Home Collections Best Indian Rail Stocks in 2024: List of Top-Performing Railway Shares

Best Indian Rail Stocks in 2024: List of Top-Performing Railway Shares

Best Indian Rail Stocks in 2024: List of Top-Performing Railway Shares
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The Indian railway sector has long been a central pillar of the nation’s transport infrastructure, playing a vital role in the economy. Reflecting its significance, the Interim Budget for 2024-2025 earmarked an impressive Rs 2.55 lakh cr. for the Indian Railways, marking a 5.8% increase from the previous year’s budget. This financial commitment spurred investor confidence, propelling railway-related stocks to notable heights, with many recording double-digit growth in the past year.

Therefore, in this blog, we will explore the best railway shares in India, while delving deeper into Indian railway, and much more. Let’s begin.

Top Railway Stocks in India 2024

Stock NameSub-SectorMarket Cap (in Cr)Stock Price1Y ReturnFundamental Score
Railtel Corporation of India LtdCommunication & Networking₹13,750.61₹413.95250.0810.00
Container Corporation of India LtdLogistics₹67,196.03₹1,074.8460.418.00
Titagarh Rail Systems LtdRail₹16,525.82₹1,415.70252.296.21
Rail Vikas Nigam LtdSpecialized Finance₹77,249.99₹381.70207.205.71
Jupiter Wagons LtdRail₹21,653.66₹602.20332.554.99
Indian Railway Finance Corp LtdSpecialized Finance₹2,40,460.51₹177.80455.474.52
Indian Railway Catering and Tourism Corporation LtdOnline Services₹88,724.00₹1,020.3567.734.30
Ramkrishna Forgings LtdRail₹12,644.42₹666.1576.644.30
RITES LtdBusiness Support Services₹17,651.38₹697.9586.744.25
BEML LtdRail₹19,018.00₹4,400.64214.433.92
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on Indian railway shares list, including the railway share price list is from 29th May 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Indian Railway Shares in India 2024 – An Overview

The best railway stocks in India encompass a diverse range of companies operating within the railway industry in India. Thus, let’s look at some of the best railway stocks for 2024.

Railtel Corporation of India Ltd

Railtel, listed on the stock exchange, frequently hits upper circuit limits as it plays a crucial role in India’s digital transformation within the railway sector. Thus, the company’s involvement in providing high-speed internet and telecom services to the railway industry makes it a sought-after stock with growth potential, leading to upper-circuit trends. According to our list, Raitel is the best railway stock to buy now according to its fundamental score. As of 29th May 2024, this railway company in India has a market capitalisation of Rs. 13,750 cr. The company’s revenue growth at a yearly rate has also increased by 14.19%, over the past 5 years.

Container Corporation of India Ltd

CONCOR is a Navratna public sector undertaking under the Indian Ministry of Railways. CONCOR is one of the best railway shares that provides end-to-end logistics solutions, including storage, handling, and transportation of containerized cargo. This midcap Indian railways subsidiaries occupy 9.91% of the market share. This Indian railway-related share has a market capitalisation of Rs. 67,196 cr. and is 2.85x as volatile as Nifty. The debt-to-equity ratio has been 5.72%, while the current ratio has been 257.26%, over the last 5 years.

Titagarh Rail Systems Ltd

Titagarh Rail Systems Ltd is a leading private railway sector shares company engaged in the manufacturing of railway wagons, coaches, and steel castings. The company specialises in freight wagons, including open and covered wagons, flat wagons, and specialised wagons for carrying specific goods. Considered one of the best railway stocks India that serves both domestic and international markets, therefore, you should check for its railway share price. Furthermore, with a market capitalisation of Rs. 16,525 cr., the company has witnessed a tremendous revenue growth of 16.8% at a yearly rate. Additionally, the market shares increased from 17.06% to 18.85% during the same period.

Rail Vikas Nigam Ltd

RVNL is one of the government-owned stocks in the railway share list responsible for executing railway infrastructure projects in India. The best railway stocks like these focus on the construction of new railway lines, doubling and gauging conversion of existing tracks, and modernization of railway stations. Other than railway-related projects, the company also undertakes projects related to the electrification of railway lines. With a market capitalisation of Rs. 77,249 cr., this midcap railway best stock’s market share has also increased from 7.46% to 12.02% over the last 5 years.

