Railway stocks have been witnessing a significant rise in prices this week amidst a market, which is filled with mixed sentiments. Since the beginning of this week, railway stock prices have been inching up as buying picks up in this industry. RVNL, Ircon International, IRCTC, and other railway giants have been gaining significantly and touching new highs. So what is driving this buying trend in the railway sector? Let’s dig deeper.
Factors driving the buying trend
The recent surge in railway stock prices can be attributed to the announcement made by Ashwini Vaishnav, Minister of Railways. As per the announcement, the government has plans to build 2500 new general passenger coaches and 10000 air-conditioned coaches for the Indian railways. Apart from these, Mr. Vaishnav announced that there would be 50 all-new Amrit Bharat trains whose production will begin soon. Amrit Bharat is a high-speed luxury train service. This railway stock news also triggered investors to pour money into the railway stocks recently.
In addition, a general expectation is there that the upcoming budget will allocate significant funds to the railway infrastructure and thus the railway stocks are skyrocketing lately. People are also relating this to a previous announcement by the government in November 2023, for producing 3000 new trains in the upcoming five years. All these factors are adding up to building momentum amongst the railway stocks.
As per experts, the Indian railway companies are also witnessing a surge in their stock prices as they are prepping up for working along the government’s initiatives and plans. The railway companies are increasing their capex to expand their business and this is another prime reason for driving the bulls in this sector defying the high valuation of the overall stock market.
Railway Stocks Performance
Now let’s have a look at the top five railway stocks which are topping the charts as per the recent price surge.
- Rail Vikas Nigam Ltd.: The Rail Vikas Nigam share has surged the most at around 38% in the past five days. Today it has gained around 8% in the first half of the market session. The current price of the stock is around ₹ 587 per share. It is trading near its 52-week high. The P/E ratio of the stock is quite high at 77.92 at a market capitalization of ₹ 1.23 crore.
- Ircon International Ltd.: The Ircon international share price has gone up around 13.50% in the past five days and today it has gained around 1.76% until 12.30 pm. The current ircon share price is ₹ 318 per share, which is again close to the 52-week high. The current P/E ratio of the stock is at 32.19 at a market cap of ₹ 29.91 thousand crore.
- Indian Railway Finance Corp Ltd.: The IRFC stock price gained around 12.47% in the last five days and currently trading around ₹.200.44 per share. During the first half of today’s session, the stock gained around 2.48%. The market capitalization of Indian railway finance corporation shares stands at around ₹ 2.62 lakh crore with a P/E of 40.79.
- BEML Ltd.: This stock gained around 5.30% in the past five days and currently trading at around ₹4894 per share. However, today, until the first half of the market session the beml share has been witnessing a fall in its price. It has decreased by around 1.5% until now.
- Indian Railway Catering and Tourism Corp Ltd.: The IRCTC stock price gained the least in the last five days amongst these railway sector giants. The irctc share only gained 1.16% during the past five days while today it is witnessing a bit of selling pressure as the price of the stock has been decreasing and is currently around ₹ 1019 per share. The market cap of the stock is around ₹ 81.55 thousand crore and the P/E stands at 73.42.
Wrapping up
The upcoming budget can play an integral role in moving the prices of railway stocks. As the investors are eyeing a significant push to the Indian railways in this upcoming budget and along with the recent announcements by the Railway ministers, the prices of the railways stocks are raging higher.
Source: https://www.livemint.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.