Best Railway Stocks In India – Railway Stocks

Railway stocks in India represent shares of companies involved in the railway sector, including manufacturers of trains, railway infrastructure providers, and suppliers of related equipment and services. These stocks offer investors exposure to the growth and modernization of India’s extensive railway network, driven by government initiatives and infrastructure investments.

The table below shows the best railway stocks in India based on the highest market capitalisation and 1-year return.

Introduction to Railway Stock List In India

Texmaco Rail & Engineering Ltd

The Market Cap of Texmaco Rail & Engineering Ltd is Rs. 7,898.69 crores. The stock has a monthly return of -11.68%. Its one-year return stands at 69.66%. Currently, the stock is 17.84% away from its 52-week high.

Texmaco Rail & Engineering Limited is an India-based company specializing in the manufacturing of a diverse range of products, including railway freight cars, hydro-mechanical equipment, industrial structures, loco components and steel girders for railway bridges. 

The company also undertakes engineering, procurement, and construction (EPC) contracts for railway track execution, signalling, telecommunication projects, rail electrification and automatic fare collection systems on a turnkey basis.  

Jupiter Wagons Ltd

The Market Cap of Jupiter Wagons Ltd is Rs. 23,718.83 crores. The stock’s monthly return is -11.02%. Its one-year return is 55.24%. The stock is 32.96% away from its 52-week high.

Jupiter Wagons Limited is a fully integrated railway engineering company that specializes in manufacturing freight wagons and passenger coach items for the Indian Railways. The company is involved in the production of railway wagons, wagon components, castings, and metal fabrication, including load bodies for commercial vehicles, rail freight wagons and related components. 

Its diverse product range comprises wagons, wagon accessories, passenger coaches, passenger coach accessories and complete track solutions. Jupiter Wagons Limited offers a variety of wagon products, such as open wagons, covered wagons, flat wagons, hopper wagons, container wagons and specialized wagons.  

Titagarh Rail Systems Ltd

The Market Cap of Titagarh Rail Systems Ltd is Rs. 20,123.63 crores. The stock’s monthly return is -7.88%. Its one-year return is 86.84%. The stock is currently 29.48% below its 52-week high.

Titagarh Rail Systems Limited, previously known as Titagarh Wagons Limited, specializes in supplying passenger rolling stock including metro coaches. 

The company’s product portfolio comprises electric propulsion equipment like traction motors and vehicle control systems. It also designs and produces various types of wagons such as container flats, grain hoppers, cement wagons, clinker wagons, and tank wagons. Titagarh Rail Systems Limited operates through four divisions: Railway Freight, Railway Transit, Engineering, and Shipbuilding. The Railway Freight division offers rolling stock and components such as cast bogies, couplers, draft gear, loco shells, and cast manganese steel crossing. 

Oriental Rail Infrastructure Ltd

The Market Cap of Oriental Rail Infrastructure Ltd is Rs. 1,976.83 crores. The stock’s monthly return is -18.39%. Its one-year return stands at 392.33%. The stock is currently 37.69% away from its 52-week high.

Oriental Rail Infrastructure Limited is an India-based company engaged in the manufacturing, buying and selling of various railway-related products, such as Recron, seat and berth components, lavatory doors, and Compreg boards. 

The company also trades in timber woods, ferrous and non-ferrous metals, casting tools, slabs, and rods. It caters to both domestic and international markets, with its products used in all types of railway coaches, from premium trains like Rajdhani Express and Duronto Express to regular and local passenger trains.  

BEML Ltd

The Market Cap of BEML Ltd is Rs. 16,137.45 crores. The stock’s monthly return is -14.37%. Its one-year return stands at 79.11%. The stock is currently 40.88% below its 52-week high.

BEML Ltd (Bharat Earth Movers Limited) is a prominent public sector company in India, primarily engaged in manufacturing and supplying heavy equipment to the railways, defence and mining sectors. 

Founded in 1964, BEML is a key player in the railway sector, producing a wide range of products, including rail coaches, wagons and metro cars. The company plays a vital role in supporting the expansion and modernization of India’s railway infrastructure. BEML’s diverse portfolio and strategic importance make it a significant player in the Indian railway stocks market.

What Are Railway Stocks in India?

