RVNL, IRFC, RITES, IRCTC, Titagarh Rail Systems: A look at performance of railway stocks this week

Driven by order inflows and expectations of higher capital allocation in the coming Union Budget, most railway stocks advanced this week. Rail engineering consultancy RITES Limited led the gains, rising up to 5.4% in the past five sessions and starting the New Year on a high.

Railway stocks gained on the back of factors like new order wins and bullish commentary by experts on potential gains and sectoral performance.

Experts have cautioned that the performance of rail stocks would largely depend on consistent government expenditure. Increased government spending and expediting the pending projects as well as railway tenders could boost the sectoral stocks.

Here is an analysis of how railway stocks performed this week

RITES gains up to 5.4% on new order wins

Leading state-run engineering consultancy for transport infrastructure RITES Limited shares gained more than 5.4% this week after the company announced winning a new order.

The company on Thursday announced that it has bagged a ₹70 crore order from steel maker SAIL, sending its shares higher by over 2% on the next day. The company also won a $9.7 million contract from the Guyana government.

In December also the company won multiple orders. Positive investor sentiment and optimism among experts over the company’s strong presence in the sector also aided the rally in stock price. The government’s focus on high-speed rail and electrification, RITES is poised for steady growth in future.

IRFC gains around 5% on new order wins

Indian Railway Finance Corporation Limited (IRFC) shares gained more than 5% this week on the back of new order wins.

The dedicated financial institution of Indian Railways and REMCL, a JV of MOR and RITES, has signed a Memorandum of Understanding (MoU) to collaborate on financing Renewable Energy (RE) projects awarded by REMCL for supply to Indian Railways. The partnership also extends to exploring financing options for Thermal, Nuclear, and Renewable power projects established under a Captive model through joint ventures involving Indian Railways and other entities.

Rail Vikas Nigam rises over 1.5%

Rail Vikas Nigam Limited (RVNL) rose by more than 1.5% this week after the company announced two major order wins. The company emerged as the Lowest Bidder for a ₹404.4 crore Koraput-Singapur Road D project floated by East Coast Railway.

RVNL has also emerged as the lowest bidder for the ₹137 crore project of Central Railway.

IRCTC shares gain around 2%

Indian Railway Catering and Tourism Corporation (IRCTC) shares rose by nearly 3% this week after recovering from a 52-week low level. The stock hit a 52-week low on Monday but recovered in the following sessions and hit a high of ₹804.5 apiece on Friday. Positive sentiment around rail stocks helped recover losses.

BEML

Leading wagon manufacturer BEML gained over 1.7% in the past five days on the expectation of new coach orders in the New Year and higher expenditure by the government in the upcoming Budget.

BEML shares started the week lower at ₹4,038.25 but later recovered in subsequent sessions to hit a high of ₹4,248.2 apiece on Friday.

In December the company won multiple orders, including a ₹136 crore contract from the Defence Ministry for High Mobility Vehicles 8x8. The railway stock is in focus amid the expectations of higher outlay for the railway sector in the upcoming Budget.

Texmaco Rail falls marginally

Rail wagons and locomotives manufacturer Texmaco Rail and Engineering Limited shares fell marginally this week following bullish comments by experts.

CARE Ratings also upgraded both long-term and short term bank facilities of the company, boosting the sentiment. Texmaco Rail shares fell 1% to hit a high of ₹202.25 per share on Friday after the announcement, helping it close the week with gains.

Titagarh Rail Systems falls 2.6%

Recovering from Monday’s fall, Titagarh Rail Systems shares advanced for four straight days to Friday this week amid optimism around rail stocks ahead of the budget for FY 2025-26. The stock gained around 0.5% on Friday after posting little gains during other trading sessions in the week.