Many retail investors’ favorite stocks have suffered huge losses in the recent stock market crash. Major shares of Railways are also included in these. Shares ranging from Rail Vikas Nigam Limited to IRFC have fallen by 35 to 40 percent from their high. Now what should investors do in such a situation?
In this, the share price of Rail Vikas Nigam Limited (RVNL) among railway companies has declined by about 35 percent from its record high of ₹ 622 per share. Similarly, the share price of IRCTC has fallen by almost 30 percent from its record high of ₹ 1,138.90 per share. IRFC’s share price has fallen nearly 40 per cent from its all-time high of ₹229 per share, while IRCON International’s share price is also down 45 per cent from its record high.
According to stock market experts, railway companies have presented satisfactory quarterly results in Q2 2024. The Indian government is expected to increase its focus on capex expansion of railway companies, which is likely to increase the business of these railway companies. He says that after the Maharashtra Assembly elections, the Government of India (GoI) may focus on Rail Kavach to control railway accidents and railway companies like RailTel and RVNL may benefit from this government move. Companies like IRCTC can remain as safe investments as they monopolize the business of online railway ticket booking.
Buy in Railway Shares?
Mahesh M Ojha, AVP Research, Hensex Securities, on railway stocks in the current market fall, says railway companies have reported good Q2FY25 results and GoI is expected to increase their spending on railway infrastructure after the Maharashtra assembly elections. GoI can focus its attention on companies related to rail armor to control railway accidents. Therefore, there may be an increase in the capex expansion of railway companies from January 2025. Mahesh M Ojha says that you can consider shares of RVNL and RailTel, as these companies are expected to profit from their Rail Kavach business. However, to be safe, one can also look at IRCTC shares, which is a permanent railway share.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.