands out as a subsidiary of the Indian Railways. Established in 1999 and headquartered in New Delhi, IRCTC manages catering, tourism, and online ticketing operations. With an extensive network of catering units, including base kitchens, mobile catering units, and pantry cars, IRCTC ensures passengers enjoy top-quality meals during their train journeys.
They also manage food stalls, restaurants, and luxury tourist trains such as the Palace on Wheels, Maharajas’ Express, and Buddhist Circuit Tourist Train. With a sales compound annual growth rate (CAGR) of 19.29% over the last five years, IRCTC shines as one of the best railway stocks in India.
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#3 Rail Vikas Nigam (RVNL) – Transforming India’s Rail Infrastructure
Rail Vikas Nigam Limited (RVNL), a dynamic enterprise incorporated by the Government of India in 2003, has emerged as a pivotal player in revolutionizing India’s rail infrastructure. Entrusted with implementing a diverse range of rail projects assigned by the Ministry of Railways, RVNL has been instrumental in driving the expansion, electrification, and modernization of the nation’s railway network.
With a portfolio of 220 projects as of March 2023, RVNL has showcased its commendable execution capabilities. Having already completed 140 projects, RVNL has 77 projects currently under implementation, with three projects awaiting sanction.
RVNL’s growth trajectory is underscored by its impressive financial performance. Boasting a rapid CAGR of 21.70% in revenues over the past five years, RVNL has consistently generated rising net profits. Additionally, with a dividend yield of over 1.29%, RVNL stands among the top Railway Stocks in India.
#4 Container Corporation of India (CONCOR)
Container Corporation of India Limited (CONCOR) is the undisputed leader in India’s logistics industry. As a PSU owned by the Indian government, CONCOR has been instrumental in transforming the nation’s cargo transportation landscape since its establishment in 1988.
Headquartered in New Delhi, CONCOR spans coastal and inland locations, offering a comprehensive range of services, including containerized cargo transportation, handling, storage, and value-added solutions. Its commitment to cost-effectiveness, reliability, and efficiency makes it the top choice for customers in need of exceptional logistics services.
Through a sales CAGR of 4.32% over the past five years, CONCOR has consistently bolstered its revenues, affirming its status as an industry frontrunner. In the financial year 2023, CONCOR achieved a remarkable return on equity (ROE) of 10.6% and a return on capital employed (ROCE) of 13.7%.
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#5 Ircon International (IRCON)
Incorporated in 1976, Ircon International is an engineering and construction company headquartered in New Delhi, India. It is a public sector enterprise owned by the Government of India.
Ircon’s expertise spans multiple sectors, including railways, highways, bridges, tunnels, airports, metro systems, and buildings. With an impressive presence within India and across 21 countries worldwide, the company has showcased its ability to execute complex projects with unparalleled finesse.
In the railway sector, Ircon excels in constructing new lines, electrification, signaling, and other infrastructure projects. Notable projects include dedicated freight and high-speed rail corridors in India. With a rapid CAGR of 20.80% over 5 years, the company consistently sees growth in both revenues and net profits.
#6 Rail India Technical and Economic Service (RITES)
Established in 1974, RITES is a public-sector enterprise and ranks among the top railway companies in India. It holds a prominent position in the transport consultancy and engineering sector, offering diversified services with a wide geographical reach. Serving as the exclusive export arm of Indian Railways for rolling stock overseas (excluding Thailand, Malaysia, and Indonesia), the company currently provides a high dividend yield of over 4.11%. Over the last 5 years, its revenues have witnessed consistent growth at a CAGR of 11.90%.
#7 Titagarh Wagons
Titagarh Wagons is an Indian engineering company primarily engaged in the private sector in the manufacturing of railway wagons, steel castings, and heavy engineering products. The company was founded in 1997 and is headquartered in Kolkata, West Bengal, India.
Titagarh Wagons specializes in the design, development, and production of a wide range of railway wagons, including freight wagons, tank wagons, special-purpose wagons, and metro coaches. Apart from railway wagons, Titagarh Wagons also manufactures steel castings for applications in sectors such as railways, automobiles, power plants, and general engineering.
Titagarh Wagons, with manufacturing units in West Bengal, Uttarakhand, and Maharashtra, holds a significant presence in India. Listed on both NSE and BSE with a high PE of 66.4, the company has seen a robust 17.0% CAGR growth in revenues over the last 5 years, accompanied by a consistent increase in net profits.