Jupiter Wagons Ltd

Jupiter Wagons Limited, formerly Commercial Engineers & Body Builders Company Limited, is a manufacturer of railway wagons, passenger coaches, wagon components and castings in India. As of 29th May 2024, the market capitalisation of the company is Rs. 21,653 cr. Over the last 5 years, the company’s revenue has grown at a yearly rate of 83.99%. Additionally, the company’s market share has also increased from 1.29% to 13.85%. In terms of debt to equity ratio, it has been 30.31%, vs the industry average of 60.79%.

Indian Railway Finance Corp Ltd

IRFC is a dedicated financing arm of the Indian Railways. It is responsible for raising funds to finance railway projects and infrastructure development. Considered one of the best railway stocks India that primarily focuses on leasing rolling stock (locomotives, coaches, wagons) to the Indian Railways. This large-cap stock in the railway sector stocks list has a market capitalisation of Rs. 2,40,460 cr. as of 29th May 2024. The annual rate of revenue has grown at a yearly rate of 20.89% over the last 5 years. The company’s market share has also increased from 8.73% to 13.42% during the same period.

Indian Railway Catering and Tourism Corporation Ltd

This midcap railway listed company is a government-owned company that is considered among the best railway companies in India with high market capitalisation, and also among railway PSU stocks in India. Provides catering, tourism, and online ticketing services for Indian Railways, it is one of the largest railway catering companies in the world and has expanded its services to include luxury tourist trains, hotel bookings, and various tourism packages. As of 29th May 2024, the market capitalisation of this IRCTC stock is Rs. 88,724 cr. and the debt-to-equity ratio is 2.89%. The stock is 3.18x as volatile as Nifty. Furthermore, net income has grown at a yearly rate of 35.45%, vs the industry average of -60.73%.

Ramkrishna Forgings Ltd

Ramkrishna Forgings Limited is engaged in the manufacturing of forgings. The company was established in 1981 and is headquartered in Kolkata, West Bengal. It is known for delivering high-quality forged, machined, and fabricated products to a wide range of sectors. These sectors include Automotive, Railways, Farm Equipment, Earth Moving, Mining & Construction, Oil & Gas, Power, and General Engineering. The smallcap company in the railway sector stocks list has a market capitalisation of Rs. 12,664 cr. The company’s revenue growth at a yearly rate is 16.41% over the last 5 years. The market share has increased from 19.65% to 21.36% during the same period.

RITES Ltd

RITES Ltd is a smallcap rail company in India, which is a dedicated financing arm of the Indian railway share list. Thus, it is responsible for raising funds to finance railway projects and infrastructure development. IRFC, one of the railway shares, primarily focuses on leasing rolling stock (locomotives, coaches, wagons) to the Indian Railways. The smallcap company has a market capitalisation of Rs. 17,651 cr. as of 29th May 2024. Furthermore, the company’s debt-to-equity ratio has been 1.28% over the last 5 years.

BEML Ltd

Bharat Earth Movers Limited is a public railway sector stock company. Thus, it is primarily engaged in the manufacturing of mining and construction equipment, defence products, and railway rolling stock. BEML manufactures a wide range of rolling stock, including coaches, wagons, and locomotives for the Indian railways stocks. Additionally, it is involved in the defence sector, producing a diverse range of defence and aerospace products. As of 29th May 2024, the company’s market capitalisation is Rs. 19,018 cr. The debt to equity ratio is 23.72% while the current ratio is 234.04%, over the last 5 years.

Investing in Rail Stocks via smallcase

Did you know you can invest in the best Indian railway stocks selected by SEBI-Registered analysts? Yes, with smallcase, it is possible.

Let’s learn more about smallcase. 

A smallcase is a basket or portfolio of stocks and/or ETFs that represents a specific theme, strategy, or objective. smallcase offers a convenient, hassle-free way to invest in a diversified portfolio. It is created and managed by SEBI-registered investment professionals (also known as smallcase managers).

Among 500+ smallcases, here are some of the top railway smallcases.

