“Top Railway Stocks of India in 2024” – In the vast landscape of Indian stocks, railway stocks hold a unique allure. Despite the limited options, the demand for these top railway stocks remains unwavering. Investors, always on the lookout for solid opportunities, are drawn to the stability and potential growth of the railway sector. Taking the recent surge of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) as an example, where the stock witnessed an impressive 893% surge in just two years, it sparks curiosity about the secrets behind the rally of railway stocks and prompts us to explore the top railway stocks in India 2024 listed on Indian Stock Exchanges.
The Journey of Indian Railways: A Historic Perspective
In 1844, the inception of Indian Railways marked a pivotal moment in transportation history. Lord Hardinge’s approval allowed private companies to lay the groundwork for railway routes, with the East India Company leading the charge. Fast forward to today, Indian Railways stands as the fourth-largest railway system globally, covering 67,956 km and boasting 7,335 stations. In the fiscal year 2021, the freight loadings surged by 18%, generating a staggering $16 billion in revenues. This robust performance solidifies the railway sector’s resilience and status as a thriving industry.
List of Top Railway Stocks of India in 2024
| Accord Code | Name | Current Market Price (₹) | 52 Week High (₹) | 52 Week Low (₹) | Market Capitalisation (in crores) |
|---|---|---|---|---|---|
| 208412 | Indian Railway Catering and Tourism Corporation | ₹960.90 | ₹1,049 | ₹557.1 | ₹77,188.00 |
| 100049 | Bharat Electronics Limited | ₹205.40 | ₹209 | ₹89.65 | ₹150,070.00 |
| 131344 | Container Corporation of India Limited | ₹991.35 | ₹1,027.65 | ₹555 | ₹60,140.00 |
| 217280 | Indian Railway Finance Corporation | ₹153.85 | ₹156.65 | ₹151.6 | ₹200,210.00 |
| 209037 | Rail Vikas Nigam Ltd | ₹271.75 | ₹276.95 | ₹267.55 | ₹55,170.00 |
| 100048 | Bharat Earth Movers Limited | ₹3,260.95 | ₹4,144.25 | ₹1,128 | ₹12,797.00 |
| 123596 | Ircon International | ₹234.70 | ₹280.85 | ₹50.1 | ₹21,811.00 |
| 222822 | Texmaco Rail and Engineering Ltd | ₹200.00 | ₹231.8 | ₹40.6 | ₹7,561.00 |
| 200115 | Titagarh Railsystems | ₹985.75 | ₹1,248.90 | ₹207 | ₹13,231.00 |
| 220674 | Commercial Engineers & Body Builders Co Limited | ₹2,880.95 | ₹3,440.15 | ₹1,807.70 | ₹31,943.00 |
| 209930 | ARSS Infrastructure Projects Ltd | ₹22.50 | ₹22.5 | ₹18.55 | ₹42.18 |
Why the Craze for Railway Stocks?
1. Low Operating Costs: The Railway Advantage
Railways, often dubbed a cash-rich business, boast minimal operating costs. Unlike other modes of transport, their inventory requires only modest maintenance, making them resilient even in economic downturns. During the COVID-19 pandemic, freight loadings increased by 18%, highlighting the preferability of railway freights in challenging economic times.
2. Entry Barrier: The Monopoly Factor
With a virtual monopoly in India, the railway sector stands as a fortress. The colossal investment required to lay tracks and establish an extensive network makes it nearly impossible for new competitors to enter the market. This dominance grants railways pricing power, making them a compelling choice even if service charges are higher.
Top Railway Stocks of India in 2024
1. Indian Railway Catering Tourism Corporation Ltd (IRCTC)
IRCTC, a Mini Ratna for the Government of India, is a significant player in the railway sector. Established in 1999, it focuses on upgrading, professionalizing, and managing railway services for travelers. With a market capitalization of Rs. 77,188 crores, IRCTC has excelled in catering, internet ticketing, travel and tourism, and packaged drinking water (Rail Neer). The company maintains a healthy dividend payout of 59.70%.
Quick overview of IRCTC:
- Market Cap (Cr): ₹77,188 Cr.
- Face Value: ₹2
- EPS: ₹13.81
- Book Value: ₹35.6
- Roce (%): 59.2
- Debt to Equity: 0.02
- Stock PE: 68.2
- ROE (%): 45.4
- Dividend Yield (%): 0.57
- Promoter’s Holdings (%): 0.0
- Total Debt (Cr): ₹67
Data as of 27th Feb 2024
2. Bharat Earth Movers Limited (BEML)
BEML, a PSU company, dominates the heavy equipment sector, controlling 70% of India’s market. Known for manufacturing earthmoving equipment and rail coaches, BEML stands out as the second-largest manufacturer of earthmoving equipment in Asia.
Quick overview of BEML:
- Market Cap (Cr): ₹12,797 Cr
- Face Value: ₹10
- EPS: ₹43.92
- Book Value: ₹569
- Roce (%): 10.5
- Debt to Equity: 0.17
- Stock PE: 70
- ROE (%): 6.3
- Dividend Yield (%): 0.33
- Total Debt (Cr): ₹391
- Promoter’s Holdings (%): 54.03
Data as of 27th Feb 2024
3. Titagarh Wagons Limited (TWL)
TWL, established in 1997, is the second-largest freight wagon manufacturer in India. With a diversified product range, the company generates 35% of its revenue from manufacturing freight wagons, passenger coaches, metro train coaches, and train electricals.
