In the last one month, Indian railway stocks have given an average return of 35% and all railway stocks are still skyrocketing.
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Buy or not railway stocks?
So is this the right time to enter Railway stocks? Can railway stocks make more profits in the future?
Let’s find out.
So first of all, let’s find out why railway stocks are rising so much.
So the budget is going to be announced on 23rd July 2024. Right now this assumption is going on. It is assumed that when the budget comes, more benefits will be provided to the railway sector.
Based on this assumption from the government, more and more people are bullish on railway stocks, due to which railway stocks are performing well.
This was the case during the announcement of the interior budget on 1st February this year. In January, people were predicting that the railway sector will be given more benefits by the government in the interior budget, but no such special announcement was made due to which the stocks of the railway sector which skyrocketed in January, were corrected thirty to forty percent after the budget. The same will happen in this budget day 2024 as well. If no special announcement is made for the railway sector, then whatever bubble has formed in the railway stocks can burst anytime and we can see correction in the railway stocks.
What to do now for Railway stocks?
I am not saying that railway stocks cannot improve in the future. But if I am asked, I will avoid investing in railway stocks right now and if I have already invested in railway stocks in the past, then if I get an opportunity now, then I will close my 50% position and I will carry forward the remaining 50%.
List of top Indian Railway stocks
| Company | Year Founded | Description | Main Activities |
|---|---|---|---|
| Indian Railway Finance Corp Ltd. | 1986 | The financial arm of Indian Railways, primarily operates through finance and leasing segments. | Borrows funds to finance and lease assets to Indian Railways. |
| IRCTC Ltd. | 1999 | Provides railway tickets, catering services, and packaged drinking water at railway stations/trains. | Mobile catering, bottled drinking water, retiring rooms, dormitories, executive lounges, and more. |
| Rail Vikas Nigam Ltd. (RVNL) | 2003 | Develops rail infrastructure including new lines, bridges, workshops, production units, and electrification. | Executes railway projects, railway electrification, metro projects, construction of cable-stayed bridges. |
| Container Corporation of India Ltd. (CONCOR) | 1988 | Engaged in logistics and transportation services with EXIM and Domestic segments. | Operation, transportation, and warehousing of containers across railways, roadways, airways, etc. |
| Ircon International Ltd. | 1976 | An integrated engineering and construction company engaged in railways, tunnels, railway electrification, metros, highways. | Completed 390+ domestic and 120+ international projects in 25 countries. |
| RITES Ltd | 1974 | A Navratna and Schedule 'A' Central Public Sector Enterprise involved in engineering and consultancy. | Leasing and exporting railway rolling stock, construction of turnkey projects, wet leasing of locomotives. |