Railway stocks in India refer to shares of companies that operate within the railway sector, including passenger and freight services. These companies are involved in various aspects of railways, such as construction, maintenance, operations and associated infrastructure. 

Investing in railway stocks can provide exposure to the country’s transportation industry, which is crucial for the economy’s development.  The Indian railway market offers various investment opportunities due to its extensive network and growth potential. Factors such as government initiatives, modernization efforts and rising freight traffic contribute to the attractiveness of railway stocks. 

Features Of Best Railway Stocks In India

The key feature of the best railway stocks in India is their alignment with the country’s infrastructure growth and modernization plans, offering investors the potential for long-term gains as the railway sector expands.

1. Strong Government Backing: The feature of receiving robust government support through policies and investments ensures consistent growth and stability for companies in the railway sector, making these stocks attractive for long-term investors.
2. Diverse Revenue Streams: The feature of having multiple revenue streams, such as manufacturing, services, and exports, allows top railway companies to mitigate risks and maintain profitability even during economic fluctuations.
3. Technological Advancements: The feature of investing in cutting-edge technologies and innovation helps railway companies stay competitive and meet the increasing demand for modernized railway infrastructure, boosting their market position and stock performance.
4. Strategic Partnerships: The feature of forming strategic partnerships and collaborations, both domestically and internationally, enables railway companies to expand their market reach, enhance product offerings, and drive growth.
5. Dividend Potential: The feature of consistent dividend payments, often seen in well-established railway stocks, provides investors with a steady income stream while benefiting from potential capital appreciation.

Top Railway Stocks In India Based on 6-Month Return

The table below shows the top railway stocks in India based on 6-month returns.

Best Indian Railway Stocks in India 2024 Based on 5 Year Net Profit Margin

The table below shows the best Indian railway stocks in India 2024 based on 5-year net profit margin.

Top Railway Stocks Based on 1M Return

The table below shows the top railway stocks based on a 1-month return.

High Dividend Yield Railway Stocks

The table below shows the high dividend yield railway stocks.

Historical Performance of Railway Sector Stocks

The table below shows the historical performance of railway sector stocks.

Factors To Consider When Investing In Railway Stocks India

The key factors to consider when investing in railway stocks in India include the sector’s alignment with economic growth, infrastructure development and government policies. 

1. Economic Growth and Infrastructure Development: The factor of economic growth and infrastructure development influences railway stocks as a growing economy boosts demand for rail transport, leading to increased revenue for companies. Government investment in infrastructure, particularly in railways, further enhances the sector’s growth prospects.
2. Urbanization Trends: The factor of increasing urbanization drives demand for rail services, especially in metropolitan areas, which boosts the profitability of railway companies. As cities expand, the reliance on efficient rail transport grows, making railway stocks more attractive to investors.
3. Government Policies and Support: The factor of government policies, including subsidies and investment initiatives, directly impacts the railway sector. Supportive policies can lead to improved infrastructure, better operational efficiency, and increased profitability, making these stocks a promising long-term investment.
4. Technological Advancements: The factor of technological advancements, such as the modernization of railway networks and the introduction of high-speed trains, enhances operational efficiency and customer satisfaction. This can lead to increased ridership and revenue, benefiting investors in railway stocks.
5. Financial Stability: The factor of financial stability is crucial, as companies with strong balance sheets and low debt levels are better positioned to weather economic downturns. Railway companies with solid financial health offer a stable investment option, providing confidence to investors.

How To Invest In Top Railway Stocks In India?

To invest in top railway stocks in India, start by opening a trading account with a trusted brokerage like Alice Blue. Research the leading railway companies, assess their financial health and analyze market trends. Once you’ve identified promising stocks, execute your trades via your Alice Blue account. 

Impact of Government Policies on Railway Sector Stocks In India

Government policies play a crucial role in shaping the performance of railway sector stocks in India. Policies that promote infrastructure development and modernization directly boost investor confidence, leading to positive stock performance.

Subsidies and financial incentives provided by the government also enhance the profitability of railway companies, making them more attractive to investors. Additionally, favourable regulatory frameworks streamline operations and reduce costs.

On the other hand, restrictive policies or delayed government projects can negatively impact stock performance, highlighting the importance of continuous government support in this sector.