Quick overview of TWL:
- Market Cap (Cr): ₹13,231 Cr
- Face Value: ₹2
- EPS: ₹20.31
- Book Value: ₹103
- Roce (%): 17.6
- Debt to Equity: 0.26
- Stock PE: 51.8
- ROE (%): 13.9
- Dividend Yield (%): 0.05
- Total Debt (Cr): ₹362
- Promoter’s Holdings (%): 44.29
Data as of 27th Feb 2024
4. Container Corporation of India Limited (CONCOR)
CONCOR, a navratna company incorporated in 1988, serves as a catalyst for promoting container use in the freight process. As an autonomous PSU under the Ministry of Railways, CONCOR contributes significantly to India’s international trade.
Quick overview of CONCOR:
- Market Cap (Cr): ₹60,140 Cr
- Face Value: ₹5
- EPS: ₹20.07
- Book Value: ₹190
- Roce (%): 13.7
- Debt to Equity: 0.07
- Stock PE: 49.2
- ROE (%): 10.6
- Dividend Yield (%): 1.11
- Total Debt (Cr): ₹821
- Promoter’s Holdings (%): 54.8
Data as of 27th Feb 2024
5. Indian Railway Finance Corporation Ltd (IRFC)
IRFC, established in 1986, is the dedicated financing arm of Indian Railways. With the objective of mobilizing funds for railways, IRFC has funded various railway projects and lent funds to entities in the railway sector.
Quick overview of IRFC:
- Market Cap (Cr): ₹2,00,210 Cr
- Face Value: ₹10
- EPS: ₹4.63
- Book Value: ₹36.9
- Roce (%): 5.32
- Debt to Equity: 8.52
- Stock PE: 33
- ROE (%): 14.7
- Dividend Yield (%): 0.98
- Promoter’s Holdings (%): 0
- Total Debt (Cr): ₹4,06,443
Data as of 27th Feb 2024
6. Bharat Electronics Limited (BEL)
BEL, an Indian state-owned aerospace and defense company, is recognized for its commitment to research and development. With nine factories in India and a debt-free status, BEL is a prominent player in the defense sector.
Quick overview of BEL:
- Market Cap (Cr): ₹1,50,070 Cr
- Face Value: ₹1
- EPS: ₹4.89
- Book Value: ₹20.3
- Roce (%): 29.9
- Debt to Equity: 0.00
- Stock PE: 41.8
- ROE (%): 22.8
- Dividend Yield (%): 0.88
- Promoter’s Holdings (%): 51.14
- Total Debt (Cr): ₹61
Data as of 27th Feb 2024
7. Rail Vikas Nigam Ltd
Rail Vikas Nigam is instrumental in implementing various rail infrastructure projects, including new rail lines, electrification, major bridges, and workshops. These projects are sanctioned by the Ministry of Railways.
Quick overview of Rail Vikas Nigam Ltd:
- Market Cap (Cr): ₹55,170 Cr
- Face Value: ₹10
- EPS: ₹6.98
- Book Value: ₹37.9
- Roce (%): 17.8
- Debt to Equity: 0.76
- Stock PE: 38.2
- ROE (%): 20.8
- Dividend Yield (%): 0.8
- Promoter’s Holdings (%): 87.84
- Total Debt (Cr): ₹5,981
Data as of 27th Feb 2024
8. Ircon International
Incorporated in 1976 as a railway construction company, Ircon International has evolved into a diversified engineering and construction PSU. Specializing in large infrastructure projects, Ircon operates in sectors like railways and highways.
Quick overview of Ircon International:
- Market Cap (Cr): ₹21,811 Cr
- Face Value: ₹2
- EPS: ₹9.99
- Book Value: ₹58.9
- Roce (%): 15.7
- Debt to Equity: 0.30
- Stock PE: 23.2
- ROE (%): 15.4
- Dividend Yield (%): 1.29
- Promoter’s Holdings (%): 89.18
- Total Debt (Cr): ₹1,680
Data as of 27th Feb 2024
Conclusion
In the realm of top railway stocks on Indian stock exchanges, the allure of these investments lies in their resilience as a monopoly business. This article not only provides a comprehensive overview of the featured top railway stocks of India in 2024 but also emphasizes the significance of railway stocks in the ever-evolving market. With daily revisions, detailed ratios, and an assessment of pros and cons, this exploration simplifies stock research, making it more accessible for investors seeking promising opportunities.
FAQs About Top Railway Stocks of India in 2024
Q1: Why are railway stocks considered a safe investment?
A1: Railway stocks are often deemed safe due to their low operating costs, making them cash-rich. Additionally, the entry barrier in the sector contributes to its stability.
Q2: How did IRCTC perform during economic downturns, like the COVID-19 pandemic?
A2: IRCTC showcased resilience during the COVID-19 pandemic, with an 18% increase in freight loadings, proving the preference for railway freights in economic downturns.
Q3: What makes Indian Railways a growing industry despite market fluctuations?
A3: Indian Railways’ extensive network, low operating costs, and monopoly status contribute to its consistent growth, even in the face of market fluctuations.
Q4: How do railway stocks align with Warren Buffett’s investment philosophy?
A4: Warren Buffett has expressed a lifelong love for railroads, citing their low operating costs and entry barriers as key reasons for their enduring trend.
Q5: Can new competitors easily enter the Indian railway market?
A5: The colossal investment required for laying tracks and building an extensive network makes it nearly impossible for new competitors to enter the Indian railway market.
Q6: What are the key factors to consider while investing in railway stocks?
A6: Factors like low operating costs, entry barriers, and the monopoly status of railways make them attractive investments. Investors should also consider the financial health and initiatives of specific railway companies.