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

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..

As an astute investor, understanding the importance of railway shares in India in your investment portfolio can unlock a world of potential, offering both stability and growth opportunities. Therefore, in this blog, we will explore the best railway shares in India, while delving deeper into Indian railway subsidiaries, and much more. Let’s begin.

Grab Your Ticket: An Overview of the Railway Industry

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. Therefore, the need for Indian railway stocks list with price is likely to grow which is good news for Indian railway share prices. In fact, not only the railway share price but this demand has also given a boost to the share price of companies that manufacture railway components. 

Thus, if you’re looking for a list of railway related stocks in NSE then the next section is for you to determine the best railway stocks in India for 2024.

List of Rail Stocks in NSE

Here is the list of all railway stocks in NSE with prices.

Best Rail Stock	Market Cap (in Cr)	Stock Price
Indian Railway Catering and Tourism Corporation Ltd	₹77,612	₹974.50
Container Corporation of India Ltd	₹54,973	₹912.80
Indian Railway Finance Corp Ltd	₹1,89,231	₹145.60
Rail Vikas Nigam Ltd	₹54,575	₹263.45
RITES Ltd	₹16,554	₹697.45
BEML Ltd	₹13,476	₹3,214.80
Ircon International Ltd	₹21,368	₹232.05
Railtel Corporation of India Limited	₹12,484	₹383.60
Titagarh Wagons Ltd	₹12,618	₹945.45
Texmaco Rail & Engineering Ltd	₹6,878	₹169.60

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 Indian railway shares list is derived from the smallcase stocks collection page. The data on the top railway companies in India in the list is from 1st April 2024. For real-time updates on all railway share prices and market trends, visit the smallcase stocks collection today!

Indian Railway Shares – An Overview of Rail Stocks in India

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

Indian Railway Catering & Tourism Corporation Ltd (IRCTC)

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.

Container Corporation of India Ltd (CONCOR)

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.

Indian Railway Finance Corporation Ltd (IRFC)

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.

Rail Vikas Nigam Ltd (RVNL)

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 shares projects, the company also undertakes projects related to the electrification of railway lines.

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.

BEML Ltd

Bharat Earth Movers Limited is a public railway sector stocks 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.

Ircon International Ltd

Ircon, a public sector company, often experiences upper circuit limits due to its strategic role in the infrastructure sector, specialising in railway and highway construction projects. As a result, positive market sentiment and demand for its services contribute to the upper circuit status of the railway shares.

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.

Titagarh Wagons Ltd

Titagarh Wagons is a leading private railway sector stocks 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.

Texmaco Rail & Engineering Ltd

Texmaco Rail & Engineering is a diversified engineering company with a strong presence in the Indian railway stock list. Operates as one of the best railway stocks in India via multiple business segments, including rail and metro systems, steel foundry, and heavy engineering. Texmaco Rail & Engineering manufactures a wide range of railway products. It also undertakes railway infrastructure projects and offers turnkey solutions for metro rail systems. In the past year, this railway company recorded triple-digit growth, which is the highest among other indian railways shares. For updated railway share prices, check their website.

Features of Indian Railways Share

Let’s have a look at the rail stocks in India down below: 

• 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.

Why to Invest in Indian Rail Stocks?

There are certain benefits of investing in the best rail stocks in India, such as –

• Growing Sector: ​​The Indian railway sector is experiencing a surge 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: Railway stocks are seen as long-term investments due to the extensive time required for infrastructure development, offering steady growth opportunities.

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.

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 buy from Indian railway stocks list with prices 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.

Investing in the Best Rail Stocks via smallcase

To avoid confusion and adopt a hassle-free method of investing, you can also invest in curated portfolios of the best railway stocks India designed by experts, offering a balance between diversification and active management.

Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover’ and enter ‘Railway’ in the search bar and hit enter. You’ll find an array of stock portfolios related to railway companies. Just pick the railway shares that fit your investment criterion.

Make sure you do your diligent research before picking the right railway stocks, considering your long-term investment goals and risk appetite.

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 factors to 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. 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.
• Valuation: Railway share prices are currently trading at a relatively low valuation. This could be a good opportunity to buy into the sector, but it is important to remember that valuations can change quickly.

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: All rail stocks are often seen as long-term investments, 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 typically establish themselves well and 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.
• Be Patient: Investing in rail stocks can be a long-term investment. It is important to be patient and not expect to get rich quickly.

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

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