9 Best Railway Stocks of India in 2024

In this article you will learn on the 9 Best Railway Stocks of India in 2024:

The Indian railway network is the fourth-largest system in the world and is undergoing radical change through various government initiatives and modernisation projects. The transformation will likely benefit railway stocks immensely in the long run. Some key initiatives driving the sector’s growth include 100% electrification of rail routes, the introduction of high-speed Vande Bharat trains, and the development of PM Gati Shakti Cargo terminals. 

The Union Budget 2024-2025 has allocated about Rs. 2.62 lakh crores for the railways, the highest-ever budgetary allocation to date. Railway sector stocks would be the primary beneficiaries of this cash infusion, as the budgetary allocation is intended to modernise the existing infrastructure. In fact, around $15.3 billion has been allocated towards passenger coach manufacture, which will benefit railway stocks in India producing coaches and wagons like BEML and Titagarh Rail Systems. 

The Indian railway sector, and by extension railway stocks, is heavily influenced by factors such as increasing population and urbanisation, the demand for passenger and freight services, and technological advancements. Government policies, modernisation, and safety systems also play crucial roles in shaping the sector’s growth and efficiency.

9 Best Railway share Price List India 2024

If you wish to invest in the 9 best railway stocks in India 2024, check out this 9 railway share price list. It also contains other key details provided by the Samco research analysis team. 

• Indian Railway Catering And Tourism Corporation Ltd.

One of the most recognisable railway stocks in India, the Indian Railway Catering And Tourism Corporation Ltd. is a schedule ‘A’ Mini-Ratna public sector enterprise under the Ministry of Railways. The company provides online ticketing, catering, and tourism services for Indian railways. IRCTC has firmly established itself among the best railway stocks by actively contributing to passenger convenience and enhancing the overall travel experience. 

For an entity of this size, IRCTC is one of the few railway shares with a zero debt-equity ratio. The company’s ROCE is 49.36% and ROE is 38.93%, which are the highest among railway stocks in India 2024. Long-term investors interested in investing in railway sector stocks can consider including IRCTC as part of their portfolio.   

• BEML Ltd.

An Indian public sector company specialising in manufacturing heavy equipment for railways, BEML Ltd. is one of the must-have railway stocks. The company is a key supplier of rolling stock, such as coaches and metro cars, to Indian railways, instantly placing it in the list of 9 best railway stocks in India 2024.

With a debt-equity ratio of zero, BEML Ltd. also features in the list of railway shares with no debt. The company has the highest EPS and Book Value of Rs. 68.76 and Rs. 623.70, respectively. This combined with a history of consistent dividend payments makes BEML Ltd. one of the highly-attractive railway sector stocks.  

• Rail Vikas Nigam Ltd.

One of the more recently established railway stocks in India, Rail Vikas Nigam Ltd. (RVNL) was incorporated in 2003 and is responsible for implementing infrastructure projects that enhance India’s railway network. The company, like many others in this best railway stocks list, has supported the government’s goals of expanding and modernising railway infrastructure by taking up projects, such as new line construction, gauge conversion, doubling of railway lines, and line electrification. 

The fundamentals of Rail Vikas Nigam Ltd. appear strong and on par with other railway sector stocks. The ROE of the company, especially, is at 18.38%, making it the third-highest in the railway shares list. Additionally, RVNL also has a history of consistently distributing dividends. This makes it an attractive option for dividend-seeking investors.      

• Ircon International Ltd.

Founded in 1976, Ircon International Ltd. is among the most unique railway stocks in India. Similar to the other best railway stocks in this list, Ircon International is also a public sector enterprise under the Ministry of Railways. The company provides engineering and construction services with a special focus on transport and railway infrastructure.

Despite being a company in a capital-intensive business, Ircon International has a low debt-equity ratio of just 0.42, signalling its ability to manage debt efficiently. The dividend yield of 1.40%, on the other hand, is the highest among railway sector stocks. One of the noteworthy points about the company is its valuation. Ircon International’s stock PE is just 21.59, which is the lowest compared to the other railway stocks in the country. 

• Indian Railway Finance Corporation Ltd.

One of the more unique railway stocks in India, the Indian Railway Finance Corporation Ltd. (IRFC) only focuses on providing funds to the Indian railways for purchasing rolling stock, infrastructure projects, and railway expansion. The company enables the railways to execute its growth plans without depending on government finances, making it one of the most crucial railway sector stocks.   

IRFC has a debt-equity ratio of zero, which is a commendable feat considering that only a few of the best railway stocks are completely debt-free. The dividend yield of 1.02 and ROE of 12.95% are also quite high in comparison to other railway stocks, making the company an attractive option for long-term investors.  

How to Invest in Railway Stocks? 

With Samco Securities, you can invest in the 9 best railway stocks in India 2024 within seconds. Here is an overview of how to purchase your preferred railway shares through the Samco Trading App.  

• Step 1: Log into the Samco Trading App on your smartphone. 
• Step 2: Search for railway sector stocks and select the one you wish to invest in. 
• Step 3: Click on the ‘Buy’ option. 
• Step 4: Enter the price and the number of railway shares you want to purchase in the order screen.  
• Step 5: Click ‘Quick Trade’ to place the order instantly. 

Once the trade is executed, the railway shares you purchased will be shown under the Holdings section of the Samco Trading App. 

Frequently Asked Questions: Railway Share Price List In India 2024

• How have railway stocks in India performed in recent years? 

Over the past few years, railway stocks have performed stably with the occasional price fluctuations.      

• What is the future outlook for the best railway stocks in India?

Railways shares show promising growth potential driven by the government’s infrastructure expansion plans, increasing passenger and freight traffic volumes, and public-private partnership (PPP) opportunities. 

• • Why should I consider 9 best railway sector stocks?

By investing in the 9 best railway sector stocks in India, you can diversify your portfolio and benefit from this defensive sector.