#8 RailTel Corporation of India
Incorporated in 2000, RailTel Corporation of India is a Mini Ratna public sector enterprise under the Ministry of Railways. RailTel provides a wide range of telecom and networking services to the Indian Railways, as well as to other government organizations and private clients. Their services include high-speed internet, virtual private network (VPN), leased lines, video conferencing, and data center services. They also provide network management services, such as network operations center (NOC) and security operations center (SOC) services.
The company has a vast optic fiber network spread across India, covering over 61,000+ route kilometers of fiber and connecting more than 6,108+ railway stations. RailTel also provides various passenger services including content-on-demand services and Wi-Fi across major railway stations in India. It trades at a high PE of 60.9. The share price has increased 111.53% in the last 12 months, making it one of the best-performing railway stocks.
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#9 Bharat Earth Movers (BEML)
Bharat Earth Movers (BEML) was established in May 1964 as a PSU for the production of Rail Coaches for the Metro & Spare Parts and Mining Equipment at its Bangalore complex. The company is listed on both exchanges (BSE & NSE) with the government of India and is held by Financial Institutions, Foreign Institutional Investors, Banks, Public, and Employees.
BEML plays a pivotal role and serves India’s core sectors like Defence, Rail, Power, Mining, and Infrastructure. The company started in 1965 with a modest turnover of INR 5 crore but achieved its highest-ever turnover of INR 3,839.19 crore in FY 2023.
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#10 Texmaco Rail & Engineering
Texmaco Rail & Engineering is an Indian engineering company specializing in the manufacturing of railway rolling stock and infrastructure. The company was established in 1939 and is headquartered in Kolkata, West Bengal, India.
Texmaco Rail & Engineering provides a broad range of railway products and services, manufacturing and supplying wagons, coaches, locomotives, and components such as bogies, couplers, and underframes. Serving domestic and international markets, the company has a robust presence in India and globally.
Texmaco excels in railway innovation with its dedicated R&D division. As part of the Adventz Group, led by Saroj Poddar, a conglomerate with diverse interests, including agrochemicals and real estate, Texmaco has witnessed a remarkable 192.99% increase in its share price over the last 12 months.
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Top Railway Stocks in India by Market Capitalization January 2024
| Company Name | Market Cap (cr.) | P/E Ratio | Net Income (cr.) | 5 Year Sales CAGR (%) | Profit (%) |
| IRFC | 227,060 | 24.20 | 6337.0 | 20.80 | 415.0 |
| IRCTC | 77,616 | 70.20 | 1006.0 | 19.29 | 54.9 |
| RVNL | 62,945 | 28.50 | 1421.0 | 21.70 | 136.9 |
| CONCOR | 50,587 | 45.40 | 1173.0 | 4.32 | 28.5 |
| IRCON | 23,234 | 20.80 | 765.0 | 20.80 | 198.2 |
| RITES | 16,478 | 26.10 | 571.0 | 11.90 | 67.0 |
| Titagarh Wagons | 15,003 | 66.40 | 126.0 | 17.00 | 225.1 |
| RailTel | 14,013 | 60.80 | 189.0 | 14.80 | 257.3 |
| BEML | 13,348 | 66.00 | 158.0 | 3.78 | 130.1 |
| Texmaco Rail | 8,079 | 107.00 | 20.0 | 18.00 | 273.5 |
Conclusion
The railway industry anticipates significant growth in the upcoming years, presenting expanded opportunities for businesses. Positioned at the brink of a revolution, the railway sector in India, whether through the introduction of high-speed trains or stake sales, is set for substantial advancement. This trajectory indicates massive growth opportunities for the companies covered in this article.
Top Railway Stocks in India FAQs
Which are the top railway stocks in India?
Some of the top railway stocks in India include companies such as IRFC, IRCTC, CONCOR, and RVNL. These companies are actively involved in various aspects of the railway industry and are listed on the Indian stock exchanges.
What is the revenue of Railways in 2023?
Indian Railways has registered a record revenue of INR 2.40 lakh crore in the FY 2022-23.
Are railway stocks safe investment options?
Railway stocks, like any other investment, come with a certain level of risk. While railway companies in India are typically backed by government support and have a strong presence in the transportation sector, there are still factors that can impact their performance.
What are the long-term growth prospects of railway stocks in India?
The long-term growth prospects of railway stocks in India can be promising. With the government’s focus on modernization, capacity expansion, and infrastructure development, railway companies have the potential to benefit from these initiatives. However, monitoring industry trends, government policies, and the overall economic landscape is essential to make informed investment decisions.
