Best 5 Indian Railways stock must keep in your portfolio

As we know Indian Railways is a monopoly business And by 2030, Indian Railways aims to achieve 100% electrification, multi-track congested routes, improve speeds and increase the share of railways in freight transport to 45%.

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NseCraze

1/27/20243 min read

Best 5 fundamental strong Indian Railways stock.

Note - In this blog we have provided all the information based on our analyzes and news updates, so before investing in any stock, must do your own analysis and get advice from your financial expert.

As you know India is developing at a very fast pace in the last few years and it is expected that India will develop at an even faster pace in the coming years and Indian Railways is at the top of the list as far as the development of India. Indian Railways itself is a government company and is not listed on the stock exchange. Some companies related to the railway sector are listed on the stock exchange. Indian Railways is one of the largest railway networks in the world and is a lifeline for transportation and connectivity across the vast expanse of India. Established during the British colonial era, Indian Railways has grown into a gigantic organization that plays a crucial role in the development of the country. Indian Railways operates an extensive railway network of over 67,000 kilometers that connects remote villages, bustling cities, industrial hubs and tourist destinations across India. Historically, Indian Railways operated as a monopoly in the railway sector, with exclusive control over railway infrastructure, operations and services. Hence this sector is the best from an investment point of view.

These are the 5 best companies which play an important role in the development of Indian railways.

IRCTC - The digital Lifeline of Indian Railways. The IRCTC operates in several areas of business, primarily revolving around railway ticketing, catering, and tourism services. Here's a breakdown of its core business segments Railway Ticketing, Catering Services, Tourism Services & Digital Initiatives Etc. The IPO price of IRCTC was set at ₹320 per share. It’s IPO was launched in October 2019 and received significant interest from investors. The IPO was oversubscribed by more than 112 times.

CONCOR - CONCOR stands for Container Corporation of India Ltd. It is a Navratna Public Sector Undertaking (PSU) under the Indian Ministry of Railways. CONCOR plays a vital role in India's logistics and transportation sector. As a subsidiary of Indian Railways. CONCOR primarily operates in the business of containerized cargo transport and logistics solutions. it operates a vast network of container terminals, inland container depots (ICDs), and freight stations, facilitating the movement of cargo across the country. Its strategic infrastructure and government backing provide stability and long-term growth prospects.

IRFC -IRFC is a wholly-owned government entity, which adds a layer of stability and credibility to its operations. As a financial arm of Indian Railways, IRFC enjoys strong government support and is integral to financing railway infrastructure projects and rolling stock procurement.

Investing in Indian Railway Finance Corporation (IRFC) can be considered attractive for several reasons Government Backing, Monopoly Status, Stable Revenue Streams, Essential Infrastructure Sector, Long-Term Financing Opportunities, Low Default Risk & Attractive Dividend Yield. The IPO price of Indian Railway Finance Corporation (IRFC) was set at ₹25 to ₹26 per share and now the per shre price is 170.90rs.

RVNL - RVNL is a government-owned company under the Ministry of Railways, Government of India. This government backing provides a level of stability and credibility to the company's operations, which can be reassuring for investors. RVNL operates in the infrastructure sector, specifically focusing on the development and implementation of railway infrastructure projects in India. Railways play a crucial role in the country's transportation network, and investments in railway infrastructure are essential for economic growth, connectivity and trade facilitation. RVNL's IPO was launched in April 2019. The IPO was set at ₹17 to ₹19 per share. and now it's treading on 299.60. So It can be considered as potentially good investment.

RITES Ltd - RITES is a government owned engineering consultancy firm primarily under the Ministry of Railways, Government of India. Government support provides stability and credibility to the company's operations, which can be reassuring to investors. RITES provides a wide range of consultancy services in various sectors including railways, infrastructure, transport and urban planning. His experience extends to areas such as project management, feasibility studies, technical design and construction supervision. He has a long track record of successfully executing projects and consultancy services, both within India and internationally. The track record of delivering high quality projects on time and within budget enhances reputation and competitiveness in the marketplace. Some points to make it investable: varied service portfolio, government support, solid track record, long-term contracts, experience in the railway sector and attractive valuation.




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