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Which Indian Railway Stocks should you invest in 2024

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Published Date: 28 Jun 2024Updated Date: 27 Dec 20246 mins readBy MOFSL

Introduction

The biggest beneficiary of the Indian government’s high capital expenditure is the country’s railway sector. The high allocation each year towards constructing new rail lines and upgrading the existing infrastructure has resulted in businesses that execute government orders, expanding rapidly.

Let's check out the top 8 best Indian Railway Stocks in India for the year 2024.

Overview of the Top 8 Best Indian Railway Stocks in India 2024 (On the basis of Analyst Ratings and Market Capitalisation)

A brief overview of the top 8 best Indian railway sector stocks in India 2024, based on Market Capitalisation and Analyst Ratings, have been presented below.

Indian Railway Finance Corp Ltd

Indian Railway Finance Corp Ltd, famously known as IRFC, was established in 1986. It forms the robust financial arm of the Indian Railways that mainly operates via the finance and leasing segment. 

This company follows a leasing approach when it comes to funding the Indian Railways. It primarily borrows funds from the financial markets in order to finance the development or acquisition of assets, which then get leased to the railways for further development.

IRCTC Ltd

Indian Railway Catering and Tourism Corporation Limited was founded in 1999. This company is largely involved in providing railway tickets, packaged drinking water at railway stations and in trains, and also catering services to railways. 

It provides an extensive range of services that cater to every need of an individual traveling via train in India. Some of the most prominent services include bottled drinking water, mobile catering, dormitories, retiring rooms, executive lounges, and so on.

Rail Vikas Nigam Ltd

Rail Vikas Nigam Limited, or simply, RVNL, is a company that's completely involved in the development of rail infrastructure. Its primary business includes infrastructure related to bridges, new rail tracks, workshops, production units, electrification, and so on.

Ranging from government ministries, to PSUs, RVNL possesses a vast network of clients. It is a very important entity that is responsible for the implementation and execution of every kind of railway project, metro project, railway electrification, construction of cable-stayed bridges, and much more.

Container Corporation of India Limited 

Container Corporation of India Limited, commonly known as CONCOR, is engaged in the realm of logistics and transportation services. The 2 primary segments of CONCOR, i.e, EXIM and Domestic, are involved in the operation, transportation, and warehousing processes.

It was established in 1988, and ever since then, it has been playing a crucial role in the transportation and handling of containers across railways, airways, roadways, and so on.

Ircon International Ltd

Ircon International Limited is an integrated engineering and construction company under the Ministry of Railways in India. It was established in 1976, and ever since then, it has been engaged in the infrastructure associated with railways, metros, tunnels, railway electrification, highways, bridges, etc.

It has served in countries such as Nepal, Malaysia, Bangladesh, Sri Lanka, and so on, and has completed more than 120+ international and 390+ domestic projects in approximately 25 countries. 

Titagarh Rail Systems Ltd 

Titagarh Rail Systems Limited, formerly called the Titagarh Wagons Limited, was established in 1997 with the sole purpose of supplying passenger rolling stock, also including metro coaches.

This company operates through four business divisions, namely Railway Transit, Railway Freight, Shipbuilding, and Engineering. Besides all these, it also designs and manufactures wagons like clinker wagons, container flats, cement wagons, tank wagons, and much more.

RITES Ltd

RITES Limited was established in 1974. It is a Navratna and Schedule 'A' Central Public Sector enterprise. This consulting and engineering firm works on turnkey projects, provides quality assurance, leases and exports of railroad rolling equipment, wet leases of locomotives, and much more.

This company is primarily active in the sectors of railways, metros, ropeways, airports, green mobility, inland waterways, urban engineering, etc.

BEML

Bharat Earth Movers Limited is a public railway sector stock company. It is primarily engaged in the manufacturing of construction and mining equipment, railway rolling stock, and defense products. BEML manufactures a wide range of railway rolling stock, including coaches, locomotives, and wagons for the Indian rail stocks. 

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Moreover, it is involved in the defense sector, thereby producing a wide range of aerospace and defense products.

Final Words 

The introduction of newer projects, refurbishing of premier coaches, and increase in the allocation of funds for track renewal in the Union Budget offers a compelling opportunity for investors who are looking to diversify their portfolios and take advantage of the growth potential of the railway sector in India. Furthermore, the commitment of the government to improve the country's transportation infrastructure presents a stable foundation for railway stocks in India, making rail shares a promising investment opportunity. 

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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