Best Railway Stocks to Buy in India
Founded in 1836, the Indian Railway works as a statutory body under the Ministry of Railways. It is responsible for operating the country’s national railway system. This gigantic railway network is spread across 68,000 km, making it the fourth largest network in the world. In addition, Indian Railways is one of the biggest employers in the country, with more than 14 crore staff members.
Some of the railway companies are also listed on the Indian stock exchanges. Let’s take a look at:
RITES is a government-owned consultancy and engineering company which focuses on transport infrastructure including railway projects. In FY22, the company reported revenue of ₹2,575 crore and a net profit of ₹497 crore. It also exports to customers in Thailand, Malaysia and Indonesia. The company has a market cap of ₹8,366 crore.
The government-owned Indian Railway Catering and Tourism (IRCTC) is the tourism and ticketing arm of the Indian railways. It enjoys a monopoly in online railway ticket booking and selling packaged drinking water on trains. The company has a market cap of around ₹47,000 crore. In FY22, it reported revenue and net profit of ₹1,879 crore and ₹663 crore, respectively.
Railtel Corp. Ltd.
Railtel Corp. Ltd. It is a government-owned information and communications technology infrastructure provider. The company has a pan-India optic fibre network with exclusive right of way along railway tracks. It was incorporated in 2000 to modernise Indian Railways’ telecom system. Railtel has a market cap of ₹3,358 crore. In FY22, it reported revenue and net profit of ₹1,521 crore and ₹208 crore, respectively.
Titagarh Wagons has a market cap of ₹3,405 crore. It makes and sells wagons, coaches, metro trains, train electricals and steel casting. It caters to domestic and overseas customers. The company posted revenue and net profit of ₹1,479 crore and ₹79 crore, respectively in FY22.
Container Corporation of India (CONCOR) is a logistics services provider. Incorporated in 1988, it transports containers through the rail network. It has also expanded its business by venturing into management of ports, air cargo complexes and cold chains. The company commands a market cap of ₹36,755 crore.
BEML is a leading construction and mining equipment manufacturer in India – with around half of its revenue coming from this segment. It also makes coaches for Indian railways and metros. The company also supplies equipment to the Indian army and other defence forces. BEML has a market cap of ₹5,119 crore. It posted revenue and net profit of ₹4,337 crore and ₹134 crore, respectively in FY22.
The railways industry is expected to grow tremendously in the coming years and may lead to more opportunities for the businesses. However, you should always review the risk factors, performance history, and financials of the companies before investing.
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.