Railway stocks have been in an uptrend in recent sessions. Shares of railways-linked companies such as Indian Railway Finance Corporation (IRFC), RITES Ltd, Rail Vikas Nigam (RVNL), and others have soared on the back of the India-Middle East-Europe Rail-Port Economic Corridor announced at the G20 Summit. This new infrastructure project that is expected to boost economic development and connectivity between Asia, the Arabian Gulf, and Europe.
The India-Middle East-Europe Rail-Port Economic Corridor will include a railway line that will provide a reliable and cost-effective transit network. The US, Saudi Arabia and other nations are reportedly discussing linking India by port. The railway line could possibly reconfigure trade between the Gulf and South Asia, and it has had a positive impact on the shares of rail-related companies in India.
The value of railway company shares has also jumped on account of support from massive Government investments in the sector. The Ministry of Railways will ask the Cabinet for approval to invest Rs 5.25 lakh crore in the PM Gati Shakti National Master Plan from 2024 to 2031. Another driver has been that from April 1 to August 31 this year, Railways has seen the highest-ever capital expenditure utilisation of around 48% as it spent Rs 1,15,000 crore.
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In one year, shares of Indian Railway Finance Corporation (IRFC) share price has risen over 260% whereas RVNL share price surged over 414% in this time. RailTel share price went up around 100% in this time. Ircon International has delivered over 260% return in this time. Check multibagger railway stocks that have zoomed up to 270% so far in 2023 (Till September 12 closing).
This railway stock is one of the multibagger stocks that Indian stock market has delivered in year-to-date (YTD) time. Ircon share price has surged from around Rs 60 to Rs 151 apiece levels on NSE, logging a gain of 152% in 2023. In last six months, Ircon share price has risen 191%, delivering multibagger returns to its positional investors.
This railway stock has risen from near Rs 33 to Rs 82 apiece levels in YTD time, delivering around 150% return to its long-term investors in 2023. In last six months, it has risen from Rs 27.50 to Rs 82 apiece levels on NSE, logging near 202% rise in this time. So, this is another one of the multibagger stocks, which the Indian stock market has produced in 2023.
This railway stock belongs to the list of multibagger stocks in 2023. In YTD time, this multibagger stock has risen from around Rs 68 to Rs 174 per share levels on NSE, delivering around 154% return to its shareholders in this time. In last six months, RVNL share price has surged from around Rs 64 to Rs 174 per share levels, logging around 173% gain in this time.
This is another multibager stock from the railway space. So far in the calendar year, RailTel share price has zoomed from around Rs 127 to Rs 227 apiece levels on NSE, logging around 78% rise in this time. However, in the last six months, it has doubled shareholders' money by rising from Rs 105 to Rs 227 apiece levels, delivering around 117% return to positional long-term investors in this time.
This railway stock has also delivered handsome returns to its shareholders in 2023. In YTD time, this railway major has risen to the tune of 268% to Rs 354 on NSE, whereas in the last six months, it has given multibagger returns to its positional investors by logging a near 264% gain.
This railway stock has also delivered whopping returns to its shareholders in 2023. In YTD time, this railway major has jumped from Rs 57 to Rs 139 on NSE, logging a massive gain of 139%. Whereas in the last six months, it has given multibagger returns to its positional investors by logging a 220% gain.
As per share market experts, profit booking has triggered in small-cap and mid-cap stocks and hence some deep profit booking is likely in these multibagger railway stocks as well. While technical chartists suggest that many of these railway stocks are in the overbought zone, some fundamental analysts believe that most of these counters were not moving since quite some time which is why the value was suppressed for a long time.
According to Helios Capital's Samir Arora, investors should remain cautious about rail sector stocks as railway companies in India have a history of not being paid on time by governments, thereby impacting their growth. Additionally, sometimes, the government changes or they also cancel orders given to railway companies by the previous government, which can hamper the rally quickly.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.