Multi bagger railway stocks IRCON, RVNL, IRFC, RailTel share prices rebound up to 13%

The railway stocks as Titagarh Rail Systems , Jupiter Wagons ltd among other also saw sharp gains of up to 10% on Thursday.

The railway stocks have been favorite of the investors and having given multi bagger returns to investors. Despite the sharp selling pressure seen in the stocks during last few days, investors are still sitting on handsome returns.

While Indian Railway Finance corporation stands out with around 464% returns in a year, others as IRCON , Rail Vikas Nigam  RailTel etc also not behind having given return of up to 298%. 

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Investors who have Jupiter wagons and  Titagarh Rail systems in their portfolio are also sitting with handsome gains of 252% and 91% in a year despite correction.

The selling pressure in the stocks had been led by overall selling pressure in mid caps and small caps and negative sentiments in the markets. 

Nevertheless analysts see reasonably strong prospects for these companies. Kotak Institutional Equities post its interactions with former railway board member has highlighted  some technology upgrade and other opportunities posed by the sectors

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These include the near-term focus of railways prior to any new tendering will be on the execution of already awarded Vande Bharat orders. The manufacturing of upcoming trains such as Amrit Bharat will take place in existing rail coach factories and there is likely to be limited private participation in the initial stage. This means the Railways PSU’s will still benefit.

The  locomotive and wagons that have remained priority too will see their capacity grow at a steady pace.  

EPC tendering pipeline will be led by medium sized projects as redevelopment of stations being undertaken, electrification and signaling projects  and capacity augmentation (doubling/third line train lines)

In the area of technology while some projects pertaining to signaling systems for Vande Bharat trains may take place, the Important technology improvement initiatives like the Kavach, an automated train safety system that avoids crashes, will happen gradually. The total spend on Kavach is expected to be close to ₹34000 crore over time. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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Published: 14 Mar 2024, 04:52 PM IST