Omni Bullet Train-Great Indian Railways smallcase by Omniscience Capital

Omni Future of Mobility smallcase by Omniscience Capital

Disclosures for Omni Bullet Train-Great Indian Railways & Omni Future of Mobility smallcase

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

What are Rail Stocks?

Rail stocks in India refer to the shares of companies that are directly or indirectly involved in the Indian railway industry. These companies engaged in various activities related to the railways, such as manufacturing rolling stock (locomotives, coaches, and wagons), providing railway infrastructure, offering logistics and freight services, or operating trains. Investing in railway stocks list with price in India allows individuals to potentially benefit from the growth and development of the railway sector in India.

Scope of the Railway Industry in India 2024

From bustling metropolises to remote villages, the railways serve as a lifeline for millions of Indians, providing affordable and efficient means of travel. The railway industry, often hailed as the backbone of transportation, encompasses a vast network of railways, trains, and associated infrastructure. With a rich history spanning over 160 years, the Indian Railway sector has witnessed continuous growth with many listed railway companies in India often reaching new heights.

To address the increasing need for freight services and to connect remote areas, several railway sector companies are being utilised with support from the government.

Why to Invest in Indian Rail Stocks?

Thus, if you’re looking for reasons to invest in railway related stocks, here are some:

  • Growing Sector: ​​The Indian railway sector is experiencing a boom due to government support, technological innovation, and rising demand, attracting investors.
  • Government Support: It is evident through increased budget allocation for railways, boosting investor confidence in the sector’s growth prospects.
  • Diverse Projects: For FY 2024-25 include economic railway corridors aimed at optimising logistics for energy, minerals, and cement, enhancing port connectivity, and upgrading high-traffic corridors, crucial for the PM Gati Shakti plan.
  • Passenger Expectation: Railways plan to revamp 40,000 bogies to Vande Bharat standards, focusing on passenger safety and comfort, which may increase demand for railway services.
  • Long-Term Investment: Good railway stocks are seen as long-term investments due to the extensive time required for infrastructure development, offering steady growth opportunities.

How to Invest in the Best Rail Stocks in India?

There are several avenues to invest in the best rail stocks in India, catering to different risk appetites and investment styles. One can invest individually or by buying mutual funds or exchange-traded funds (ETFs) that invest in rail stocks. You can also invest a fixed amount regularly in railway-focused mutual funds or ETFs through systematic investment plans (SIPs) to benefit from rupee-cost averaging and long-term wealth creation.

Factors to Consider Before Investing in Top Indian Rail Stocks

If you’re looking for best railway stocks to buy in India, here are some of the factors that you can consider before investing in the best railway stocks in India:

  • Government Policy: The Indian government is investing heavily in the railways, which is a positive sign for the railway sector stocks in India. Therefore, the government has set a target of doubling the size of the Indian railways stock list network by 2030. As a result, this is expected to lead to increased demand for railway services.
  • Economic Growth: The Indian economy is growing at a rapid pace, which is another positive sign for the railway sector stocks. As the economy grows, more people will be able to afford to travel by train, which will lead to increased demand for the best railway stocks India.
  • Competition: The Indian railway stocks sector is facing increasing competition from other modes of transport, such as road and air travel. However, the railways still have several advantages, such as their high capacity and low cost.
  • Financial Performance: It is important to assess the financial performance of the Indian rail stock companies before investing. Look at factors such as revenue growth, profitability, and debt levels.

Features of Indian Railways Share

Following are the features of rail stocks in India:

  • Extensive Network: Fourth largest railway network globally, spanning over 68,000 km.
  • Passenger-Centric: World’s largest passenger carrier, transporting millions daily.
  • Freight Powerhouse: Key player in goods transportation, supporting India’s economic growth.
  • Diverse Services: Offers catering, tourism, parcel, and various train types.
  • Modernising and Expanding: Investing heavily in technology and infrastructure development.