How Railway Stocks Perform in Economic Downturns?

Railway stocks tend to exhibit resilience during economic downturns, primarily due to the essential nature of rail transport in India. The consistent demand for freight and passenger services helps stabilize revenues, even in challenging economic conditions.

However, prolonged downturns can impact profitability as companies face reduced cargo volumes and passenger travel. Despite these challenges, the strong government backing and strategic importance of the railway sector often cushion the blow, making railway stocks relatively stable compared to other sectors.

Advantages Of Investing In the Best Railway Stocks In India?

The primary advantage of investing in the best railway stocks in India is the sector’s consistent demand, driven by the essential nature of rail transport for both passengers and freight, ensuring stable revenue streams.

1. Government Support: Railway stocks benefit from strong government backing, including subsidies and infrastructure investments, which enhance operational efficiency and profitability, making them a reliable investment option.
2. Growth Potential: With ongoing infrastructure development and modernization projects, railway companies are poised for long-term growth, offering investors the opportunity to capitalize on future market expansion.
3. Dividend Yield: Many top railway companies have a history of paying dividends, providing investors with a steady income stream in addition to potential capital appreciation.
4. Economic Resilience: The essential nature of railway services makes these stocks relatively resilient during economic downturns, offering stability in volatile markets compared to other sectors.
5. Urbanization Trends: Increasing urbanization and the expansion of metropolitan areas drive demand for efficient rail transport, leading to higher revenue and growth prospects for railway companies, making them an attractive investment.

Risks Of Investing In the Best Railway Stocks In India?

The main risk of investing in the best railway stocks in India is their sensitivity to government policies, which can significantly impact profitability and growth. Policy changes or delays in infrastructure projects can lead to revenue fluctuations.

1. Economic Downturns: During economic slowdowns, reduced freight and passenger volumes can negatively impact railway companies’ revenue and profitability, making these stocks more vulnerable to market volatility.
2. Regulatory Challenges: Stringent regulations and compliance requirements can increase operational costs and reduce margins for railway companies, potentially affecting their financial performance and stock value.
3. Competition: Growing competition from other modes of transport, such as road and air, can lead to a loss of market share, impacting the revenue and profitability of railway companies.
4. Operational Risks: The railway sector is prone to operational risks, such as accidents, strikes, and technical failures, which can lead to service disruptions and financial losses, affecting stock performance.
5. Infrastructure Delays: Delays in infrastructure projects can hinder the expansion and modernization efforts of railway companies, slowing down growth and affecting investor returns in the long term.

Railway Sector Stocks List GDP Contribution

The railway sector in India is a significant contributor to the nation’s GDP, playing a vital role in economic development. It facilitates the movement of goods and passengers across the country, making it an essential part of the logistics and transportation network.

Investing in railway sector stocks not only taps into this critical infrastructure but also aligns with the growth trajectory of the Indian economy. As the government continues to invest in and modernize the railway sector, the potential for increased GDP contribution and stock performance remains strong.

Who Should Invest in Railway Sector Stocks?

Investing in railway sector stocks is ideal for those seeking long-term growth in a sector backed by government support and steady demand. This investment option suits individuals looking for stability in essential infrastructure.

1. Long-Term Investors: Those with a long-term investment horizon can benefit from the gradual growth and modernization of the railway sector, which is poised for sustained development.
2. Risk-Averse Investors: Investors looking for relatively stable returns in a volatile market may find railway stocks appealing due to their essential nature and government backing.
3. Income-Seeking Investors: Individuals seeking dividend income can consider railway stocks, as many companies in this sector have a history of providing consistent dividends.
4. Infrastructure Enthusiasts: Those who believe in the growth potential of India’s infrastructure and transportation sectors will find railway stocks a fitting addition to their portfolio.

Impact of Freight Rates on Railway Stocks

Freight rates play a significant role in the performance of railway stocks. Recently, there has been a notable impact due to fluctuating demand and rising operational costs. As railroads experience declining volumes and revenues, they are likely to increase freight rates to offset these challenges. This situation has led to mixed outcomes for railway stocks.

List Of Railway Stocks In NSE – FAQs

Click the link to access the web story now: Railway Stocks In India

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.