Benefits of Investing in Rail Stocks in India

There are many advantages to investing in rail stocks and railway related shares. Here are a few of the most important ones:

  • Diversification: Investing in a list of railway stocks in India can help diversify an investor’s portfolio, reducing overall risk. Rail stocks are not as correlated with other asset classes, such as stocks and bonds, which can help to reduce the volatility of an investor’s portfolio.
  • Long-Term Investment: With the potential for steady growth over time. The railway industry is cyclical but it has a long history of growth. This makes rail stocks a good option for those who are looking for a long-term investment.
  • Dividends: Many railway companies pay dividends, which can provide investors with a steady stream of income. Companies in the rail sector have a history of paying dividends, making them an attractive option for investors seeking income.
  • Government Support: The rail stocks of companies are often supported by the government, which can provide a number of benefits. For example, the government may provide subsidies for railway construction or operation, which can help to reduce the cost of doing business for railway companies.
  • Increasing Demand: The demand for railway services is increasing, due to factors such as population growth, urbanisation, and economic growth. This increasing demand is expected to lead to increased revenue, a rise in railway share prices, and more.

Investing in Rail Stocks: Tips and Strategies

By following the below mentioned criteria, it will be easier for you to identify the best railway shares in India. 

  • Do Your Research: Before investing in any rail stocks, it is important to do your research and understand the company’s business model, financial performance, and competitive landscape.
  • Consider the Long Term: Railway shares or rail shares in India can be often seen as a long-term investment, with the potential for steady growth over time. Investors should be prepared to hold their investments for the long term.
  • Diversify Your Portfolio: It is important to diversify your investments and not put all of your eggs in one basket. By investing in a variety of rail stocks, you can reduce your overall risk.
  • Rebalance Your Portfolio Regularly: To mitigate the risk, it is important to rebalance your portfolio to ensure that it remains aligned with your risk tolerance and investment goals.

As always, investors must do their own research and/or consult their financial advisor before investing in railway stocks India.

Who Should Invest in Railway Stocks?

Investing in railway stocks is beneficial for investors aligning with below mentioned investing hypothesis:

  • Future Scope: Railway industry is a popular investment choice due to its large scale, government support, consistent growth, technological advancements, and diverse services.
  • Growth Potential: Investment attractiveness due to the railway industry’s evolution since its inception.
  • Stringent Policies: Railway sector is affected by stringent government regulations, geopolitical factors, and labour disputes, impacting market performance.

To Wrap It Up…

In conclusion, the evolution of rail stocks and the railway industry presents future growth, innovation, and enduring relevance. Thus, companies mentioned earlier will have a diverse range of opportunities opening up for their rail sector shares. However, by adopting a diversified approach, and staying well-informed, investors can position themselves to ride the rails of success in the ever-evolving world of rail stocks.

Are you ready to hop on board and ride the railway wave? By investing in a smallcase portfolio of rail shares, you can not only be part of this transformative journey but also enjoy the potential benefits of a diversified investment approach. So, hop aboard and consider exploring smallcase to invest in a portfolio of rail stocks, and be a part of the fascinating evolution of the railway industry.

FAQs

1. What are the best railway stocks to buy in India? 

Based on the highest fundamental score, here are the five best railway stocks to buy in India 2024:
(a) Railtel Corporation of India Ltd
(b) Container Corporation of India Ltd (CONCOR)
(c) Titagarh Rail Systems Ltd
(d) Rail Vikas Nigam Ltd (RVNL)
(e) Jupiter Wagons Ltd

Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement

2. Is it a good time to invest in the best railway stocks India?

The suitability of investing in India railway stocks depends on your financial goals, the growth of railway sector stocks, and market conditions. However, it’s important to do your own research and/or consult a financial advisor before investing in the best railway stocks in India.

3. What is Rail Drishti?

The Indian Railways stock list has introduced a mobile app and internet platform called Rail Drishti. It usually offers up-to-date data and perceptions about several facets of the Indian railway network.

4. Are there any railway penny stocks in India?

Railway penny stocks are shares of smaller-cap companies in the railway industry that trade at relatively low prices. Although these are less common due to the high capital requirements of the railway sector, investors may still come across penny stocks in related areas like component manufacturing and small-scale service provision. However, it’s important to do your own research and/or consult a financial advisor before investing in the best penny rail-related stocks in India.

5. How to find the list of private railway companies in India?

You can find the list of private railway companies in India on stock collection pages on smallcase.